
Workers’ compensation can be a complicated topic, especially when it comes to calculating your average weekly wage. As a new employee, understanding how this figure is determined is crucial in ensuring you receive the appropriate compensation in the event of an injury. So, how exactly do they figure out your average weekly wage as a new employee?
Why Is the Average Weekly Wage Calculation Important?

The average weekly wage calculation is an important factor when determining workers’ compensation benefits.
Firstly, this calculation ensures that injured workers are compensated for their lost wages at a fair and reasonable rate. If an injured employee’s weekly wage is not accurately calculated, they may receive an insufficient amount of compensation, which can lead to financial difficulties and hardship.
Additionally, the average weekly wage calculation is used to determine the maximum amount of benefits an injured worker can receive. Different states have different maximum benefit limits, which are often based on a percentage of the employee’s average weekly wage. By accurately calculating the average weekly wage, the workers’ compensation system can ensure that injured workers receive the maximum benefits they are entitled to under the law.
Moreover, the average weekly wage calculation can help in knowing the duration of benefits. In some cases, injured workers may receive temporary total disability benefits, which provide compensation for the time they are unable to work due to their injury.
What are the Factors Considered in Calculating Average Weekly Wage?
Calculating the average weekly wage for workers’ compensation can be a complex process. Here are the key factors that are usually considered:
1. Time Period
The first factor is the length of time the employee has been working at the company. Typically, the average weekly wage is calculated based on the earnings for a specific period, such as the 52 weeks preceding the injury or the number of weeks the employee has been employed.
2. Earnings
The employee’s earnings are a fundamental aspect of the calculation. This includes all forms of compensation, such as wages, salaries, tips, commissions, and bonuses. Additional payments like overtime, holiday pay, and allowances may also be considered. However, fringe benefits like insurance, pensions, or employer contributions to retirement plans are usually excluded.
3. Consistency
To ensure fairness, the calculation takes into account the consistency of the employee’s earnings. If the employee’s earnings have been irregular or fluctuating due to factors like seasonal work or temporary positions, the average weekly wage may be calculated by considering a longer period of time to establish a more accurate representation.
4. Full-Time or Part-Time
The employee’s work status, whether full-time or part-time, is factored in. Part-time employees may have their average weekly wage adjusted to reflect the comparable earnings of a full-time employee in the same position or industry.
5. Similar Employees
If an injured employee cannot return to their previous position due to the nature of their injury, the average weekly wage may also be assessed based on the earnings of similar employees in the same occupation or industry. This helps to ensure fair compensation and prevent disadvantages resulting from reduced job prospects due to the injury.
What are the Steps to Determine Average Weekly Wage?
1. Gather Necessary Information
To calculate your average weekly wage, you will need to gather information regarding your earnings over a specific period. This usually includes pay stubs, W-2 forms, or any other documentation that verifies your income.
2. Calculate Your Total Earnings
Add up your total earnings for the applicable period. This can include wages, salaries, tips, bonuses, commissions, and any other forms of income you received from your employer.
3. Determine the Time Period
Identify the specific time frame that will be used to calculate your average weekly wage. This period is typically based on your employment history, but it may vary depending on legal requirements or company policies.
4. Adjust for Overtime and Paid Time Off
If you have worked overtime or received paid time off during the selected period, it is important to account for these additional factors. Overtime pay and paid leave should be included in your total earnings for that period.
5. Divide by the Number of Weeks
Once you have the total earnings for the selected period, divide it by the number of weeks in that period to get your average weekly wage. This will give you an estimate of your earnings on a weekly basis.
6. Consider Additional Factors
In some cases, there may be additional factors that need to be taken into account when determining your average weekly wage. This could include things like seasonal fluctuations, irregular work hours, or other specific circumstances that may impact your earnings.
Why is it Important to Seek Legal Advice for Workers’ Compensation Claims?

Seeking legal advice for workers’ compensation claims is of utmost importance, especially when it comes to determining the average weekly wage. While it may seem like a straightforward process, there are various factors and calculations involved that can be complex and confusing for those who are not well-versed in workers’ compensation laws.
An experienced workers’ compensation attorney can guide you through the process and can help you protect your rights and ensure that you are not being shortchanged by your employer or insurance company.
Oxner + Permar can help you with any questions or concerns you may have about calculating your average weekly wage for workers’ compensation. Our attorneys provide experienced and dedicated legal representation to injured workers throughout North Carolina and are here to help you get the maximum amount of compensation that you are rightfully entitled to. Contact us today to learn more.