Can You Make Money While in Prison? Pay, Deductions, and Benefits

How much do inmates make in prison depends on the system and the job, but the numbers are small across the board. Federal inmates earn between $0.12 and $0.40 per hour for standard facility work, and the highest-paying federal prison industry jobs top out around $1.15 per hour.1Federal Bureau of Prisons. Work Programs State prisons range from nothing at all to roughly $2.00 per hour on the high end. And a meaningful share of anything earned is redirected to court-ordered obligations before it lands in an inmate’s account.

Federal Prison Wages

Every sentenced federal inmate who is medically able is required to work. Most are assigned to institutional jobs that keep the facility running: food service, groundskeeping, plumbing, painting, warehouse operations. Those jobs pay between $0.12 and $0.40 per hour.1Federal Bureau of Prisons. Work Programs

A smaller group works for UNICOR, the trade name for Federal Prison Industries, a government-owned corporation Congress created in 1934. UNICOR runs manufacturing and service operations in areas like clothing, textiles, electronics, and industrial products. Pay runs from $0.23 to $1.15 per hour depending on the assigned grade. The wages are better, but slots are scarce. About 8% of work-eligible federal inmates hold UNICOR jobs, and roughly 25,000 are on the waiting list.2Federal Bureau of Prisons. About UNICOR

State Prison Wages

State pay is far less predictable. A 2022 study of prison labor across all 50 states found that regular, non-industry prison jobs paid an average of about $0.13 to $0.52 per hour. State-run correctional industries, which produce goods like furniture or license plates, paid more, averaging $0.30 to $1.30 per hour. Only around 6.5% of incarcerated workers hold those industry jobs.

Some states pay nothing for regular prison work. Alabama, Arkansas, Georgia, Mississippi, and Texas are among them. On the other end, a handful of states pay up to $2.00 per hour for certain assignments. The gap between states is large, and even facilities within the same state can pay different rates for similar work.

What Gets Deducted Before You See It

Earning money in federal prison does not mean keeping it. The Bureau of Prisons runs an Inmate Financial Responsibility Program that requires inmates with outstanding financial obligations to make regular payments toward them. Under 28 CFR 545.11, a unit team reviews each inmate’s debts at classification and builds a payment plan.3eCFR. 28 CFR 545.11 – Procedures Obligations are prioritized in this order:

  • Special assessments imposed under federal sentencing law
  • Court-ordered restitution owed to victims
  • Fines and court costs
  • State or local court obligations
  • Other federal government debts

How much comes out depends on the job. Inmates in regular institutional jobs or the lowest UNICOR pay grade must pay at least $25.00 per quarter. Inmates in UNICOR grades 1 through 4 are expected to allot at least 50% of their monthly pay toward the plan.4eCFR. 28 CFR Part 545 Subpart B – Inmate Financial Responsibility Program Someone earning $1.15 per hour at the top UNICOR grade loses half of it before it hits the account.

Refusing to participate is technically allowed but heavily penalized. Inmates who decline face restrictions on furloughs, are capped at the lowest pay level, and get a tighter monthly commissary spending limit of $25 excluding stamps and phone credits.4eCFR. 28 CFR Part 545 Subpart B – Inmate Financial Responsibility Program The BOP also factors participation into parole and good-conduct assessments.

How the Money Is Held and Spent

Inmates cannot possess cash. Every dollar earned or received goes into an individual commissary account maintained by the Bureau of Prisons.5eCFR. 28 CFR Part 506 – Inmate Commissary Account The account works like a restricted bank account. Wages and outside deposits flow in, deductions are applied automatically, and whatever remains can be spent at the prison commissary.

