The Social Security Act provides disability benefits to those insured who are prevented from working by a severe medically determinable impairment. Under the Act, psychiatric impairment is assessed on the basis of demonstrable clinical manifestations including mental status examination and, where needed, standardized psychological tests yielding quantifiable results. The total function of the person in daily living, both in the social and work spheres, is taken into consideration in the assessment process. Efforts at obtaining further progress in the classification of psychiatric concepts and arriving at greater objectivity in psychiatric decision-making are described.