Arizona Workers’ Comp Weekly Benefit Calculator (2026)
Quick Answer: In Arizona, workers’ comp pays 66.67% of your average weekly wage (AWW), up to a maximum of $943.23 per week for 2026. Your AWW is calculated from your gross earnings in the 30 days before your injury, divided by the number of days worked, then multiplied by 26 (bi-weekly periods) divided by 26 — ultimately annualized and reduced to a weekly figure. Most workers receive significantly less than the maximum. Use the table below to find your exact benefit.
This content is for informational purposes only and does not constitute legal advice. I am not a lawyer. Consult a licensed workers’ comp attorney in your state.
📌 From Shane
When I got hurt and my first check arrived, I stared at it for a long time. Sixty-six cents on the dollar sounds manageable until your mortgage, truck payment, and grocery bill don’t care that you’re injured. The math hits different when it’s real.
What I learned — the hard way — is that your benefit is only as accurate as the wage calculation underneath it. My employer’s HR department handed the insurance carrier a number that conveniently left out my regular overtime. My check was wrong for six weeks before I caught it. That difference was the equivalent of $180 per week. Over a 12-week claim, that’s $2,160 I almost never saw.
This guide exists so you can do the math yourself before your first check clears. Know your number. Verify it. Fight for it if it’s wrong.
— Shane
The Exact Calculation Formula
Arizona workers’ comp temporary disability benefits are governed by A.R.S. § 23-1041 and administered through the Industrial Commission of Arizona (ICA). The formula has three moving parts.
Step 1: Calculate Your Average Monthly Wage (AMW)
Arizona is one of the few states that anchors the calculation to the month before your injury, not a 52-week average. The ICA uses your gross wages earned in the 30 calendar days immediately preceding the date of injury.
Formula:
Average Monthly Wage (AMW) = Total Gross Earnings in 30 Days Before Injury
Average Weekly Wage (AWW) = AMW × 12 ÷ 52
Temporary Disability Benefit = AWW × 66.67%
Step 2: What Counts as “Gross Earnings”
This is where errors — intentional or accidental — most often occur.
| Earnings Type | Included in AWW? | Notes |
|---|---|---|
| Regular hourly wages | ✅ Yes | All hours worked |
| Mandatory overtime | ✅ Yes | Regularly scheduled OT is included |
| Voluntary overtime | ✅ Yes | Arizona includes all earned overtime |
| Shift differentials | ✅ Yes | Night pay, weekend pay, hazard pay |
| Tips (reported) | ✅ Yes | Must be documented |
| Commissions earned | ✅ Yes | Pro-rated for the period |
| Bonuses (regular/production) | ✅ Yes | If regularly paid, included in AMW |
| Bonuses (discretionary/holiday) | ⚠️ Sometimes | Disputed; ICA judges it case by case |
| Second-job wages | ✅ Yes | If employer knew you held multiple jobs |
| Per diem / expense reimbursements | ❌ No | Not considered earned wages |
| Employer-paid benefits (health, 401k) | ❌ No | Fringe benefits excluded |
Key rule on second jobs: Under Spence v. Industrial Commission and ICA interpretive guidance, wages from a concurrent employer are included only if your primary employer had knowledge of the second job at the time of injury. Get documentation of this immediately if it applies to you.
Step 3: Apply the Benefit Rate and Cap
Multiply your AWW by 0.6667 (66.67%). If the result exceeds $943.23, your benefit is capped at $943.23. The maximum is tied to the Arizona State Average Weekly Wage (SAWW) and adjusts annually each January 1.
Pre-Calculated Arizona Workers’ Comp Benefit Table (2026)
The table below shows your gross weekly benefit based on your average weekly wage. All figures use the exact 66.67% multiplier. Benefits at or above the cap are shown as the maximum.
| Average Weekly Wage | 66.67% Benefit | Capped? |
|---|---|---|
| $300 | $200.01 | No |
| $400 | $266.68 | No |
| $500 | $333.35 | No |
| $600 | $400.02 | No |
| $700 | $466.69 | No |
| $800 | $533.36 | No |
| $900 | $600.03 | No |
| $1,000 | $666.70 | No |
| $1,100 | $733.37 | No |
| $1,200 | $800.04 | No |
| $1,300 | $866.71 | No |
| $1,400 | $933.38 | No |
| $1,414.85 | $943.23 | ← Cap threshold |
| $1,500 | $943.23 | ✅ Capped |
| $1,600 | $943.23 | ✅ Capped |
| $1,700 | $943.23 | ✅ Capped |
| $1,800 | $943.23 | ✅ Capped |
| $1,900 | $943.23 | ✅ Capped |
| $2,000 | $943.23 | ✅ Capped |
| $2,200 | $943.23 | ✅ Capped |
| $2,400 | $943.23 | ✅ Capped |
| $2,600 | $943.23 | ✅ Capped |
| $2,800 | $943.23 | ✅ Capped |
| $3,000 | $943.23 | ✅ Capped |
Note: The cap threshold AWW of $1,414.85/week equates to approximately $73,572 annually. Workers earning above this wage absorb an increasing income replacement gap. A worker earning $3,000/week receives only 31.4% income replacement — not 66.67%.
