Indiana Workers’ Comp Weekly Benefit Calculator: The Definitive Guide (2026)
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.
Quick Answer Box
In Indiana, workers’ comp pays 66.67% (two-thirds) of your average weekly wage (AWW), up to the current state maximum per week. For 2024, the Indiana maximum weekly benefit for Temporary Total Disability (TTD) was $1,183, tied directly to the State Average Weekly Wage (SAWW) as published annually by the Indiana Department of Workforce Development. The 2026 figure is updated each year; always verify the current SAWW at in.gov. Your minimum benefit depends on your actual AWW — there is no fixed floor for most TTD claims. The governing statute is Indiana Code § 22-3-3-22.
📌 From Shane: What 66.67% of Your Income Actually Feels Like
When my injury happened, I thought “two-thirds of my pay” sounded reasonable. It isn’t — not when your mortgage, car payment, and utilities were all built around 100% of your income.
Here’s what nobody tells you: that 66.67% is calculated on your average weekly wage, not your best weeks. If your employer cherry-picks a slow pay period to calculate your AWW, you could be looking at 60% or less of what you actually earned before you got hurt.
I made three mistakes in my first month. I trusted my employer’s AWW calculation without verifying it. I didn’t track my overtime history. And I didn’t know that my part-time second job should have been included.
This guide exists so you don’t repeat those mistakes. Run your own numbers. Then verify your employer’s numbers. The difference can be hundreds of dollars per week for months or years.
The Exact Calculation Formula
Step 1: Determine Your Average Weekly Wage (AWW)
Under IC § 22-3-3-22, Indiana calculates your AWW using the 52 weeks immediately preceding your injury date.
AWW = Total gross earnings in the 52 weeks before injury ÷ 52
If you worked fewer than 52 weeks for that employer, divide total earnings by the actual number of weeks worked.
Step 2: Apply the Benefit Rate
Weekly Benefit = AWW × 0.6667
If the result exceeds the state maximum (tied to the SAWW), your benefit is capped at the SAWW.
What Counts in Your AWW?
| Income Type | Included in AWW? | Notes |
|---|---|---|
| Regular base wages | ✅ Yes | Always included |
| Overtime pay | ✅ Yes | Gross overtime, not just the premium |
| Shift differentials | ✅ Yes | Part of gross earnings |
| Production/performance bonuses | ✅ Yes | If regular and recurring |
| One-time signing bonus | ❌ No | Not part of regular wage |
| Tips (reported) | ✅ Yes | Included if part of W-2 wages |
| Second job / concurrent employment | ✅ Yes | Included if injury affects ability to work that job too |
| Severance pay | ❌ No | Not earned wages during the period |
| Employer-paid health insurance | ❌ No | Not cash wages |
Source: IC § 22-3-3-22; Indiana Worker’s Compensation Board interpretations.
Key Rule on Second Jobs: Indiana courts have upheld inclusion of concurrent employment wages when the injury directly impairs your capacity to perform both jobs. Document all W-2 and 1099 income.
Pre-Calculated Benefit Table: Weekly Wages $300–$3,000
All figures rounded to the nearest dollar. Benefits exceeding the state maximum ($1,183 for 2024; verify current SAWW for 2026) are capped at that maximum.
| Gross Weekly Wage | AWW × 66.67% | Weekly Benefit Paid | At State Cap? |
|---|---|---|---|
| $300 | $200 | $200 | No |
| $400 | $267 | $267 | No |
| $500 | $333 | $333 | No |
| $600 | $400 | $400 | No |
| $700 | $467 | $467 | No |
| $800 | $533 | $533 | No |
| $900 | $600 | $600 | No |
| $1,000 | $667 | $667 | No |
| $1,100 | $733 | $733 | No |
| $1,200 | $800 | $800 | No |
| $1,300 | $867 | $867 | No |
| $1,400 | $933 | $933 | No |
| $1,500 | $1,000 | $1,000 | No |
| $1,600 | $1,067 | $1,067 | No |
| $1,700 | $1,133 | $1,133 | No |
| $1,773 | $1,182 | $1,183 | At Cap |
| $1,800 | $1,200 | $1,183 | Capped |
| $1,900 | $1,267 | $1,183 | Capped |
| $2,000 | $1,333 | $1,183 | Capped |
| $2,100 | $1,400 | $1,183 | Capped |
| $2,200 | $1,467 | $1,183 | Capped |
| $2,300 | $1,533 | $1,183 | Capped |
| $2,400 | $1,600 | $1,183 | Capped |
| $2,500 | $1,667 | $1,183 | Capped |
| $2,600 | $1,733 | $1,183 | Capped |
| $2,700 | $1,800 | $1,183 | Capped |
| $2,800 | $1,867 | $1,183 | Capped |
| $2,900 | $1,933 | $1,183 | Capped |
| $3,000 | $2,000 | $1,183 | Capped |
⚠️ Verify the current SAWW. Indiana updates the maximum benefit every year based on the SAWW published by the Indiana Department of Workforce Development. The $1,183 figure reflects the 2024 rate. Confirm the current figure before relying on capped calculations.
What the Law Says vs. What Actually Happens
The Law Says:
Use 52 weeks of gross wages immediately before the injury.
What Employers and Insurers Actually Do:
Based on patterns reported by Indiana workers’ comp attorneys and injured worker advocates, here are the most common AWW manipulation tactics:
1. Using only base pay, excluding overtime.
An employer pulls your base hourly rate × 40 hours and ignores the 12 hours per week of overtime you worked for 11 months. This can reduce your AWW by $200–$400/week.
How to catch it: Request your full payroll history (pay stubs or W-2) for the 52 weeks before your injury. Calculate the total yourself. Divide by 52.
