October 24, 2024 | Oakland, CA — MedLegalNews.com – California’s State Average Weekly Wage (SAWW) rose nearly 3.8 percent in the year ending March 31, 2024, which will increase 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 SAWW adjustment has broad implications for employers, insurers, and claims professionals. Beyond raising weekly benefit levels, the increase will also trigger automatic adjustments for long-term benefits such as life pensions, permanent total disability awards, and death benefit installment payments. Because California law imposes penalties for underpayment, industry experts stress the importance of auditing claims systems, updating payment schedules, and working with legal counsel to ensure compliance with the new 2025 benefit rates.
SAWW Increase Raises 2025 California TTD/PTD Rates
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 ensure 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. A CWCI Bulletin with more details is also available to Institute members and subscribers under the Communications tab at www.cwci.org.
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FAQs: California Workers’ Compensation Benefits 2025
How does the SAWW increase affect California workers’ compensation benefits in 2025?
The SAWW increase boosts both maximum and minimum TTD/PTD weekly rates for 2025, raising overall California workers’ compensation benefits.
What will the maximum TTD/PTD rate be for California workers’ compensation benefits in 2025?
For 2025 claims, the maximum TTD/PTD weekly rate rises to $1,680.29, reflecting the 3.8% SAWW increase reported by the U.S. Department of Labor.
Will the minimum California workers’ compensation benefits also rise in 2025?
Yes. The minimum TTD/PTD weekly benefit increases from $242.86 to $252.03 for 2025 claims due to the SAWW adjustment.
Why should claims administrators track SAWW-driven changes in California workers’ compensation benefits?
Accurate benefit adjustments prevent underpayments and penalties. Staying updated ensures compliance and proper compensation for injured workers.