The SDI withholding rate for 2025 is 1.2 percent. Effective January 1, 2024, all wages are subject to SDI contributions.SDI is a deduction from employees' wages. Employers withhold a percentage for SDI on all subject wages. These taxes are also called SDI contributions. Example. If your disability is work-related, state Workers' Compensation benefits may provide you with up to two-thirds of your salary. If your disability is work-related, state Workers' Compensation benefits may provide you with up to two-thirds of your salary. For an employee, SDI withholding appears on the pay stub as "SDI" and under the taxes and withholdings section. But you may pay federal taxes on a portion of your Social Security benefits, depending on your income. California Residents: If you make no state tax withholding election,.