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SAWW Increase Bumps California WC Benefits for 2025

Oakland, CA – California’s State Average Weekly Wage (SAWW) rose nearly 3.8 percent in the year ending March 31, 2024, which will result in an increase in California workers’ compensation temporary total disability (TTD) and permanent total disability (PTD) rates for 2025 work injury claims and other workers’ compensation benefits that are tied to SAWW increases.

The latest wage data from the U.S. Department of Labor show that California’s SAWW increased by 3.77588 percent from $1,642 in the first quarter of 2023 to $1,704 in the first quarter of 2024.  As a result, the TTD/PTD maximum rate, which stands at $1,619.15 per week for 2024 injuries, will increase by an additional $61.14 to $1,680.29 per week for claims with injury dates on or after January 1, 2025.  State law also ties minimum weekly TTD/PTD rates to SAWW increases, so those minimums will rise by $9.17 from the current $242.86 per week to $252.03 per week for claims with 2025 injury dates.  The California Division of Workers’ Compensation provided the new TTD/PTD rates for 2025 injury claims and plans to issue a Newsline announcing the new rates.  DWC Newslines can be accessed here.

Also beginning on January 1, 2025, other workers’ compensation benefits, including TTD paid two years or more after injury, life pension and PTD payments for injuries on or after January 1, 2003, and installment payments on death claims will be going up due to the SAWW increase. Underpayment of benefits results in penalties, so CWCI encourages claims administrators to review changes in benefit rates with legal counsel to assure that adjustments are appropriate and accurate.  

For reference, data tables showing the SAWW for the 12 months ending March 31, 2023 and for the 12 months ending March 31, 2024 are on the U.S. Department of Labor Unemployment Insurance web page, https://oui.doleta.gov/unemploy/data_summary/DataSum.asp.  A CWCI Bulletin with more details is also available to Institute members and subscribers under the Communications tab at www.cwci.org.