WorkersYour average weekly wage, or AWW, is the number that drives almost every wage-replacement payment in a workers' compensation claim. Before any percentage, cap or settlement formula is applied, the insurer or state agency first decides what you were earning per week before the injury. If that starting figure is too low, every benefit built on it is too low as well. This guide explains how AWW is usually determined, which kinds of pay tend to count, and how to estimate your own figure with the estimator below.
The estimator is a planning tool, not a legal determination. It uses only the numbers you type in, applies a benefit rate that you can change, and applies a weekly maximum only if you enter one. Look-back periods, included pay and caps are set by state law, so confirm your state's rules with its workers' compensation agency.
Average weekly wage and weekly benefit estimator
Use gross amounts (before taxes) from your pay stubs for the weeks before your injury. Nothing you enter leaves your browser.
Estimate only. The typical general rule is two-thirds (66⅔%) of AWW, but some states use a different rate, and every state sets its own maximum. See the main settlement calculator or your state guide for state-specific details.
How average weekly wage is determined
Most states start from the same basic idea: add up your gross earnings over a period before the injury and divide by the number of weeks. The look-back period is where states diverge. The ends of the range most often seen are about 13 weeks and about 52 weeks, and some states use other windows or let the agency choose a fairer method when the standard one does not fit. Common approaches include:
- Short look-back average. Gross earnings over the weeks right before the injury, often 13, divided by the number of weeks. It reflects recent raises and overtime but can be skewed by an unusually busy or slow stretch.
- Year-long average. Total earnings over the prior year divided by 52, or by the weeks actually worked. It smooths out seasonal swings.
- Hourly rate method. Your hourly rate multiplied by your usual weekly hours, sometimes used when pay is steady or you were recently hired.
- Alternative methods. For new, seasonal or irregular workers, an agency may use the earnings of comparable employees or another method meant to reflect what you could fairly be expected to earn.
Because the method matters, ask which look-back period applies in your state and which weeks were used. Weeks of unpaid leave, a prior injury or reduced hours can pull an average down, and in some states those weeks can be excluded or adjusted. Whether that applies to you is a question for your state agency or an attorney.
What counts as wages and what usually does not
The legal definition of wages is state-specific, so use this table as a starting checklist rather than an answer.
| Type of pay | Usually counted? | What to know |
|---|---|---|
| Base wages or salary | Yes | Gross pay before taxes and deductions, not take-home pay. |
| Overtime | Usually | Typically averaged in over the look-back period, so regular overtime raises AWW. |
| Bonuses and commissions | Often | Regular, earned pay is more likely to count than a one-time discretionary bonus. |
| Tips | Often | Many states count tips you can document. Keep records of what you actually received. |
| Second job | Varies | Some states include concurrent employment, others limit AWW to the job where you were hurt. |
| Employer-paid benefits | Varies | In some states the value of benefits such as health coverage is added if the employer stops paying for them. |
| Expense reimbursements | Usually not | Money repaid for costs you incurred, such as mileage, is generally not earnings. |
A few states also treat the benefit rate differently. Michigan, for example, bases the rate on after-tax wages, as explained in our Michigan guide.
A hypothetical example
Hypothetical scenario, not a real case or a specific state's rules
Suppose a worker earned $11,700 in regular wages and $1,300 in overtime over the 13 weeks before an injury. The total is $13,000, and dividing by 13 weeks gives an AWW of $1,000. At two-thirds, the weekly benefit would be about $666.67, assuming the state maximum is higher than that.
Now suppose the insurer leaves out the overtime and uses only the $11,700. The AWW becomes $900 and the weekly benefit about $600. A $100 error in AWW becomes a gap of about $66.67 every week for as long as benefits are paid, which is why a missing line on a pay stub matters.
From average weekly wage to weekly benefit
Once AWW is set, the weekly benefit is generally the lesser of two numbers: a percentage of AWW and the state's maximum weekly benefit. Two-thirds is the common general rule, but it is not universal. New Jersey pays a higher percentage, Texas pays a higher percentage during the early weeks of temporary benefits, and Michigan uses an after-tax formula. See the New Jersey, Texas and Michigan guides for how those rules work.
The maximum matters most for higher earners. If your AWW is high enough that two-thirds exceeds the cap, you receive the cap, and your payment is a smaller share of your real wage. Caps are usually adjusted on a schedule set by each state, so always check the figure that applies to your injury date. For how this fits into a full claim, read our guide to how settlements are calculated, and see temporary total disability benefits explained for how long the weekly checks typically last.
How to check the AWW your insurer used
- Gather pay stubs, W-2s or payroll records covering at least the look-back period and, if possible, the full year before the injury.
- Ask the insurer or your employer for the wage calculation in writing, including the weeks and the amounts used.
- Add up your own gross earnings for those same weeks and compare the totals.
- Look for missing overtime, bonuses, tips and any second-job income that your state counts.
- If something is missing, send corrected records promptly and keep copies. Wage figures can often be corrected, but the process and deadlines vary by state.
- If the insurer disagrees, contact your state's workers' compensation agency or speak with a workers' compensation attorney.
Important: Do not assume the first figure is correct. Errors in AWW are common, and they affect every weekly payment and often the settlement value as well. Our guide to claim mistakes to avoid covers related pitfalls. Once you have a weekly rate, our PPD estimator shows how it feeds a permanent disability estimate, and how much a case may be worth explains where wage replacement fits.
Frequently asked questions
What is average weekly wage in workers' comp?
Average weekly wage (AWW) is an estimate of what you earned per week before your injury. States use it as the base for wage-replacement benefits, usually by applying a percentage such as two-thirds and then a weekly maximum.
How many weeks does workers' comp use to calculate AWW?
It depends on the state. Many use a look-back of roughly 13 weeks, others use a longer period such as 52 weeks, and some allow alternative methods for new or seasonal workers. Check your state agency for the rule that applies.
Does overtime count toward my average weekly wage?
Usually yes. Overtime you regularly earned in the look-back period is typically included in gross earnings, but the exact rule is set by state law, so confirm it with your state agency or an attorney.
Can a second job be included in my AWW?
In some states, yes, and in others the calculation is limited to the employer where you were injured. Gather pay records from both jobs, because they can matter if your state counts concurrent employment.
Is the estimator's result what I will actually receive?
Not necessarily. The estimator is a planning tool that uses only the numbers you enter. Your actual benefit depends on your state's rate, maximum, waiting period and how the insurer calculates your wage.
Turn your weekly wage into a full settlement estimate with our calculator.
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