How Are Workers’ Comp Weekly Benefits Calculated? The Formula
By Mason ArnaoPublished
By Mason ArnaoReviewed by Mason Arnao
If you’re wondering how are workers comp weekly benefits calculated, the short answer is that the insurer takes your average weekly wage from before the injury, multiplies it by a percentage set by law, and then keeps the result within the minimum and maximum that applied on your date of injury. You can check whether your check is right by asking for the wage figures the insurer used, redoing that math yourself, and comparing your result with your state’s published rates. For the filing steps and deadlines, see our workers’ compensation claim guide; if a doctor dispute is part of your case, read who gets to choose your treating doctor, and for a disputed medical exam see the independent medical exam guide.
Here’s what that looks like in practice. In New York, the formula is two-thirds of your average weekly wage times your degree of disability, so a totally disabled worker who averaged $500 a week would receive $333.33. Each piece of the formula can vary by state. Texas, for example, averages your pay over the 13 weeks before the injury, including overtime and some non-cash benefits. Caps also differ: California’s 2026 temporary total disability maximum is $1,764.11 per week.
This guide walks through each step in order. It covers how your average weekly wage is figured, what percentage gets applied, and how state minimums and maximums work. It also explains the math when you’re back at work but earning less, and how federal employees’ compensation differs. Finally, it shows what you can do if your comp rate looks wrong.
The short answer: your average weekly wage times a set percentage, kept within limits
Your weekly workers’ comp check usually comes from a simple formula: your average weekly wage before the injury, multiplied by a set benefit percentage. If the result falls below a minimum, it is raised to that minimum. If it goes above a maximum, it is capped. The exact rules come from your state’s law, or from federal law if you are a federal employee.
Here is how the three pieces fit together:
- Average weekly wage (AWW). Most systems start with what you typically earned per week before you were hurt. How that average is figured varies by state.
- The benefit percentage. A set share of your AWW is applied. In New York, the Workers’ Compensation Board’s lost wage formula is two-thirds of your AWW multiplied by your percentage of disability. For federal workers, the FECA Procedure Manual sets a basic rate of 66 2/3%, or 75% if you have eligible dependents.
- Minimums and maximums. Your state may raise a low result or cap a high one. California’s 2026 temporary total disability rates, for example, run from a minimum of $264.61 to a maximum of $1,764.11 per week, with the limits tied to increases in the State Average Weekly Wage.
| System | Percentage applied | Limits mentioned in this article |
|---|---|---|
| New York | Two-thirds of AWW × % of disability | Minimum $384.45 for injuries from 7/1/2026 to 6/30/2027 |
| California | Covered in Step 2 | $264.61 minimum, $1,764.11 maximum per week (2026) |
| Federal (FECA) | 66 2/3%, or 75% with eligible dependents | Covered in the FECA section |
One important note before you start running numbers: workers’ comp rules are not the same in every state. Each figure in this guide belongs to a specific state or to FECA. None of them is a national rule. Use them to understand how the formula works, then check the rules that apply where you were injured.
Step 1: How your average weekly wage is figured
Your average weekly wage (often shortened to AWW) is the number every other part of the formula is built on. The benefit percentage, the minimums, and the maximums are all applied to it. If this one figure is off, every weekly check you receive will be off too.
Texas: the 13-week method
The Texas Department of Insurance explains AWW as the average amount your employer paid you each week during the 13 weeks before your injury. The basic method works like this:
- Add up your pay for those 13 weeks, including overtime or other special pay.
- Divide the total by 13.
A few details can change the result:
- Non-cash benefits can count. Benefits your employer pays for, such as health insurance, a car allowance, or dry cleaning, may be included in your AWW.
- If you hadn’t worked 13 weeks yet, your AWW may be based on what a worker in the same or a similar job earned.
- If you have a second job, those wages can be added when the injury also keeps you from working there.
TDI’s own worked example arrives at an AWW of $906.23 per week. Treat that only as an illustration of the math. Your figure depends entirely on your own pay records.
New York: the previous year
In New York, the Workers’ Compensation Board bases your weekly benefit on your average weekly wage for the previous year. That means a longer stretch of earnings goes into the calculation than in Texas.
What to do now
Rules vary by state, but the takeaway is the same everywhere: a wrong wage base means wrong checks. Start gathering the records that show what you actually earned:
- Pay stubs covering the period your state uses
- Records of overtime, bonuses, or other special pay
- Proof of employer-paid benefits, such as health insurance or a car allowance
- Pay records from any second job
With these in hand, you can compare your own numbers against the wage figure the insurer uses once your benefits start.
Step 2: The benefit percentage applied to your wage
Once your average weekly wage is set, a percentage turns it into your weekly check. Many systems use about two-thirds, but the exact percentage, and what else goes into the formula, depends on where you work and who your employer is.
