If you’re injured at work, understanding how your workers’ compensation benefits are calculated is essential. The amount you receive depends on several factors, and it is important for all California workers to understand them.
Average weekly wage and the 2/3 rule
Workers’ compensation benefits primarily depend on your average weekly wage (AWW). To determine your AWW, calculate the amount you earned in the 52 weeks before your injury. This includes your regular wages, overtime, and bonuses. Then, workers’ compensation will pay you 2/3 of your AWW, up to a maximum set by the state.
For example, if your AWW is $1,000, you’ll receive $666 per week in benefits (2/3 of $1,000). However, if your earnings exceed the state’s cap, the amount you receive may be lower.
Temporary disability and permanent disability benefits
Once your doctor confirms you’re temporarily unable to work, you’ll begin receiving temporary disability benefits. These benefits replace a portion of your lost wages and continue until you can return to work or reach maximum medical improvement.
If you have a long-term or permanent disability, your benefits may change. Permanent disability benefits depend on your injury’s severity, the degree of your disability, and how it impacts your ability to work. California uses a rating system established by the Workers’ Compensation Rating Bureau to calculate these payments.
Additional benefits
In some cases, you might qualify for extra benefits such as mileage reimbursement for medical appointments, vocational rehabilitation, or life pension payments if your injury is severe and permanent.
Understanding how these benefits work helps you plan for the future after an injury.
