Understanding Average Weekly Wage

How Much Does Workers' Comp Pay Weekly?

Understanding Workers' Compensation Pay in Minnesota

In a Minnesota workers’ compensation case, the Average Weekly Wage (AWW) is used to determine a fair amount of compensation for any potential loss of future earnings resulting from a work-related injury.

The statewide average weekly wage is adjusted in October each year. As of October 1, 2023, the statewide AWW in Minnesota is $1,337 with the maximum weekly benefit being $1,363.74 and the minimum weekly benefit being $272.75.

What's Included in the AWW Calculation?

Moreover, if you had another job at the time of the injury, the lost earnings from that second employer will also be factored into the overall compensation.

What’s Not Included in the AWW Calculation?

AWW Calculations for Injured Workers

If you cannot work due to a work injury or earn less than your full wages because of it, you may be eligible for wage loss benefits. Your AWW determines these benefits, so it’s crucial to avoid any mistakes that could affect the amount you receive.

Here is how to calculate your AWW based on your employment status at the time of the injury:

Full-Time, Regularly Scheduled

The average weekly wage in these cases is typically calculated by adding your total gross earnings for the 26 weeks before the date of injury and dividing that amount by 26 weeks.

Part-Time or Irregularly Scheduled 

The average weekly wage in these cases is determined by calculating the Average Daily Wage (ADW). You can find this amount by adding the total gross earnings during the 26 weeks before the injury. Next, you’ll need to:

For example, if an employee earns an average of $100 per day and works an average of 2 days per week, the average weekly wage is $200.00. 

AWW for Special Employement

There are various types of unique employment situations, such as unpaid positions, jobs that pay with credits for schooling, or seasonal work. In these scenarios, employees may not be classified as full-time or part-time. Here’s how to calculate your AWW for the following special employment situations:

Why Getting It Right Matters for Your Case

In a workers’ compensation case, if the calculation of your AWW is incorrect, it can significantly impact the amount of wage loss benefits received. Wage loss is crucial in a workers’ compensation claim as it helps to determine the extent of financial damages suffered by the injured worker. Simply put, your wage loss directly affects the compensation you’ll be entitled to receive.

Workers who cannot perform their job requirements after sustaining an injury at work may be eligible for temporary or permanent disability benefits, calculated based on the wage loss. Additionally, wage loss can also be used to measure the injury’s severity and the length of time it may take for the worker to recover and return to work.

Overall, the importance of wage loss in a workers’ compensation case cannot be overstated, as it plays a significant role in determining fair compensation.

Have Questions About Workers' Compensation Calculations?

If you have any concerns about your entitlement to benefits based on your AWW, we strongly recommend you reach out to Meshbesher & Spence today! With our years of experience and successful track record of supporting Minnesotans, we’ll help you navigate the complicated and difficult process following a work injury.

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