How Much Does Workers’ Compensation Pay While You’re Off Work? (2026 Guide)
Introduction
After a workplace injury, one of the most urgent questions employees ask is: “How much will workers’ compensation pay me while I’m off work?” Understanding wage replacement benefits is critical for financial planning during recovery.
This comprehensive guide explains how workers’ compensation pay is calculated, what percentage of wages you receive, waiting periods, payment limits, and how rules differ in California, Texas, and monopolistic workers’ compensation states.
The Basic Rule: Partial Wage Replacement
Workers’ compensation does not replace 100% of lost wages. Instead, most states pay about:
👉 66⅔% (two-thirds) of your average weekly wage (AWW)
These payments are typically tax-free, making them closer to full take-home pay than a paycheck.
How Average Weekly Wage (AWW) Is Calculated
Your average weekly wage is the foundation of workers’ comp pay.
AWW may include:
- Hourly or salary wages
- Overtime (in some states)
- Bonuses or commissions
- Tips (if documented)
States use different calculation formulas, often averaging earnings over 13 to 52 weeks before the injury.
Temporary Total Disability (TTD) Payments
When TTD Applies
TTD benefits are paid when:
- A doctor takes you completely off work
- No modified or light-duty work is available
How Much TTD Pays
- Usually two-thirds of AWW
- Subject to state minimums and maximums
Payments continue until you return to work or reach maximum medical improvement (MMI).
Temporary Partial Disability (TPD) Payments
TPD benefits apply when you:
- Return to work with restrictions
- Earn less than before the injury
TPD typically pays a percentage of the difference between pre-injury and post-injury earnings.
Waiting Periods Before Payments Begin
Most states require a waiting period before wage benefits start.
Common rules:
- 3 to 7 days unpaid
- Retroactive payment if disability lasts beyond a threshold (often 14 days)
Medical benefits begin immediately, regardless of waiting periods.
Maximum and Minimum Benefit Caps
Each state sets:
- Maximum weekly benefit amounts
- Minimum weekly benefit amounts
High earners may receive less than two-thirds due to benefit caps.
Permanent Disability Payments
If the injury causes lasting impairment:
- Permanent Partial Disability (PPD) pays scheduled amounts
- Permanent Total Disability (PTD) may pay lifetime benefits
Rates are often lower than temporary benefits and follow strict formulas.
California Workers’ Compensation Pay Rules
California calculates benefits based on AWW with annual caps.
Key California features:
- Two-thirds wage replacement
- Annual maximum limits
- Separate PD payment schedules
- Waiting period of 3 days
California payments are among the most regulated in the U.S.
Texas Workers’ Compensation Pay Rules
Texas benefits apply only to subscribing employers.
Key Texas wage benefit types:
- Temporary Income Benefits (TIBs)
- Impairment Income Benefits (IIBs)
- Supplemental Income Benefits (SIBs)
- Lifetime Income Benefits (LIBs)
Texas uses strict eligibility and duration rules.
Pay Rules in Monopolistic Workers’ Compensation States
Monopolistic states provide standardized benefit calculations through state funds.
Common features:
- Uniform AWW formulas
- Clear benefit caps
- Strong return-to-work incentives
States include Ohio, Washington, Wyoming, and North Dakota.
Example Workers’ Compensation Pay Scenarios
Example 1:
- Pre-injury wage: $900/week
- Workers’ comp pay: ~$600/week (tax-free)
Example 2:
- Light duty earnings: $500/week
- Partial benefit may apply to cover wage gap
What Can Reduce or Stop Wage Payments?
Payments may stop or reduce if:
- You return to work
- You miss medical appointments
- You refuse light-duty work
- A settlement is reached
Understanding compliance obligations protects your income.
Frequently Asked Questions (FAQs)
Are workers’ comp checks taxable?
No, in most cases they are tax-free.
Can I earn money while receiving benefits?
Yes, but earnings must be reported.
Do benefits increase with dependents?
Usually no, except for death benefits.
Internal Linking Suggestions (SEO)
- What Benefits Does Workers’ Compensation Provide?
- Do You Have to Prove Fault to Get Workers’ Compensation?
- When Do Workers’ Compensation Benefits End?
Conclusion
Workers’ compensation wage benefits provide essential income support during recovery, even though they do not replace full wages.
While the two-thirds rule is common nationwide, California’s caps, Texas’s structured benefit categories, and monopolistic state formulas create meaningful differences.
Knowing how your pay is calculated helps you plan, comply, and protect your benefits.