What the Law Says vs. What Actually Happens
The Law Says:
Arizona law (A.R.S. § 23-1041) mandates that the carrier calculate AMW using all wages earned in the 30 days prior to injury. The ICA’s Form 101 (Employer’s Report of Injury) requires employers to self-report this wage data.
What Actually Happens:
Problem 1: The 30-day window gets cherry-picked.
Employers sometimes submit payroll records that don’t capture a full 30 days — especially for biweekly-paid workers. If you were paid twice in that window, two complete pay periods must be included.
Problem 2: Overtime gets stripped out.
Carriers frequently calculate AWW using base hourly rate × standard 40 hours, ignoring that you regularly worked 50- or 55-hour weeks. This is the single most common AWW error.
Problem 3: Bonuses disappear.
If you received a production bonus or attendance bonus in the 30 days before injury, it should be in your AMW. Insurance adjusters often exclude it without explanation.
How to catch it:
1. Pull your pay stubs for the 45 days before your injury date.
2. Add every dollar of gross earnings in that 30-day window manually.
3. Divide by 30 (days), multiply by 365, divide by 52. That is your AWW.
4. Compare to the AWW the carrier used on your Compensation Order.
5. If there is a discrepancy of more than $5/week, request a formal hearing before the ICA in writing within 90 days of receiving your Notice of Claim Status.
Real Case Example: Fluctuating Hours + Overtime
Worker Profile:
– Name: Miguel (composite example)
– Job: Warehouse supervisor, hourly
– Base rate: $22.00/hour
– Injury date: March 15
Miguel’s actual earnings in the 30 days before injury (Feb 13 – Mar 14):
| Pay Period | Regular Hours | OT Hours | Gross Pay |
|---|---|---|---|
| Feb 13 – Feb 26 | 80 hrs | 12 hrs | $2,024.00 |
| Feb 27 – Mar 12 | 80 hrs | 18 hrs | $2,178.00 |
| Mar 13 – Mar 14 (2 days) | 16 hrs | 0 hrs | $352.00 |
Total gross earnings in 30 days: $4,554.00
Carrier’s calculation (incorrect):
Carrier submitted $22.00 × 40 hrs × 4.33 weeks = AWW of $3,810.40/mo → AWW of $879.32/wk → Benefit: $586.17/wk
Correct calculation:
AMW = $4,554.00
AWW = $4,554.00 × 12 ÷ 52 = $1,050.92/wk
Benefit = $1,050.92 × 0.6667 = $700.66/wk
Difference: $114.49/week. Over a 16-week total disability period, that error costs Miguel $1,831.84.
Miguel filed a Request for Hearing with the ICA, produced his pay stubs, and received a corrected benefit calculation within 45 days.
Frequently Asked Questions
Q: Are Arizona workers’ comp benefits taxable?
Direct Answer: No. Arizona workers’ comp benefits are not subject to federal income tax under IRC § 104(a)(1), and Arizona follows federal treatment for state tax purposes.
Detailed Explanation: The IRS excludes workers’ compensation payments received under a workers’ compensation act from gross income. This applies to temporary disability, permanent disability, and vocational rehabilitation payments. There is one critical exception: if you are also receiving Social Security Disability Insurance (SSDI) simultaneously, an “offset” may apply, which can cause a portion of your SSDI to become taxable in a technical sense. Arizona does not require a separate state tax exemption filing for workers’ comp — the exclusion is automatic. Do not let anyone withhold taxes from your workers’ comp check. If your carrier withholds taxes, that is an error requiring immediate correction. This tax-free status is one of the few genuine financial advantages of the workers’ comp system over private disability insurance, which is often partially taxable.
Q: What is the waiting period before benefits begin in Arizona?
Direct Answer: Arizona has a 7-calendar-day waiting period. You receive no temporary disability benefits for the first 7 days of disability. If your disability extends beyond 14 days, the carrier must pay benefits retroactively back to day one.
