Michigan Workers Compensation Death Benefits Overview

After someone dies from a work-related accident in Michigan, the person’s dependents are entitled to workers’ compensation death benefits, which are also known as survivors benefits, to help them financially. (MCL 418.301(1))

In Michigan, eligible dependents can receive workers’ compensation death benefits (survivor benefits) equal to 80% of the deceased employee’s after-tax average weekly wage, paid for up to 500 weeks (approximately 9.5 years). (MCL 418.321) Employers or their insurers must also pay a $6,000 burial allowance. (418.345)

Below are answers to common questions about Michigan workers’ compensation death benefits claims.

To speak with one of our attorneys now, call us at (855) 221-2667. You can also fill out our contact form. The call is free and the advice is free.

Does Workers’ Comp Cover Death in Michigan?

Yes, workers’ compensation covers a death on the job in Michigan. Eligible dependents receive survivor benefits, and employers or their insurers must also pay a $6,000 burial allowance. (MCL 418.345).

What Benefits Does Workers’ Compensation Pay for a Death in Michigan?

In Michigan, workers’ compensation death benefits (aka survivor benefits) are paid to eligible dependents when someone dies in a work-related accident. The amount payable is equal to 80% of the deceased employee’s after-tax average weekly wage for up to 500 weeks. (MCL 418.321) Workers’ compensation is your exclusive remedy against the employer. (MCL 418.131)

Our state’s workplace injury system is not always a fair one, and the value of these benefits is small compared to the pain of losing a loved one.

Generally, compensation for pain and suffering and loss of consortium is not recoverable against an employer under our state’s workplace injury system.

Who Can Collect After Someone Dies in a Work-Related Accident in Michigan?

In Michigan, workers’ compensation death benefits (aka survivor benefits) are paid eligible dependents after someone dies in a work-related accident. There must be at least one dependent to qualify for survivor benefits. (MCL 418.341) Dependency is a complicated legal issue and you cannot just rely on common sense. Multiple dependents may share in any recovery.

A spouse must prove that he or she was dependent on the deceased employee to receive survivor benefits. A spouse could be found to be wholly or partially dependent. This determination can be very complicated as several factors must be considered. Some factors include whether the spouse is receiving income from another source and how much the deceased employee actually contributed to the surviving spouse. If the spouse is found to be partially dependent, he or she will still receive 500 weeks of survivor benefits but at a reduced rate.

If a surviving spouse remarries while receiving survivor benefits, her weekly payments do not simply stop. Instead, she receives a final lump-sum payment of the remaining compensation owed to her, up to a maximum of $500. (MCL 418.335) Any balance beyond that $500 cap is redirected to other dependents who were wholly or partially dependent on the deceased employee — it is not forfeited by the estate or the insurer.

When multiple dependents share survivor benefits, the weekly amount is apportioned based on each person’s degree of financial dependency at the time of the injury, not divided equally by default. (MCL 418.331) A wholly dependent child, for example, may receive a different share than a partially dependent parent, and these percentages can be disputed or adjusted if a dependent’s circumstances change.

If an employee dies in a job-related accident, the employee’s child under age 16 is conclusively presumed to be wholly dependent and is generally entitled to survivor benefits for up to 500 weeks. (MCL 418.331(1); MCL 418.321).

A child age 16 or older who is not physically or mentally incapacitated from earning may need to establish actual dependency to qualify for survivor benefits (MCL 418.331(2)).

A child over age 16 who is physically or mentally incapacitated from earning and living with the deceased parent is also considered wholly dependent and is generally entitled to survivor benefits for up to 500 weeks (MCL 418.331(1); MCL 418.321).

If a dependent child is still under the age of 21 when the 500-week benefit period ends, a workers’ compensation magistrate may order continued weekly death benefits until the child reaches age 21 under certain circumstances. (MCL 418.321)

Remarriage of a surviving spouse also affects the 500-week timeline — her weekly benefits convert to a capped lump-sum payment rather than continuing for the full 500 weeks. (MCL 418.335)

Who Is Considered an Eligible Dependent?

Under Michigan law, workers’ compensation death benefits are distributed among individuals who were wholly or partially dependent on the deceased employee’s earnings at the time of injury. This typically includes:

• A surviving spouse
• Children of the surviving spouse
• Children from a former spouse
• Other relatives who can prove they relied on the deceased employee for financial support

If there are multiple partially dependent individuals, benefits are apportioned based on each person’s level of financial dependency. (MCL 418.331)

What Is the Rate for Survivors Benefits?

In Michigan, workers’ compensation death benefits are subject to a statutory maximum weekly comp rate. For injuries or fatal accidents occurring in 2026, the maximum weekly benefit is $1,201.00.

