How Workers Comp Weekly Benefits Are Calculated
The math is more mechanical than it looks — three numbers determine almost every weekly benefit calculation.
The Basic Formula
Most states calculate your weekly benefit the same general way: take your average weekly wage (AWW), multiply it by your state's compensation rate (commonly around two-thirds, though this varies), and cap the result at your state's maximum weekly benefit.
Average Weekly Wage (AWW)
This is usually calculated from a set period before your injury — often the prior 13, 26, or 52 weeks, depending on the state. Errors here are common, especially for workers with variable hours, overtime, multiple jobs, or recent raises — all of which can be miscounted if the calculation isn't done carefully.
Compensation Rate
Most states use roughly 66.67% (two-thirds) of your AWW, but this isn't universal — some states use a different percentage, and a handful calculate the rate against after-tax or "spendable" earnings instead of gross wages, which changes the math meaningfully.
The Maximum and Minimum Caps
Every state sets a maximum weekly benefit, recalculated annually based on that state's average wage data — this is why high earners are often surprised their benefit is capped well below two-thirds of their real income. States also set a minimum, protecting lower-wage workers from an unreasonably small benefit.
Check the Actual Numbers for Your State
Because the compensation rate, caps, and AWW calculation method all vary by state — and a few states use meaningfully different formulas entirely — the general math above is a starting point, not your actual number. See your state's page in the settlement estimator for the real figures.
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