Workman's Compensation Calculation
Estimate potential weekly benefits based on state averages and your average weekly wage.
Typically 66.67% in most states, but check your state's specific laws.
This is the highest weekly benefit allowed by your state. Check your state's official workers' comp website.
Estimated Weekly Benefit:
How is Workman's Compensation Calculated?
Workman's compensation, also known as workers' compensation, is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer for negligence. The calculation of these benefits, particularly the temporary total disability (TTD) benefits, typically involves a standardized formula influenced by the injured worker's average weekly wage (AWW) and state-specific regulations.
Understanding the Key Components:
- Average Weekly Wage (AWW): This is the foundation of your workers' comp benefit calculation. It's generally determined by averaging your earnings over a specific period before your injury, often the 13 weeks preceding the accident. The calculation can include overtime, bonuses, and other forms of compensation, though methods vary by state.
- State Statutory Benefit Percentage: Most states mandate that workers' compensation benefits replace a certain percentage of your AWW. This percentage is set by state law and commonly falls around two-thirds (66.67%), but can vary.
- State Maximum Weekly Benefit: Each state imposes a cap on the maximum amount an injured worker can receive weekly, regardless of their AWW. This maximum is usually tied to the state's average weekly wage and is adjusted periodically.
The Calculation Process:
The estimated weekly temporary total disability (TTD) benefit is generally calculated as follows:
- Calculate a Preliminary Benefit Amount: Multiply your Average Weekly Wage (AWW) by the State's Statutory Benefit Percentage.
Formula: Preliminary Benefit = AWW × (State Benefit Percentage / 100) - Apply State Maximum: Compare the Preliminary Benefit Amount to the State's Maximum Weekly Benefit. The amount you are entitled to is the *lesser* of these two figures.
Formula: Estimated Weekly Benefit = MIN(Preliminary Benefit, State Maximum Weekly Benefit)
Example Calculation:
Let's consider an example scenario:
- Worker's Average Weekly Wage (AWW): $800
- State's Statutory Benefit Percentage: 66.67%
- State's Maximum Weekly Benefit: $1,200
Step 1: Calculate Preliminary Benefit
$800 (AWW) × 0.6667 (Benefit Percentage) = $533.36
Step 2: Apply State Maximum
Compare $533.36 to $1,200 (State Maximum). Since $533.36 is less than $1,200, the estimated weekly benefit is $533.36.
Another Example: Higher Wage Earner
- Worker's Average Weekly Wage (AWW): $2,000
- State's Statutory Benefit Percentage: 66.67%
- State's Maximum Weekly Benefit: $1,200
Step 1: Calculate Preliminary Benefit
$2,000 (AWW) × 0.6667 (Benefit Percentage) = $1,333.40
Step 2: Apply State Maximum
Compare $1,333.40 to $1,200 (State Maximum). Since $1,333.40 is greater than $1,200, the estimated weekly benefit is capped at $1,200.
Important Considerations:
- This calculator provides an estimation for temporary total disability (TTD) benefits. Actual benefits may differ based on specific state laws, your individual circumstances, how your AWW is calculated by the insurance carrier, and whether you are eligible for other types of benefits (e.g., temporary partial disability, permanent disability).
- Always consult your state's official workers' compensation agency or a legal professional for precise information and advice tailored to your situation.
- The percentage and maximum weekly benefit amounts can change annually.