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How Much Does Workers Comp Pay?

Alvine Weidenaar, Worker’s Compensation

Workers’ compensation insurance is an insurance coverage paid by employers, which covers their employees if they suffer any work-related illness or injury. It helps to cover medical costs, and salary/wages lost in the time. But workers’ compensation differs by state. So, make sure that you visit your state’s website to learn more about the compensation package.

Workers’ compensation is beneficial in three ways:

  • It covers your employees’ work-related illness or injuries
  • Protects your company from being sued
  • It keeps your company compliant with the regulations of the state

How Much Does Workers’ Compensation Pay?

On the job, injuries and illnesses can happen no matter what type of business you have. Here, workers’ compensation coverage comes in to give your employees peace of mind if it happens.

An injured or ill employee can file for workers’ compensation, and they will receive a weekly payout that can help to cover their medical bills and or lost wages. Other names for this type of coverage are workers’ comp insurance or workman’s compensation. But if your employee didn’t get injured on the job, they won’t be liable to get compensated.

The Average Weekly Wage

The workers’ compensation coverage pays your employees a percentage of their average weekly wage. However, the weekly payout will be determined by the state regulations.

The example below will help you calculate your employees’ average pay per week.

A full-time employee makes $60,000 last year after working 250 days. So, you divide $60,000 by 250, making their average daily wage $240. Then you multiply $240 by 260 (the number of days a full-time employee should work each year), giving you $62,400. Finally, you’ll then divide $62,400 by 52 (being the number of weeks in a year) to get an average weekly wage of $1,200.

Total vs Partial Disability

The amount of payout your employee will receive is also determined by the type of injuries or illness they suffer from. The benefits will differ for partial versus total disability.

An employee that is totally disabled will receive up to 60 percent of their average weekly wage. You should ensure that you understand the maximum payout in your state because each state is different.

The state you run your business in will also determine how long payments will last. However, the more severe the injury, the longer the payments will be.

Workers’ Comp Calculator

To understand how worker’s compensation is calculated, you must understand the factors that affect it. This includes:

  • Payroll
  • Claims history
  • Number of employees
  • Workers’ class code

Each state has its own code used to classify its workers. The National Council of Compensation Insurance assigned these codes. The state will determine the uniqueness of your business and compare it to others like it. Then your business’ payroll will be multiplied by the rate per class which is $100.

All these factors combined helps to determine the worker’s compensation rate.


Finding someone to teach you how workers’ compensation works can be a hassle. Let our workers comp lawyer help you learn the process. Visit our website at Alvine Weidenaar LLP to learn more about us and how we can help you.

Get the help you need today!

Our legal team’s expertise allows us to quickly evaluate your claim to allow you to get back to living your life.