How to calculate the weekly comp rate and what percentage of salary can a disabled employee expect under workers’ comp in Michigan.
We often describe workers’ comp as a safety net for people who are hurt on-the-job. Employees are entitled to lost wages if they are unable to work because of a workplace accident. These payments are based upon their average weekly wage. Does workers’ comp pay full salary in Michigan? No, only a percentage will be paid using a math formula. Employees can expect 80% of their after-tax salary or approximately 60% of gross pay under workers’ comp.
Insurance companies frequently make errors, and they are never in our client’s favor. It is a good idea to doublecheck math calculations to make sure every dollar owed is paid. Workers’ comp does not pay full salary in Michigan, but compensation should be 80% of the employees after tax average weekly wage. This is based upon actual earnings and should not be estimated using an hourly rate. We have seen insurance companies pay hundreds of dollars less per week simply because they did not get wage records from the employer. Items like overtime, discontinued fringe benefits, and even second jobs must be factored into the calculation.
Does workers’ comp pay full salary in Michigan?
No, workers’ comp in Michigan does not cover your full salary. Instead, it provides wage loss benefits equal to approximately 80% of your after-tax average weekly earnings, subject to state maximum. This benefit is designed to partially replace your income while you’re unable to work due to a job-related injury or illness. While it helps ease the financial burden during recovery, it’s not meant to fully match your regular paycheck.
What is the purpose of wage loss benefits?
Wage loss benefits in are designed to partially replace lost income for workers who can’t work or earn their usual wages due to a job-related injury or illness. These Michigan workers’ comp wage loss benefits provide up to 80% of your after-tax average weekly earnings, helping to ease the financial burden during recovery without paying your full salary.
How are wage loss benefits calculated
Though Michigan workers’ comp doesn’t pay full salary it does provide wage loss benefits that provide provide up to 80% of your after-tax average weekly earnings. This calculation should include money for overtime, discontinued fringe benefits, and even second jobs. It is based upon the highest 39 paid weeks out of the 52 weeks before the work accident occurred.
Tables published by the WDCA show the weekly comp rate based upon average weekly wage. Tax filing status and number of dependents also influence how much is paid. Any money paid under workers’ comp should be income tax free.
Lost wages are capped at 90% of the state-wide average weekly wage (SAWW), regardless of income. Though workers’ comp doesn’t pay full salary in Michigan it is important to note that the maximum weekly comp rate is $1,164.00 for 2025.
It does not matter if a person was working as a general laborer or quarterback for the Detroit Lions. The idea is to limit weekly payments to what most people get under workers’ comp. It is not exactly fair to high wage earners who take a big cut in their salary.
Discontinued fringe benefits cannot be included if the weekly comp rate exceeds 2/3 of the SAWW. This amount is $861.49 for 2025.
Watch out for insurance companies who use something called post-injury wage earning capacity (PIWEC) to reduce or stop weekly checks. This is when the insurance company says a person can find alternate employment but does not actually provide a job. The labor market survey is rarely a fair representation of what type of employment is truly available. We recommend speaking with an experienced workers’ comp lawyer should this occur.
What other benefits are available?
Although workers’ comp in Michigan doesn’t pay your full salary, it offers wage loss benefits along with other essential services to support your recovery. These include full coverage for medical treatment related to your injury, vocational rehabilitation if you can’t return to your old job, and attendant care services if daily assitance is needed. You may also be reimbursed for travel to medical appointments, receive specific loss benefits for permanent injuries, and, in fatal cases, your dependents may be eligible for death benefits and funeral expenses.
Injured while on-the-job in Michigan and wondering if workers’ comp pays full salary? Contact our lawyers now for a free consultation!
If you were injured while on the job in Michigan and are wondering if workers’ comp will pay full salary or curious to know what your average weekly wage should be, call us now (855) 221-2667, or fill out our contact form for a free consultation. There is absolutely no cost or obligation. Our attorneys are here for you.
Our attorneys have been exclusively helping injured workers in Michigan for more than 40 years. Our attorneys can help you better understand Michigan work injury 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 Workers’ Comp Lawyers law firm has consistently secured the largest settlements in the state and is the best choice for your case. We never charge a fee to evaluate a potential case. Our law firm has represented injured and disabled workers exclusively for more than 40 years. Call (855) 221-2667 for a free consultation today.
Related information:
Long Term Disability vs. Workers’ Comp: What’s The Difference?