No employee is allowed to receive survivor benefits above 90 percent of the state average weekly wage. This can be extremely difficult for a family who lost a high wage earner. The comp rate is fixed at the time of injury.

How Are Survivor Benefits Calculated?

Survivor benefits are based on the employee’s average weekly wage (AWW), which is generally calculated by totaling the employee’s highest 39 paid weeks during the 52 weeks immediately preceding the injury and dividing by 39. Overtime and premium pay are included in the calculation. (MCL 418.371)

Eligible dependents generally receive weekly survivor benefits equal to 80% of the deceased employee’s after-tax average weekly wage, subject to our state’s statutory minimum and maximum benefit rates. (MCL 418.321)

Benefits are generally paid weekly (MCL 418.321) and are exempt from federal and state income tax.

In some cases, eligible dependents may negotiate a lump-sum settlement (redemption) instead of continuing weekly payments, subject to approval under state law. (MCL 418.835)

Calculating survivor benefits correctly requires accounting for exactly which weeks count as the employee’s “highest 39,” how bonuses, overtime, and multiple jobs factor into the average weekly wage, and whether the insurer applied the correct statutory minimum or maximum. Insurance companies sometimes use lower wage figures or exclude income that should be included, which reduces the benefit dependents receive. An attorney can review the wage calculation, request the underlying payroll records, and challenge the number if it was calculated incorrectly, which can mean a meaningful difference in the weekly amount a family receives for years to come.

What If There Are No Dependents?

In Michigan, if there are no dependents, workers’ compensation death benefits are limited to a $6,000 burial allowance. (MCL 418.345) However, the estate of a deceased employee could have a claim for benefits that should have been paid before they died.

Are Workers’ Compensation Death Benefits Taxable in Michigan?

In Michigan, workers’ compensation death benefits are income tax free.

How Do I Know If I’m Receiving the Correct Amount of Survivors Benefits?

The best way to make sure you’re receiving the correct amount of workers’ compensation death benefits is to speak with an experienced lawyer. Insurance companies frequently make mistakes — and they are never in your favor.

We recently represented a woman who was paid at the wrong weekly rate and was receiving substantially less survivors benefits than what the law required. We were able to have her survivors benefits increased by sending a letter explaining the error.

How Do I File a Claim for Workers’ Compensation Death Benefits?

To receive Michigan workers’ compensation death benefits, the deceased employee’s dependents should notify the employer and ensure that a claim is made within two years after the employee’s passing. (MCL 418.381(1)) Missing this deadline can jeopardize your right to benefits, so it’s important to act promptly. An experienced lawyer can help make sure the claim is filed correctly and on time.

Because these claims can involve complicated issues such as determining eligible dependents, calculating the correct benefit amount, and protecting the claim from disputes, working with an experienced lawyer can help ensure the family receives the benefits they are entitled to under state law. A lawyer can help gather the necessary documentation, communicate with the employer and insurance carrier, and address any challenges that arise during the claims process.

Why Choose Michigan Workers’ Compensation Lawyers To Help With My Death Benefits Claim?

If you are lost a loved one due to a workplace injury and you are pursuing workers’ compensation death benefits, choosing Michigan Workers’ Comp Lawyers ensures your case is handled by attorneys with decades of focused experience in this area of law. We don’t just manage general claims—we specialize in workplace accident cases, bringing deep knowledge of our state’s injury law to every matter.

Our team’s credentials speak for themselves: founding attorney Alex Berman has been recognized as a Super Lawyer for ten consecutive years and received the Hall of Fame Award from the State Bar. Jeffrey E. Kaufman and Andrea L. Hamm have earned Super Lawyer status after years of Rising Star recognition, and our attorneys—including Todd Barry and William E. Gray—have consistently been named Top Lawyers in Metro Detroit by DBusiness Magazine. These achievements reflect real, verifiable expertise and sustained performance, giving you confidence that your claim will be handled with the authority, skill, and attention it deserves.

Did You Lose a Loved One in a Workplace Accident? Call Our Attorneys Now for a Free Consultation!

If you lost a loved one due to a workplace accident in Michigan, have questions about your legal rights to workers’ compensation death benefits, call now at (844) 730-6225 or fill out our contact form for a free consultation with an experienced lawyer. There is absolutely no cost or obligation. We’re here for you.

For more than 40 years, our lawyers have been helping people like you who have suffered from on-the-job injuries throughout the state. We understand the physical, emotional, and psychological hardships you are experiencing from your accident. We also have the skill, experience, and know-how to protect you and get you the best possible payout amount for your case.

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.

Remember, every workplace injury claim and settlement is different and must be negotiated on its own merits. Do not accept any payout amount without fully understanding your legal rights.