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How workers’ compensation is calculated

On Behalf of | Oct 18, 2024 | Workers' Comp Benefits, Workers' Compensation

In Minnesota, workers’ compensation benefits for an injured employee are calculated using a clear formula based on the employee’s wages.

Average Weekly Wage

The formula is the employee’s “average weekly wage” times two-thirds. The Average Weekly Wage (AWW) is determined by averaging earnings over the 26 weeks before the injury.

If an employee’s earnings are inconsistent, the AWW can be determined by averaging the 13 weeks before the employee sustained the injury.

Statewide Average Weekly Wage

The state sets the Statewide Average Weekly Wage (SAWW). For example, in 2023, the SAWW was $1,337. However, the maximum benefit was $1,363.74, and the minimum was $272.75.

Factors like the severity of the injury and prior earnings can influence the final compensation payout. It is important to speak with your attorney to get a more exact estimate based on your situation.

It is important to understand how the workers’ compensation system works and how it determines payout amounts. This system ensures fair compensation for injured workers in Minnesota.

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