New York: two-thirds, adjusted for how disabled you are
New York uses a three-part formula: 2/3 × your average weekly wage × your percentage of disability. Your doctor’s medical evidence determines that disability percentage. The state’s own worked example uses a worker who earned $500 a week:
| Disability level | Calculation | Weekly benefit |
|---|---|---|
| 100% (total) | 2/3 × $500 × 100% | $333.33 |
| 50% (partial) | 2/3 × $500 × 50% | $166.67 |
If your disability rating changes, your weekly amount can change with it, even though your wage stays the same.
California: based on weekly earnings, within yearly limits
California also figures temporary total disability (TTD) from your weekly earnings. The state then sets a minimum and maximum weekly TTD amount each year. Those limits can raise or cap your check, and the next section explains how they work.
Federal employees: 66 2/3% or 75%
Under the Federal Employees’ Compensation Act, the basic compensation rate is 66 2/3% of your pay (5 U.S.C. 8105), rising to 75% if you have at least one eligible dependent (5 U.S.C. 8110). Section 5 covers this in more detail.
Don’t assume your state uses two-thirds. Percentages and formulas differ from state to state. Before relying on any number, look up the formula on your state workers’ compensation agency’s website or ask the agency directly.
Step 3: State minimums and maximums (and why your date of injury matters)
After the percentage is applied, your state’s weekly floor and cap can change the result. If the formula lands below the minimum or above the maximum, the limit can control what you’re actually paid. Which limits apply depends on when you were injured, not when you file or when payments start.
California
For 2026 injuries, California’s temporary total disability rates are a minimum of $264.61 and a maximum of $1,764.11 per week, according to the Division of Workers’ Compensation. Under Labor Code 4453(a)(10), these limits are tied to increases in the State Average Weekly Wage, so they can change from year to year.
New York
New York’s limits follow a July-to-June cycle. According to the New York Workers’ Compensation Board’s lost wage benefits guidance:
- The minimum weekly benefit is $384.45 for injuries from July 1, 2026, through June 30, 2027. That figure is one-fifth of the New York State Average Weekly Wage.
- The maximum adjusts every July 1, based on the prior year’s state average weekly wage.
- Your rate is set by your date of injury. It does not go up when a new maximum takes effect later.
Why higher earners may get less than the full percentage
The cap matters most if you earned a higher wage. Suppose two-thirds of your average weekly wage works out to more than the maximum in effect on your injury date. In that case, your check is limited to the maximum. The result is a benefit that replaces a smaller share of your pay than the formula alone suggests.
When you compare your payment to the formula, check two things: your injury date, and the limits in effect on that date.
If you’re back at work but earning less: partial disability math
If your injury lets you work but not at full capacity, you can still receive weekly benefits. They are usually smaller than total disability payments because they make up only part of the gap. New York shows how this works.
Two ways New York figures partial benefits
Under the New York Workers’ Compensation Board’s lost wage rules, the weekly amount for partial disability is generally calculated in one of two ways:
- Reduced earnings: If you’re working but earning less because of your injury, you may receive two-thirds of the difference between your current pay and your pre-injury average weekly wage.
- Degree of disability: The formula is two-thirds of your average weekly wage, multiplied by your percentage of disability.
| Average weekly wage | Degree of disability | Weekly benefit |
|---|---|---|
| $500 | 100% (total) | $333.33 |
| $500 | 50% (partial) | $166.67 |
The examples above use a made-up $500 average weekly wage and the two-thirds formula described by the New York Workers’ Compensation Board; your own figures will differ.
In the 50% example, the worker’s benefit is half of what a totally disabled worker with the same wage would receive.
Why your doctor’s reports matter so much
Your percentage of disability is based on medical evidence, so what your doctor writes directly affects your check. A report that describes your limits clearly, such as how long you can stand, lift or work each day, gives a more accurate picture than a vague note. If a report seems to understate your restrictions, ask your doctor about it.
Keep the insurer informed about your pay
When you return to light duty, pick up extra hours or change jobs, tell the insurer what you’re earning. Because partial benefits depend on how much you earn now, accurate reporting keeps your payments correct. It can also help you avoid an overpayment you might have to pay back later. Keep copies of your pay stubs so you can check the math yourself.
Federal employees: how FECA figures weekly compensation
If you work for the federal government, your wage-loss benefits come from the Federal Employees’ Compensation Act (FECA), not your state’s workers’ comp law. FECA uses only two percentages. Which one applies to you depends on whether you have an eligible dependent.
The Department of Labor’s FECA Procedure Manual section on determining pay rates sets out the two rates:
- Basic rate: 66 2/3% of your pay rate, under 5 U.S.C. 8105, if you have no eligible dependents.
- Augmented rate: 75% of your pay rate, under 5 U.S.C. 8110, if you have one or more eligible dependents.
Who counts as a dependent
A spouse can count as a dependent if they live with you or if you regularly contribute to their support. If you are being paid the basic rate but believe you have a qualifying dependent, ask OWCP whether the augmented rate should apply.
