Michigan Workers’ Comp Settlement Calculator Explained

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Michigan Workers’ Comp Settlement Calculator Explained

Lawyer explains the process of using a Michigan workers’ comp settlement calculator to figure out the weekly rate and estimate a lump sum cash payment amount.

Many of the individuals who contact our office want to know about settlement amounts. Our job as lawyers is to explain their legal rights and help them make an informed decision. Settlement is a good option because it allows people to complete medical treatment and vocational rehabilitation on their own terms. But how much should be paid? There is no magic number that a person can expect to receive. Use the Michigan workers’ comp settlement calculator to estimate what could be paid.

A settlement allows a disabled employee to give up their benefits in exchange for a lump sum cash payment. This money can be used for medical treatment, education, vocational rehabilitation, starting a business, paying off debt, or retirement. Settlement money is income tax free.

Statistics published by the Workers’ Disability Compensation Agency show the average settlement in 2022 was just $62,315.56. Most people are shocked to learn this amount because it does not seem like much money. This is especially true for someone who needs permanent work restrictions and lifetime medical care.

Insurance companies make settlement offers based upon what they believe must be paid in the future. This includes money for lost wages, medical treatment, and vocational rehabilitation. They do not overpay and will try to save money if they can get away with it. For this reason, it is a good idea to speak with a lawyer and use the Michigan workers’ comp settlement calculator to ensure you are getting the maximum amount for your claim.

Calculate Average Weekly Wage (AWW)

Individuals on workers’ comp are supposed to get lost wages based upon their after-tax average weekly wage. This is calculated using the highest paid 39 weeks out of the 52 weeks before the accident. It should include overtime, bonuses, discontinued fringe benefits, and even second jobs.

Watch out for insurance companies who simply estimate the average weekly wage without getting employment records. Insurance companies frequently get away with paying much less than required under Michigan law. The average weekly wage must be correct, or the amount Michigan workers’ comp settlement calculator gives will be skewed low.

Workers’ comp pays 80% of the after-tax average weekly wage. The weekly rate can be calculated using tables published by the State of Michigan. Tax filing status and number of dependents must also be known.

Michigan Workers’ Comp Settlement Calculator

In Michigan, a good starting point for a workers’ comp settlement calculator is multiplying the weekly rate by 52. This shows how much the insurance company pays in annual wage loss benefits. Insurance companies typically calculate a settlement offer using a multiple of this number.


Here is sample of how the math works:

$500.00 (Average Weekly Wage)

$335.38 (80% After-Tax Value – Married/1 Dependent) x 52 = $17,439.76 (Annual Payout)

$17,439.76 (Annual Payout) x 5 (Disability Period) = $87,198.80 (Settlement Amount).

Maximize Settlement Value

An experienced lawyer can maximize settlement value. Developing medical and vocational evidence is key. It is important to have a doctor say what future medical treatment is needed and get an estimate regarding cost. We also recommend exploring vocational rehabilitation options and potential cost.

Injured on the job in Michigan? Call now, our attorneys can help!

If you were injured on the job in Michigan, and want to use our calculator to see how much your workers’ comp settlement is worth, call now to speak with an experienced attorney, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. We’re here for you.

Our attorneys have been exclusively helping injured workers in Michigan for more than 35 years. Our attorneys can help you better understand Michigan laws and what happens after someone has been hurt on the job. To see what our own clients have to say about the caring, compassion, and communication they received from us, you can read in their own words about their experience here on our testimonials page from clients we have helped.

Michigan Workman’s Comp Lawyers never charges a fee to evaluate a potential case. Our law firm has represented injured and disabled employees exclusively for more than 35 years. Call (855) 221-2667 for a free consultation today.

Related information:

How Long Do Workers’ Comp Settlements Take In Michigan: Timeline Explained

Author Bio Jeffrey Kaufman

Author
Jeffrey E. Kaufman
Michigan Workers Comp Attorney

Jeffrey E. Kaufman has extensive experience in workers compensation cases and has recovered millions of dollars in benefits for his clients. He believes all injured workers deserve to be on equal footing with insurance companies and employers, and fights tenaciously so their rights are secured and protected.


“Jeff also helped me with getting my Blue Cross bills paid. I would absolutely recommend him and the whole firm. Jeff and the firm did everything they were supposed to do for me and my case.”
Ricardo Perfetto

Hundreds of 5-Star Reviews

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Get Help From our Michigan Workers’ Comp Lawyers Today

You’re not alone. Our Michigan workers’ comp lawyers have been called the best in the state, and our clients love how they’re treated with care, respect, and responsiveness. We will give you the time you need, we will explain your legal rights, and we will always treat you with respect.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Injured? It’s Time to Get Some Answers

Don’t let the insurance adjuster push you around. Request your free consultation today.

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Our attorneys post regularly about common issues related to workers’ comp, including common injuries, settlement calculations, laws, and more.

Our workers’ compensation and Social Security disability lawyers always put your needs first. Get to know your legal team.