The average weekly wage is an extremely important number. This is used to calculate your weekly compensation rate. If the average weekly wage is wrong, then it is very possible that your weekly wage benefits are also wrong. A mistake of $10.00 per week in your weekly compensation rate results in a loss to you of $520.00 per year.
Therefore, the average weekly wage must be calculated properly and should be confirmed with payroll records. The average weekly wage is calculated using gross wages in the one year period prior to your work injury. Average weekly wage, or AWW, includes bonuses, incentives, vacation pay, board and lodging allowances and federal reported gratuities.
Once your AWW is calculated, your corresponding weekly compensation rate is easy to determine.
Remember, your average weekly wage is calculated as of the date of
injury and there is no cost of living increase, regardless of how long you
receive workers’ compensation benefits.
Also note that if you worked for two employers when you were hurt,
you may be entitled to include the wages from both jobs in your AWW.