How Workers' Comp Benefits Are Calculated
Workers' compensation weekly benefits are calculated using your average weekly wage (AWW) — your total earnings in the 52 weeks before your injury, divided by 52. Most states pay two-thirds (66.67%) of your AWW, subject to a state-set maximum weekly cap.
A handful of states use different formulas. Massachusetts pays 60% of AWW with the highest cap in the country. Michigan pays 80% of after-tax wages. Texas, where workers' comp is optional for employers, uses 70% of AWW. Always check your specific state's rules — the rate and cap together determine your weekly check.
When your AWW × the rate exceeds the state cap, your benefit is "capped" at the state maximum. Higher earners often see effective replacement rates well below two-thirds because of this cap.
Types of Workers' Comp Benefits
- TTD — Temporary Total Disability while you cannot work. TTD Calculator →
- TPD — Temporary Partial Disability for reduced-earnings light duty.
- PPD — Permanent Partial Disability after MMI with lasting impairment. PPD Calculator →
- PTD — Permanent Total Disability for workers unable to return to any work.
- Settlement — Lump-sum resolution of the entire claim. Settlement Calculator →
Your Average Weekly Wage Matters More Than You Think
AWW is the single biggest driver of your benefit check. By law, AWW includes overtime, bonuses, shift differentials, and earnings from any second job you held when injured. Insurance carriers frequently calculate AWW using only base hourly wages — which can underpay you by 15–30% per week for the entire life of your claim.
If you worked overtime regularly, had a side gig, or earned commissions, double-check that those earnings are included in the AWW the carrier used. A small AWW error compounds into thousands of dollars of unpaid benefits over a long claim.
Workers' Comp Calculator FAQ
How is my workers' comp weekly benefit calculated?+
Your AWW × your state's benefit rate (usually 66.67%), capped at your state's maximum weekly rate. California's 2026 cap is $1,764 per week; Georgia's is $675. Use the calculator above to see your state's exact calculation.
Does workers' comp cover 100% of my lost wages?+
No. Workers' comp typically replaces two-thirds (66.67%) of your pre-injury average weekly wage, subject to your state's maximum weekly cap. If your wage is very high, the cap may limit your benefit to less than two-thirds.
What is the difference between TTD and PPD?+
TTD (Temporary Total Disability) pays while you're completely unable to work during recovery. PPD (Permanent Partial Disability) pays a lump sum or weekly amount after you reach Maximum Medical Improvement (MMI) with lasting impairment.
How long does workers' comp pay weekly benefits?+
TTD continues until you return to work, are medically released to work, or reach Maximum Medical Improvement — which varies by injury from a few weeks to several years. Most states also set maximum week limits of 104 to 500 weeks.
Can I negotiate my workers' comp settlement?+
Yes. Most workers' comp claims resolve as a lump-sum settlement rather than ongoing weekly payments. Attorney-represented claimants typically receive 30–40% larger settlements. A free attorney consultation costs nothing — lawyers work on contingency.
What is Maximum Medical Improvement (MMI)?+
MMI is the point at which your treating physician determines your condition has stabilized and further treatment will no longer substantially improve your condition. At MMI, TTD benefits typically end and any permanent impairment rating is assigned for PPD calculation.
Does workers' comp cover pre-existing conditions?+
Yes, if your job aggravated, accelerated, or combined with a pre-existing condition to produce your current disability. The employer takes you as they find you — a pre-existing back condition that worsens due to a workplace injury is compensable in most states.