Compensation Rate
Benefit & Wage Terms
Definition
The percentage of your average weekly wage that workers' comp actually pays — commonly around two-thirds, though the exact rate varies by state.
Why It Matters
This percentage, applied to your AWW and capped at your state's maximum, is the core formula behind every benefit calculation.
How This Connects to Your Estimate
This is literally the "wage replacement rate" number shown at the top of every state's page on this site — it's the first input in the calculation, before anything about your specific injury even comes into play. A few states don't use a single fixed rate at all: Washington's varies by marital and dependent status (60%–75%), which is why that state shows a wider range than most.
Related Terms
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