---
kind: "section"
citation: "20 C.F.R. § 404.220"
title: "20"
number: "404.220"
heading: "Average-monthly-wage method."
url: "https://uscodex.org/cfr/20/404.220"
---

# §404.220. Average-monthly-wage method.

- (a) **Who is eligible for this method.** You must before 1979, reach age 62, become disabled or die to be eligible for us to compute your primary insurance amount under the average-monthly-wage method. Also, as explained in [§ 404.230](/cfr/20/404.230.md), if you reach age 62 after 1978 but before 1984, you are eligible to have your primary insurance amount computed under a modified average-monthly-wage method if it is to your advantage. Being eligible for either the average-monthly-wage method or the modified average-monthly-wage method does not preclude your eligibility under the old-start method described in [§§ 404.240 through 404.242](/cfr/20/404.240..404.242.md).
- (b) **Steps in computing your primary insurance amount under the average-monthly-wage method.** We follow these three major steps in computing your primary insurance amount under the average-monthly-wage method:
  - (1) First, we find your average monthly wage, as described in [§ 404.221](/cfr/20/404.221.md);
  - (2) Second, we look at the benefit table in appendix III; and
  - (3) Then we find your primary insurance amount in the benefit table, as described in [§ 404.222](/cfr/20/404.222.md).
  - (4) Finally, we apply any automatic cost-of-living or ad hoc increases that became effective in or after the year you reached age 62, or became disabled, or died before age 62, as explained in [§§ 404.270 through 404.277](/cfr/20/404.270..404.277.md).

## Notes

### Authority

Authority: Secs. 202(a), 205(a), 215, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(a), 405(a), 415, and 902(a)(5)).

### Source

Source: 47 FR 30734, July 15, 1982, unless otherwise noted.