When your rate changes
The augmented rate lasts only while you have an eligible dependent. If you lose that dependent, your rate drops back to 66 2/3%. This can happen when a spouse dies, when you divorce, or when a child ages out. The same DOL manual says that if you don’t give notice of the change within 90 days, you can be found at fault for the overpayment that results.
The practical takeaway is to tell OWCP promptly, in writing, whenever your dependents change, and to keep a copy of what you sent. If your claim isn’t started yet, our guide on how federal employees file a FECA injury claim walks through the forms and first steps.
How to check your comp rate, and what to do if it looks wrong
You can usually check your weekly rate yourself with your pay records and a calculator. If your number doesn’t match the insurer’s, ask in writing how they reached theirs, and contact your state workers’ comp agency with any questions.
1. Gather the right pay records
- Pay stubs for your state’s look-back period. In Texas, that period is the 13 weeks before your injury, including overtime and special pay. Texas also counts certain employer-paid benefits, such as health insurance or a car allowance.
- Records from any second job. Texas has rules for workers with more than one employer, so don’t leave other wages out.
- Your earnings history. Other states may look back over a different period, so confirm which weeks or months your state uses.
2. Redo the math
- Figure your average weekly wage (AWW) from those records.
- Multiply it by your state’s benefit percentage. New York, for example, uses two-thirds of your AWW, based on your earnings from the previous year.
- Compare the result to your state’s minimum and maximum for your date of injury. In New York, your rate is set by your date of injury and does not go up when a new maximum takes effect later.
3. Ask questions in writing
Write to the insurer and ask for its calculation: which weeks it used, which wages it counted, and whether it included overtime, other jobs, or benefits. Keep copies of everything you send and receive. Your state workers’ comp agency can also explain the rules that apply to your claim.
4. If the rate isn’t corrected
If an informal request doesn’t fix the problem, our guide on how to file a workers’ comp claim and dispute a decision walks through the formal steps. If your injury may keep you out of work for a long time, you can also read about SSDI eligibility, evidence, and appeals. SSDI is a separate federal program with its own rules.
Related questions are covered in whether to settle or keep a workers’ comp claim open and what to do if you are fired after filing a workers’ comp claim.
If you’d like help sorting out your options, Legal Lawsuit can help you understand them. This article is general information, not legal advice, and outcomes vary from case to case.
Keep researching on Legal Lawsuit
Frequently asked questions
Does overtime count toward my average weekly wage?
In Texas, yes. The Texas Department of Insurance’s guide to average weekly wage calculations says your average weekly wage is your pay over the 13 weeks before your injury, including overtime and other special pay, divided by 13. It can also include non-cash benefits such as health insurance, a car allowance or dry cleaning. If you work in another state, check its workers’ compensation agency’s rules.
If I had two jobs, can both count toward my workers’ comp rate?
In Texas, they can. The Texas Department of Insurance guidance linked above includes a method for workers who held more than one job when they were injured. That means wages from a second employer may be part of how your average weekly wage is figured, not just pay from the job where you got hurt.
Gather pay stubs from every job you held in the 13 weeks before your injury. Then ask the insurance carrier which wages it used to set your rate. Your state’s workers’ compensation agency can explain how it handles multiple jobs.
Will my weekly benefit go up when the state raises its maximum?
Generally, no, at least in New York. The New York Workers’ Compensation Board’s lost wage benefits page explains that your rate is set by your date of injury. It does not rise when a new, higher maximum takes effect. The maximum adjusts each July 1 based on the New York State average weekly wage, so a later increase applies to newer injuries rather than your existing claim.
What are California’s minimum and maximum temporary disability rates for 2026?
California’s Division of Workers’ Compensation set the 2026 temporary total disability rates at a minimum of $264.61 per week and a maximum of $1,764.11 per week. Under Labor Code section 4453(a)(10), these limits are tied to increases in the State Average Weekly Wage, so they can change from year to year. If your check seems to fall outside these figures, ask the claims administrator to show you how it calculated your rate.
Do federal employees get a higher rate if they have dependents?
Yes. According to the FECA Procedure Manual on determining pay rates, the basic compensation rate is 66 2/3 percent of your pay rate under 5 U.S.C. 8105. If you have at least one eligible dependent, the rate increases to 75 percent under 5 U.S.C. 8110. The manual sets specific criteria for who qualifies, including when a spouse counts as a dependent. Tell OWCP about your dependents and keep supporting records ready.
Sources
- DWC announces temporary total disability rates for 2026 (Release 2025-116) · California Department of Industrial Relations, Division of Workers’ Compensation · 2025-11-21
- Workers’ Compensation Lost Wage Benefits · New York State Workers’ Compensation Board
- Income benefits: Average weekly wage calculations · Texas Department of Insurance, Division of Workers’ Compensation
- FECA Procedure Manual, Part 2 – Claims (Compensation Claims / Determining Pay Rates) · U.S. Department of Labor, Office of Workers’ Compensation Programs
This article is general information, not legal advice. Laws and deadlines vary by state and change over time; check the linked sources or speak with a licensed attorney about your situation.
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