Workers' Compensation Pay: How the Weekly Benefit Is Estimated

Workers' Compensation Pay: How the Weekly Benefit Is Estimated

A work injury creates two worries at once: your health and your paycheck. Most states pay a weekly benefit while you cannot work, and the formula is simpler than people expect. The Workers' Compensation Weekly Benefit Estimator turns it into numbers, using the rules of your state.

The general rule

For temporary total disability, most states pay about two-thirds (66.67 percent) of the worker's average weekly wage. Some pay a different percentage, and every state sets a minimum and a maximum weekly benefit. A high earner will reach the maximum, and a low earner may receive a minimum, so the cap often decides the result.

Average weekly wage

The average weekly wage is usually the earnings over a period before the injury divided by the number of weeks in that period, often the previous 13 weeks, or 52 weeks in some states. Overtime, commissions and the cash value of some benefits can be included. Use gross wages, before tax.

The waiting period

Most states have a waiting period, commonly three days, during which no benefit is paid. If the disability lasts longer than a set period, commonly 14 days, the waiting days are paid retroactively. These two numbers matter for short absences, so you enter them yourself.

Why this tool has blank state fields

The maximum and minimum weekly rates change every year and differ widely among states. Rather than show numbers that may be out of date, the tool asks for the maximum, the minimum and the percentage from your state's workers' compensation agency, which usually publishes them on one page.

How to use it

1. Enter the earnings in the period and the number of weeks.
2. Enter your state's percentage, maximum and minimum weekly rate.
3. Enter the waiting period and the retroactive period.
4. Enter the number of days you expect to be off work.

The results show the average weekly wage, the rate before the cap, whether the cap or minimum applied, the weekly benefit, the monthly equivalent, the share of your previous wage that it replaces, and an estimate of the total paid for the days off.

A worked example

A worker earned $13,000 in 13 weeks: the average weekly wage is $1,000. At two-thirds the rate is $666.70, below a state maximum of $1,300, so the weekly benefit is $666.70, about $2,889 a month, replacing 66.7 percent of the wage. If the worker is off for 10 days, the waiting period is 3 days and the retroactive rule starts at 14 days, only the 7 days after the waiting period are paid, about $666.70 for one week. If the absence were 14 days, the waiting days would be added.

Other benefits to know about

Medical care for the injury is paid separately and is usually unlimited in time. Permanent partial disability, permanent total disability, vocational rehabilitation and death benefits follow other formulas. Many states pay benefits tax-free.

Practical advice

Report the injury to your employer right away, in writing, and keep copies. See a doctor on your employer's approved list if your state requires it. If your claim is denied or the benefit seems wrong, contact the state agency or a lawyer. This estimator is for understanding only and does not decide any claim.

Quick questions

Can I be paid while the claim is under review? Rules vary. Some states require the insurer to start paying within a set number of days; others wait for a decision.

Can I work part time while on benefits? Often you can, and the benefit becomes temporary partial disability, usually two-thirds of the difference between your old and new wages.

How long do benefits last? Each state sets a maximum number of weeks or a dollar limit for temporary benefits.