Quick presets — common situations:
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Sources & Methodology
- 📖 U.S. Department of Labor — Workers Compensation Benefits Overview
- 📖 NCCI — Workers Compensation Benefit Adequacy Research
TTD: Weekly Benefit = (Annual Salary ÷ 52) × Benefit Rate, capped at state maximum. PPD: Total = Weekly Rate × (Disability Rating%) × Benefit Weeks. Settlement: Economic damages + disability component at 25% discount for claim resolution.
How Workers Compensation Benefits Are Calculated
Workers comp isn't one flat payment — it's a system with several benefit types depending on how seriously you were hurt and whether you can return to work. Most injured workers deal with temporary disability first, then transition to permanent disability if the injury doesn't fully heal.
Temporary Total Disability (TTD) — The Core Benefit
TTD pays when you can't work at all while recovering. The formula is the same in most states:
Example: You earn $60,000/year ($1,154/week AWW). Your TTD is $1,154 × 66.7% = $770/week. If your state max is $1,000, you get $770 since you're under the cap. At $90,000/year ($1,731 AWW), you'd hit the cap and receive the state maximum instead.
Permanent Partial Disability (PPD)
Once you reach maximum medical improvement, a doctor assigns a disability rating — a percentage reflecting permanent function lost. That rating drives your PPD:
States assign a number of benefit weeks to each body part. A 10% rating on a 200-week scheduled injury = 20 weeks of benefits. This varies significantly by state — identical injuries can result in very different payouts depending on where you live.
What Counts as Average Weekly Wage
Your AWW is your total earnings in the 52 weeks before injury divided by 52. In most states it includes overtime and bonuses — not just base pay. If you worked multiple jobs, some states add all wages together. Getting this number right matters: every other calculation is built on it.
| Benefit Type | When It Applies | Typical Duration |
|---|---|---|
| Temporary Total Disability (TTD) | Cannot work at all during recovery | Until return to work or MMI |
| Temporary Partial Disability (TPD) | Light duty at reduced pay | Until full duty or MMI |
| Permanent Partial Disability (PPD) | Lasting partial impairment after MMI | Scheduled weeks by body part |
| Permanent Total Disability (PTD) | Cannot return to any work permanently | Lifetime in some states |
| Death Benefits | Fatality on the job | Dependents receive ongoing payments |
Workers Comp Benefits by State — What the Numbers Look Like
State weekly maximums vary from around $700 to over $2,000. High earners often hit the cap and receive an effective rate well below 66.7%. Minimum wage workers are protected by a benefit floor.
| State | Max Weekly TTD (2026) | Benefit Rate |
|---|---|---|
| California | $1,619 | 66.7% of AWW |
| New York | $1,145 | 66.7% of AWW |
| Texas | $1,114 | 70% of AWW |
| Florida | $1,197 | 66.7% of AWW |
| Illinois | $1,897 | 66.7% of AWW |
| Pennsylvania | $1,273 | 66.7% of AWW |
| Ohio | $1,249 | 72% of AWW |
| Michigan | $1,144 | 80% of AWW (to max) |
Settlement vs. Ongoing Benefits — Which Is Better?
A lump-sum settlement closes your claim permanently. You get certainty now but give up future medical coverage and ongoing payments. For minor injuries with predictable recovery, settling can make sense. For serious injuries with ongoing treatment, ongoing benefits are usually worth more.
What to Do If Your Claim Is Denied
About 7% of workers comp claims are initially denied. Common reasons: employer disputes the injury happened at work, claim filed late, no witnesses. You have the right to appeal — most denied claims that go through the appeals process are eventually approved, especially with attorney representation.