What Is Average Weekly Wage (AWW)?

Every workers' compensation weekly benefit starts with one number: your Average Weekly Wage. Get this number wrong — or let an insurer get it wrong — and every check that follows will be wrong too.

The Basic Definition

AWW is a measure of your typical earnings before your injury, used as the base figure that your state's benefit percentage is applied to. Most states calculate it by taking your total gross wages over a defined look-back period — commonly the 52 weeks before your injury — and dividing by the number of weeks.

What Counts Toward AWW

Usually Included

Base wages, regularly scheduled overtime, non-discretionary bonuses, commissions, and in many states, the value of certain fringe benefits like employer-paid health insurance if it's lost due to the injury.

Sometimes Excluded or Disputed

One-time bonuses, reimbursed expenses, and irregular overtime are more likely to be excluded or contested — this is a common area of dispute between injured workers and insurance carriers.

Alternative Calculation Methods

If you didn't work the full look-back period — new hires, seasonal workers, part-time employees moving to full-time — states use alternative methods: a shorter 13-week average, the wage of a "similar employee" who worked the full period, or an annualized projection of your actual earnings.

Why This Number Is Worth Fighting For

Because your weekly benefit is a percentage of AWW, even a modest miscalculation compounds over the life of a claim. A worker whose AWW is understated by $100/week at a 66.67% benefit rate loses about $67 every week they're on benefits — which adds up fast over months of disability.

Frequently Asked Questions

What time period is used to calculate AWW?

Most states use the 52 weeks immediately before the date of injury. Some states use a shorter period, such as 13 weeks, particularly for newer employees.

Does AWW include overtime and bonuses?

In most states, yes — regularly earned overtime, bonuses, and commissions are typically included if they represent a consistent part of your earnings.

What if I had a second job when I was injured?

Many states allow wages from concurrent employment to be included if the injury prevents you from working both jobs — but rules vary significantly.

What happens if I worked less than a full year?

Some states estimate AWW using the wages of a similar employee who worked the full period, or annualize your actual earnings.

Can I dispute my employer's AWW calculation?

Yes. If you believe key wage components were omitted, you can typically request a review or file a dispute with your state's workers' compensation board.

Related Reading

TTD vs. PPD vs. PTD: Disability Types Explained · How Long Does a Workers' Comp Claim Take? · About & Methodology