Substantially gainful employment refers to steady, regular work that provides income above the federal poverty level for one person. It also involves the ability to perform the job's duties with a reasonable degree of reliability and stability. Factors like job skills, education, and the physical and mental demands of the job are considered.

In the context of VA disability benefits, it's used to determine whether a veteran is eligible for Total Disability based on Individual Unemployability (TDIU). If a veteran’s service-connected conditions prevent them from maintaining substantially gainful employment, they may qualify for TDIU, even if their VA rating is below 100%.

Marginal employment is work that falls below the threshold of substantially gainful employment. It typically includes jobs where the veteran earns less than the poverty level, or works in a sheltered or protected work environment—such as a job with significant accommodations or relaxed performance expectations.

The VA does not consider marginal employment as evidence of employability. Veterans who are only able to perform marginal work may still qualify for TDIU, since their employment does not demonstrate the ability to maintain true financial independence.

• Part-time jobs that don’t pay above the poverty threshold

• Jobs in protected work environments (e.g., working for a family member, or being accommodated beyond what’s typical)

• Sheltered employment, where the veteran is not held to normal standards of performance or attendance

Note: These examples are not exhaustive. Marginal employment can take many forms, and each case is evaluated based on its unique facts and circumstances.

The difference between substantially gainful and marginal employment is critical in TDIU claims. Veterans may appear “employed” on paper, but if that work is marginal, it does not disqualify them from receiving full VA disability compensation.

A VA-accredited representative can help identify and document marginal employment to support a TDIU claim. We have attorney’s and representatives here at Greene & Marusak that can help you out with this.

Give us a call at (844) 483-8737