The commissary is an in-house store for snacks, hygiene products, writing supplies, stamps, phone credits, and sometimes small electronics like radios. Each facility sets a spending cap. Inmates on the stricter penalty limit for declining the Financial Responsibility Program are held to $25 per month.4eCFR. 28 CFR Part 545 Subpart B – Inmate Financial Responsibility Program

Money from Family and Friends

Because wages alone rarely cover commissary needs, deposits from outside are often the larger source of spending money. Federal facilities accept three methods: electronically through MoneyGram, electronically through Western Union, or by mail using a U.S. Postal Service money order. The sender needs the inmate’s eight-digit register number, full committed name, and the specific routing codes provided by the BOP.6Federal Bureau of Prisons. Community Ties – Section: Sending Money

Personal checks mailed directly to the BOP are returned to the sender.5eCFR. 28 CFR Part 506 – Inmate Commissary Account Cash can fund a MoneyGram or Western Union transfer at a walk-in location, but cash cannot be mailed to the prison. The BOP places full responsibility on the sender for getting the register number right, and a wrong number can be difficult or impossible to recover. Third-party transfer fees typically run a few dollars per transaction, which adds up for families sending small amounts regularly. State prisons use their own approved vendors, but the pattern is the same: no personal checks, no cash by mail, everything routed through the institution’s account system.

Income the Prison Won’t Let You Earn

Some obvious ways to bring in money are off the table. Federal facilities prohibit inmates from conducting commercial activity, and any self-employment arrangement would need institutional approval that is rarely granted. Inmates can still hold property rights they had before incarceration, including copyrights or patents, but actively managing or monetizing them from inside runs into restrictions on communications, internet access, and financial transactions. Creative work like writing or art is sometimes sold on an inmate’s behalf by someone on the outside, but those arrangements operate in a gray area governed by facility-level rules that vary widely.

Selling the story of your crime is separately restricted. Under 18 U.S.C. § 3681, a person convicted of a federal offense that caused physical harm can be ordered to forfeit proceeds from any contract to depict the crime in a book, movie, television production, or other media, or to express thoughts or opinions about it. Forfeited proceeds go to the Crime Victims Fund and sit in escrow for five years while victims can pursue judgments against them. Up to 20% can be used for the defendant’s legal representation on matters arising from the conviction, and anything left after five years is distributed as the court directs.7Office of the Law Revision Counsel. 18 U.S. Code 3681 – Order of Special Forfeiture About half the states have their own versions, commonly called Son of Sam laws.

What Happens to Benefits You Already Receive

Money coming in from outside benefit programs can also drop or stop.

Social Security retirement or disability benefits are suspended if you are convicted of a crime and confined for more than 30 continuous days. The suspension starts on the 31st day and lasts until release. Supplemental Security Income stops when you have been in a public institution for a full calendar month or more, and after 12 consecutive months the SSI case closes entirely, requiring a new application after release. Reinstatement on release is not automatic. If the prison has a prerelease agreement with SSA, contact can be initiated 90 days before the scheduled release date. Otherwise, the released person needs to call SSA at 1-800-772-1213 and bring release documents to a local office.8Social Security Administration. Benefits after Incarceration: What You Need To Know

Veterans receiving VA disability compensation face reductions under 38 U.S.C. § 5313 starting on the 61st day of incarceration for a felony conviction. A rating of 20% or higher is reduced to the 10% rate; a 10% rating is cut in half. Misdemeanor convictions do not trigger any reduction, and veterans on work release or living in halfway houses are exempt.9Office of the Law Revision Counsel. 38 USC 5313 – Limitation on Payment of Compensation and Dependency and Indemnity Compensation to Persons Incarcerated for Conviction of a Felony Dependents can apply to have all or part of the withheld amount apportioned to them based on need, though the apportionment is not automatic and dependents incarcerated for a felony are not eligible. Full compensation can be reinstated after release, and the veteran should notify VA within 30 days of an anticipated release date.10Department of Veterans Affairs. Justice Involved Veterans

What Work Is Worth Beyond the Wages

For many federal inmates, the most valuable thing earned through work is time, not money. Under 18 U.S.C. § 3624(b) as amended by the First Step Act of 2018, federal inmates can earn up to 54 days of good time credit for each year of the imposed sentence. Over a 10-year sentence, that adds up to 540 days.11Federal Bureau of Prisons. First Step Act Overview

Successful completion of approved programming can also earn separate time credits toward prerelease custody, meaning placement in a halfway house or home confinement before the end of a sentence.11Federal Bureau of Prisons. First Step Act Overview Not everyone qualifies. Inmates convicted of violent offenses, terrorism, sex offenses, or high-level drug crimes are generally excluded from earning these credits, though they may still receive other benefits for completing programming.

Earlier release means earlier access to real wages in the free labor market. Measured that way, the time credits earned alongside work often outweigh the pennies-per-hour the work itself pays.