Michigan workers’ comp lawyer explains how to calculate your average weekly wage (AWW) and why it is so important to double check insurance company math.
Employees who are hurt on-the-job have legal rights. They are entitled to be paid for time off if it exceeds 7 days. The amount paid for Michigan workers’ comp wage loss benefits is going to be based upon their average weekly wage (AWW). Items like overtime, bonuses, discontinued fringe benefits, and even second jobs that cannot be done should be included. This is a part of the safety net that workers’ comp provides.
Employees should be paid 80% of their after-tax AWW. This is subject to a maximum of 90% of the state-wide AWW, which is $1,164.00 for 2025. The idea of a maximum is to limit what people collect on workers’ comp, and it is not always fair. It does not matter if they played football for the Detroit Lions and earned millions of dollars per year they are stuck with the maximum.
What is the average weekly wage in Michigan for workers’ comp?
According to Michigan workers’ comp law, the average weekly wage (AWW) is the combined highest 39 paid weeks out of 52 weeks before the workplace accident occurred. It is used to calculate the weekly comp rate.
How to calculate average weekly wage for workers’ comp in Michigan?
Calculate your AWW by taking the highest 39 paid weeks out of the 52 weeks before you were hurt and adding them together. If you divide this number by 39, you will get your AWW. Be sure to include items like overtime, bonuses, discontinued fringe benefits, and second jobs that cannot be done anymore.
If a person worked less than 39 weeks for an employer, use the total number of weeks worked. The rest of the calculation should be the same. It can get complicated if there are partial weeks that must be included so it is best to get a free consultation with an attorney should any questions arise.
Use the AWW to figure out the comp rate in Michigan.
According to Michigan workers’ comp law, employees who are unable to work get 80% of their after-tax average weekly wage. This amount can be determined using tables (2025) published by the State of Michigan or online calculator. You need to know tax filing status and number of dependents. Use the columns on the top and side to locate the appropriate weekly comp rate.
Watch out for common insurance company errors.
Insurance companies often make mistakes. They will estimate a comp rate using just your hourly rate. This is incorrect and could lead to hundreds of dollars per week in lost wage loss benefits. Make sure actual wage records from your employer are being utilized. Double-check the AWW yourself.
Don’t let the insurance company underpay you because of a simple math error. This can lead to hundreds of dollars per week in missing wage loss benefits. It can also have an impact on the value of any settlement because the insurance company thinks it only must pay a small amount.
Speak with an experienced Michigan workers’ comp lawyer who can review your claim and verify the correct average weekly wage is being used. There is no fee unless additional wage loss benefits or a settlement is obtained.
Need help with your claim? Call our attorneys now.
If you are injured on the job and need help with your work injury claim, call Michigan Workers' Comp Lawyers at (855) 221-2667 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 40 years. Our attorneys can help you better understand our state's 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 never charges 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.
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