What Is an Average Weekly Wage?

The formula for calculating AWW varies by state. If you have been injured in an on-the-job accident, your employer’s workers’ compensation insurance plan is intended to account for the wages you are losing due to your injury. You may be curious about how exactly the amount of benefits you receive will be determined.

The calculation of your workers’ compensation benefits depends on the figure known as your “average weekly wage.” The term “average weekly wage” is pretty self-explanatory — it is the amount of money a worker generally makes in any given week. However, calculating your average weekly wage for workers’ compensation purposes may depend on the type of work you performed at the time of your injury. This weekly wage is calculated based on gross earnings, including overtime and is calculated on the 52 weeks prior to your injury.

How Are Workers’ Compensation Benefits Determined Based on My Average Weekly Wage?

In North Carolina, state law outlines a benefits plan that is equivalent to two-thirds (66⅔%) of an injured worker’s average weekly wage. Benefits are capped at a maximum amount that is determined each year and is listed on the North Carolina Industrial Commission’s website —  for 2019, the workers’ comp benefits cap is $1,028 per week. This only applies to workers who exceed the maximum amount when calculating two-thirds of their average weekly wage.

How Do I Calculate My Average Weekly Wage?

Your average weekly wage calculation may vary based on if you were a full-time, part-time, or seasonal employee when you were injured. In general, the average weekly wage is calculated by taking the number of wages you earned in the year of your injury (leading up to the actual injury date), and then dividing that figure by the number of days you worked in that year. Depending on your circumstances, your daily wage will be multiplied by the average number of days worked for your situation (e.g. full-time or part-time). That number will be divided by 52 (the number of weeks in a year) to find your average weekly wage.

If you’re still unsure about the amount of your average weekly wage, the benefits you’ll receive, or any other workers’ compensation questions, contact Roane Law to schedule a free consultation with our attorneys in Greensboro. Fill out our message form or call (336) 790-5194″>(336) 790-5194 to reach us!