FOR LAWYERS

Average Monthly Earnings (AME)

By
Josef Rappaport
/
December 14, 2022

Average Monthly Earnings, also known as AME, is a term commonly used in social security disability law. It refers to the average amount of money that a person earns per month from their job or jobs. AME is an important factor in determining an individual's eligibility for social security disability benefits.

Key Takeaways

  • Average Monthly Earnings (AME) is the average amount of money that a person earns per month from their job or jobs.
  • AME is used to determine an individual's eligibility for social security disability benefits.
  • AME also affects the amount of disability benefits that a person receives.
  • AME is calculated by dividing a person's total earnings by the number of months in the relevant time period.

How AME is Calculated

AME is calculated by taking the total amount of money that a person has earned in a specific time period and dividing it by the number of months in that time period. For example, if a person earned $24,000 in the last year, their AME would be $2,000 per month ($24,000 / 12 months = $2,000).

The Role of AME in Social Security Disability Eligibility

AME plays a significant role in determining whether an individual is eligible for social security disability benefits. In general, a person must have a certain level of AME in order to qualify for these benefits. The specific amount of AME required for eligibility varies depending on the type of disability and the individual's age.

How AME Affects Disability Benefits

Once a person is found to be eligible for social security disability benefits, their AME will also determine the amount of benefits that they receive. In general, the higher a person's AME, the lower their disability benefits will be. This is because the goal of the social security disability program is to provide financial assistance to those who are unable to work due to a disability, but not to completely replace their income.

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