Substantial Gainful Activity - SGA

AAA

DEFINITION of 'Substantial Gainful Activity - SGA'

The threshold prescribed by the Social Security Administration (SSA) for determining eligibility for Social Security benefits. Substantial gainful activity (SGA) is a specified dollar amount. It is updated each year to reflect inflation, and it represents the minimum level of employability which will render a person productive and, therefore, ineligible for Social Security benefits. The SSA employs higher threshold levels of SGA for persons with specific disabilities, such as blindness.

INVESTOPEDIA EXPLAINS 'Substantial Gainful Activity - SGA'

For the year 2006, the SSA has set the SGA amount for individuals at $860 per month. This means that any individual who is able to engage in employment earning more than $860 per month will be ineligible for benefits. For blind persons, a higher SGA amount of $1,450 was set for 2006.

Once the SSA approves disability benefits for a given citizen, it allows that person to continue to receive benefits for a brief period even if he or she is successfully able to re-enter the workforce and earn more than the SGA amount each month. This is intended to provide an incentive for disabled people to seek gainful employment and re-enter the workforce in a different capacity for the long term.

RELATED TERMS
  1. Business Activities

    Any activity that is engaged in for the primary purpose of making ...
  2. Inflation

    The rate at which the general level of prices for goods and services ...
  3. Medicare

    A U.S. federal health program that subsidizes people who meet ...
  4. Social Security Number - SSN

    A nine-digit number assigned to citizens, some temporary residents ...
  5. Social Security

    A United States federal program of social insurance and benefits ...
  6. Medicaid

    A joint federal and state program that helps low-income individuals ...
Related Articles
  1. Building An Emergency Fund
    Retirement

    Building An Emergency Fund

  2. Choosing The Best Disability Insurance ...
    Options & Futures

    Choosing The Best Disability Insurance ...

  3. Overcome Your 6 Biggest Digital Banking ...
    Personal Finance

    Overcome Your 6 Biggest Digital Banking ...

  4. How Much Social Security Will You Get?
    Retirement

    How Much Social Security Will You Get?

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center