Workers Compensation Calculator

Workers’ compensation is a state-mandated insurance program that provides wage replacement and medical benefits to employees who are injured or become ill as a direct result of their job. In exchange, employees generally give up the right to sue their employer for negligence.

Standard weekly benefit formula:

Weekly Benefit = Average Weekly Wage (AWW) × Benefit Rate

Benefit rate: Most states use two-thirds (66.67%) of the worker’s average weekly wage, capped at the state maximum.

Average Weekly Wage (AWW) calculation:

AWW = Total Wages in Prior 52 Weeks / 52

Some states use the prior 13 weeks or a different window, so check your own state rules.

Benefit types by disability classification:

State minimums and maximums:

• States set maximum weekly benefits: typically 100% to 150% of the state’s average weekly wage
• States also set minimum weekly benefits: typically 20% to 33% of the state average weekly wage
• High earners may receive less than 66.67% of their actual wage due to the cap

Worked example: A warehouse worker in Ohio earns $800/week average over the prior 52 weeks. Injury: back strain, temporary total disability, 8 weeks off work.

• AWW = $800
• Weekly benefit = $800 × 2/3 = $533.33/week
• Ohio’s maximum weekly benefit is around $1,200, so the cap does not bite here
• 8-week total benefit = $4,266.67

Against $6,400 of pre-injury wages that is a $2,133 shortfall on paper. In practice it is smaller, because the benefit is not taxable and the wages were. On a 22% effective rate the $6,400 would have netted about $4,992, so two thirds tax-free lands within a few hundred dollars of normal take-home.

The cap is what catches high earners. Take the same eight weeks at a $3,000 weekly wage. Two thirds is $2,000, but the Ohio maximum of roughly $1,200 applies, so the real replacement rate is 40% rather than 66.67%. Enter your state’s maximum above or the estimate will overstate what you receive.

Medical benefits, which are separate from wage replacement: Workers’ comp covers all reasonable and necessary medical treatment related to the injury:

• Doctor visits, specialist referrals
• Surgery and hospitalization
• Physical therapy and rehabilitation
• Prescription medications
• Medical devices (braces, crutches, wheelchairs)
• All at no cost to the employee: no deductibles, no copays

Death benefits: If a worker dies from a job-related injury, most states provide:

• Burial expenses (typically $5,000–$15,000)
• Ongoing wage replacement to surviving spouse and dependent children (often 66.67% of AWW)

Disclaimer: Workers’ compensation laws vary significantly by state, and benefit calculations can be complex. This calculator provides an estimate for informational purposes only and does not constitute legal advice. Consult a workers’ compensation attorney for your specific situation.