The annual wage limitation is the maximum amount of earnings credited as wages to
an individual's earnings record for any calendar year. It is determined annually by
a formula under section 230 of the Act.
Before 1991, the maximum wage bases for Social Security (old age, survivors and disability
insurance) and Medicare (hospital insurance) were the same. P.L. 101-508 established
a separate and higher wage base for Medicare beginning 1991. Beginning with wages
paid after 1993, there is no wage base limit for Medicare (Revenue Reconciliation
Act of 1993).