How is My Average Weekly Wage Calculated?

Your Average Weekly Wage (AWW) in New York workers’ compensation is calculated from your total earnings in the 52 weeks preceding the injury, divided by the number of weeks actually worked. The calculation must include all forms of compensation: base pay, overtime, holiday pay, night and shift differentials, hazard pay, mutual swaps, run guarantees, regular bonuses, commissions, and tips. The carrier’s first-pass AWW is almost always low because it omits one or more components. Your weekly indemnity rate is two-thirds of AWW, capped at the statutory maximum — $1,222.42 for injuries occurring between July 1, 2025 and June 30, 2026.

AWW × 2/3 = your indemnity rate. The first-pass AWW is almost always low.

TL;DR

• Your indemnity rate is two-thirds of your Average Weekly Wage (AWW), capped at the statutory maximum ($1,222.42 for injuries 7/1/2025–6/30/2026).
• AWW is calculated from your earnings in the 52 weeks preceding the injury — including overtime, holiday pay, night differential, mutuals, run-around, and similar additional compensation.
• The carrier’s first-pass AWW is almost always low because it omits one or more components.
• Run the Weekly Rate Calculator to check what your AWW should be.

The basic formula

Your AWW determines your weekly indemnity rate. The formula:

AWW = Total earnings in the 52 weeks before injury ÷ number of weeks worked

Indemnity rate = AWW × 2/3 (subject to statutory maximum)

Statutory maximums by year (for new injuries):

• 7/1/2024–6/30/2025: $1,171.46
• 7/1/2025–6/30/2026: $1,222.42

Older injuries are capped at the maximum in effect on their accident date.

What counts in AWW

The 52-week earnings calculation is supposed to include all forms of compensation:

• Base hourly or salary pay
• Overtime
• Holiday pay
• Night differential, shift differential
• Hazard pay
• Mutual swaps, run guarantees, run-around pay (for transit workers)
• Bonuses (regular, predictable)
• Commission (regular, predictable)
• Per diem (sometimes)
• Tips and gratuities

What’s typically excluded: lump-sum bonuses unrelated to work performance, non-recurring payments.

The “similar employee” comparison

WCL §14 provides for use of a “similar employee” comparison when the claimant didn’t work 52 weeks pre-injury (new hire, seasonal work, irregular employment). The carrier should base AWW on what a similar full-time employee earned. This is often missed.

The 200-day rule

For non-seasonal employment, AWW is multiplied by 1/52 of the annual earnings expectancy in some scenarios. For seasonal employment, different rules apply. The WCB’s AWW worksheets reflect these.

What goes wrong

• Wage statement (C-240) filed by employer is incomplete — missing overtime, missing differentials, missing premium pay components
• Wrong look-back period — using too short a period, missing seasonal patterns
• Tips not reported — restaurant and hospitality workers
• Mutual swaps and run-arounds not counted — transit workers
• Similar employee comparison skipped — when claimant worked less than 52 weeks
• AWW set at base pay only — ignoring overtime patterns

Why this matters

If your true AWW is $1,500/week and the carrier sets it at $1,200/week, you’ve lost $200/week × 2/3 = ~$133/week in indemnity. Over a multi-year case, that’s tens of thousands of dollars.

For high earners hitting the statutory cap, the issue is whether you hit the cap or fall below it. Carrier-set AWW that comes in just below the cap when full payroll would have pushed you above it costs the maximum differential.

What to do next

Run the Weekly Rate Calculator. If your AWW looks low, request your full payroll records and challenge the C-240. Contact me directly.

Related pages

• NY WC forms explained
• Workers’ comp vs SSDI
• MTA Workers
• FDNY EMS Workers’ Comp
• How long does a NY workers’ comp case take?