Detailed Explanation: Per A.R.S. § 23-1062, the waiting period begins the day after the date of injury. If you miss 8 days of work, you are paid for day 8 only. If you miss 15 days of work, you are paid for all 15 days including the first 7. This retroactive trigger at 14 days is frequently misunderstood — many injured workers believe they permanently forfeit the first week of wages. That is only true for injuries with a total disability period of 13 days or fewer. Document every single day you are unable to work from day one. Your treating physician’s work restrictions are the legal basis for your disability period. Gaps in medical documentation equal gaps in your benefit entitlement.
Q: How does Arizona calculate benefits for part-time workers?
Direct Answer: Part-time workers use the same 30-day AMW formula. Arizona does not use a “full-time equivalent” adjustment. Your benefit is based on what you actually earned, not what a full-time worker would have earned.
Detailed Explanation: This creates a particularly difficult situation for part-time workers, who may find their workers’ comp benefit is a very small number. For example, a retail worker earning $600/month in a part-time role would have an AWW of approximately $138.46 and receive a benefit of roughly $92.31/week — far below any living standard. Arizona law does not provide a minimum benefit floor tied to full-time wages. The minimum benefit in Arizona is effectively $25 per week, established by administrative rule, though it can be lower in rare cases. Seasonal workers and workers whose schedules fluctuated significantly in the 30-day window should consult an attorney, as there may be arguments for using a longer wage history period to establish a fairer AWW in cases where the 30-day window is unrepresentative.
Q: Does Arizona workers’ comp cover partial wage loss if I return to light duty at lower pay?
Direct Answer: Yes. Arizona pays Temporary Partial Disability (TPD) at 66.67% of the difference between your pre-injury AWW and your light-duty earning capacity.
Detailed Explanation: If your doctor releases you to light duty and your employer offers a modified position paying less than your pre-injury wage, you are entitled to TPD benefits. The formula is: (Pre-injury AWW – Light Duty AWW) × 66.67% = TPD Benefit. For example, if your pre-injury AWW was $1,000 and your light-duty wage is $600/week, the wage loss is $400, and your TPD benefit is $266.68/week. This is paid in addition to your light-duty wages. Be cautious: if you refuse a reasonable light-duty offer, the carrier may suspend your TTD benefits entirely. “Reasonable” is defined partly by whether the offered work falls within your physician’s written restrictions. Always get your restrictions in writing from your doctor before any return-to-work conversation with your employer.
Q: How long can I receive temporary total disability benefits in Arizona?
Direct Answer: There is no statutory time limit on Temporary Total Disability (TTD) in Arizona, but benefits end when your condition reaches Maximum Medical Improvement (MMI) as declared by your treating physician or Independent Medical Examiner.
Detailed Explanation: Arizona is one of the more favorable states in this regard — some states cap TTD at 104 weeks. In Arizona, you can remain on TTD for as long as you are genuinely unable to work and have not reached MMI. Once MMI is declared, your claim transitions to either closure (if no permanent impairment) or a permanent disability evaluation. The Industrial Commission will schedule an independent evaluation if there is a dispute about MMI. Per ICA data, the average TTD claim in Arizona resolves within 6–18 months, though complex injuries involving surgery or neurological damage can extend significantly longer. The carrier can request an independent medical examination (IME) at any time to challenge your ongoing disability status. Do not miss IME appointments — failure to attend can result in benefit suspension.
Q: Can I negotiate my Average Weekly Wage calculation?
Direct Answer: You cannot “negotiate” it, but you can formally contest an incorrect AWW calculation through a Request for Hearing before the Industrial Commission of Arizona.
Detailed Explanation: The ICA’s protest and hearing process is the formal mechanism for correcting wage disputes. You have 90 days from the date of a Notice of Claim Status or Compensation Order to file a written protest. The ICA will schedule a hearing before an Administrative Law Judge (ALJ), where you present your pay stubs, W-2s, and any documentation supporting a higher AWW. This is not a negotiation — it is an adjudication. The burden is on you to
More Arizona Workers Comp Resources
See Also
- Arizona Workers’ Compensation: The Complete 2026 Guide
- Arizona Workers’ Comp for Security Guards: The Complete 2026 Guide
- Arizona Workers’ Comp for Home Health Aides: The Complete 2026 Guide
- Arizona Workers’ Comp for Healthcare Workers: The Complete 2026 Guide
- How Long Can You Receive Workers’ Comp Benefits in Arizona? The Complete Guide
Need help finding the right next step?
This article is general educational information, not personal advice. You can use our Contact and Feedback page to report a correction, suggest a topic, or—where available—optionally request a connection with an independent professional.