2. Using a short window of low-income weeks.
If you were on unpaid leave for 3 weeks before your injury, an insurer might use only 49 weeks and cherry-pick a slow-work period.
How to catch it: Indiana courts require using “time actually worked.” If there are gaps, the calculation must reflect your actual earning pattern, not your slowest stretch.
3. Excluding the second job.
Your injury stops you from working your warehouse job AND your weekend delivery route. The insurer calculates AWW only on the primary job.
How to catch it: Document that your injury prevents you from performing the second job. Gather pay records from both employers and present them together.
4. Using net pay instead of gross pay.
Your benefit is based on gross wages, not take-home pay. If an adjuster is applying the 66.67% to your after-tax income, the calculation is wrong.
Real Case Example: Fluctuating Hours + Overtime
Worker Profile:
– Name: Marcus (composite example)
– Job: Warehouse foreman, Indianapolis
– Injury date: March 15, 2025
– Base rate: $22/hour
– Works 40–52 hours/week depending on season
Step 1: Gather 52 Weeks of Earnings
| Quarter | Total Gross Earnings |
|---|---|
| Q2 2024 (Apr–Jun) | $7,920 (slow season, avg 38 hrs/wk) |
| Q3 2024 (Jul–Sep) | $10,560 (peak season, avg 50 hrs/wk) |
| Q4 2024 (Oct–Dec) | $9,240 (avg 45 hrs/wk) |
| Q1 2025 (Jan–Mar 15) | $4,620 (partial quarter, 10.5 weeks) |
Note: Q1 is 10.5 weeks (Jan 1 – Mar 15). Total weeks = 13 + 13 + 13 + 10.5 = 49.5 weeks worked.
Step 2: Calculate AWW
Total gross earnings = $7,920 + $10,560 + $9,240 + $4,620 = $32,340
AWW = $32,340 ÷ 49.5 = $653.33/week
Step 3: Calculate Weekly Benefit
$653.33 × 0.6667 = $435.60/week
What the insurer tried to pay:
The insurer used only Q1 2025 (the slow, partial quarter): $4,620 ÷ 10.5 = $440 AWW × 0.6667 = $293.35/week
The difference: $435.60 − $293.35 = $142.25/week underpayment
Over a 26-week TTD period, that error costs Marcus $3,698.50.
Frequently Asked Questions
Q: How is my AWW calculated if I just started the job and haven’t worked 52 weeks?
A: Indiana Code § 22-3-3-22 addresses this directly. If you worked for the same employer for fewer than 52 weeks before your injury, your AWW is calculated by dividing your total earnings by the number of weeks you actually worked — not 52. So if you worked 18 weeks and earned $14,400, your AWW is $14,400 ÷ 18 = $800. If that’s still not representative of your earning capacity (e.g., you were in training at reduced pay), a workers’ comp judge has discretion to look at what a similarly situated employee in the same role earns. Document your actual pay rate and any planned raises in writing. This matters enormously for high-wage earners who were recently hired.
Q: Are workers’ comp benefits in Indiana taxable?
A: No. Indiana workers’ comp benefits — including TTD, TPD, PTD, and PPI payments — are exempt from federal income tax under 26 U.S.C. § 104(a)(1) and are also not subject to Indiana state income tax. This means your 66.67% benefit carries more real purchasing power than 66.67% of taxable wages suggests. However, if you are also receiving Social Security Disability Insurance (SSDI) simultaneously, a coordination rule called the “workers’ comp offset” can reduce your SSDI payment so that combined benefits don’t exceed 80% of your pre-injury average current earnings. This is a critical planning point if you’re applying for both. (Source: IRS Publication 525; SSA Program Operations Manual System DI 52150.)
Q: What happens to my benefits if I go back to work part-time during my claim?
A: Indiana recognizes Temporary Partial Disability (TPD) benefits for this situation. Under IC § 22-3-3-9, if you return to lighter duty or part-time work and earn less than your pre-injury wages, you receive 66.67% of the difference between your pre-injury AWW and your current earning capacity. Formula: TPD = (Pre-Injury AWW − Current Earning Capacity) × 0.6667. Example: Pre-injury AWW = $1,000. You return part-time earning $600/week. TPD = ($1,000 − $600) × 0.6667 = $266.68/week. Never return to work — even light duty — without first confirming the wage impact in writing with your adjuster. Returning to any work without proper documentation can be used to terminate your TTD benefits.
Q: Can my employer reduce or stop my benefits if I refuse a light-duty job offer?
A: Yes — and this is one of the most common ways TTD benefits are terminated in Indiana. Under IC § 22-3-3-11, if your employer offers you a position within your documented medical restrictions and you refuse it without valid medical justification, the insurer can petition to suspend your TTD benefits. The job offer must be genuine — meaning it must match your physician-imposed restrictions exactly, be at a real workplace location, and pay wages. Employers sometimes offer light duty that technically exceeds your restrictions, then claim you refused. Document every light-duty offer in writing. Have your treating physician review the job description and formally confirm whether it is within your restrictions before you accept or decline.
Q: What is the maximum duration of Temporary Total Disability (TTD) benefits in Indiana?
A: Indiana does not set a hard calendar cutoff for TTD benefits the way some states
More Indiana Workers Comp Resources
See Also
- Indiana Workers’ Compensation: The Complete Guide for Injured Workers (2026)
- Indiana Workers’ Comp for Construction Workers: The Complete 2026 Guide
- Indiana Workers’ Comp for Security Guards: The Complete 2026 Guide
- Indiana Workers’ Comp for Home Health Aides: The Complete 2026 Guide
- How Long Can You Receive Workers’ Comp Benefits in Indiana? (Complete Guide)
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