Average Weekly Wage Formula:
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The Average Weekly Wage (AWW) calculation is used in California workers' compensation cases to determine the base compensation rate for injured workers. It represents the average earnings per week over a 52-week period prior to the injury.
The calculator uses the AWW formula:
Where:
Explanation: This calculation provides a standardized method to determine weekly earnings for workers' compensation benefits in California.
Details: Accurate AWW calculation is crucial for determining appropriate workers' compensation benefits, including temporary disability, permanent disability, and life pension payments under California law.
Tips: Enter the total wages earned over the 52-week period prior to injury. The value must be a positive number representing actual earnings.
Q1: What time period does the 52 weeks represent?
A: The 52-week period typically represents the year immediately preceding the date of injury or illness.
Q2: What types of income are included in total wages?
A: Total wages include regular pay, overtime, bonuses, commissions, and the value of any non-monetary compensation provided by the employer.
Q3: What if the worker wasn't employed for the full 52 weeks?
A: For workers employed less than 52 weeks, California uses actual earnings divided by the number of weeks worked to calculate AWW.
Q4: How does AWW affect workers' compensation benefits?
A: AWW directly determines the amount of temporary and permanent disability benefits an injured worker receives.
Q5: Are there maximum limits on AWW calculations?
A: Yes, California sets maximum and minimum AWW amounts that change annually based on the state average weekly wage.