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California’s 2025 minimum and maximum temporary total disability rates will increase on Jan. 1, 2025, the Division of Workers’ Compensation announced.

The minimum TTD rate will increase from $242.86 to $252.03, and the maximum TTD rate will increase from $1,619.15 to $1,680.29 per week, according to the DWC.

Labor Code Section 4453(a) (10) requires the maximum and minimum weekly earnings on which the TTD is based to be increased by an amount equal to percentage increase in the State Average Weekly Wage as compared to the prior year.

The SAWW is defined as the average weekly wage paid to employees covered by unemployment insurance as reported by the U.S. Department of Labor for California for the 12 months ending March 31 in the year preceding the injury. In the 12 months ending March 31, 2024, the SAWW increased from $1,642 to $1,704, up 3.77%.

The calculation of the 2025 SAWW increase is: (2024 SAWW – 2023 SAWW)/2023 SAWW: $1704 – $1642 = 62/1642 = 3.77%.

The calculation of minimum TTD rate for 2025 is: Minimum earnings for 2025 x SAWW increase x 2/3 = minimum TTD rate for 2025: $364.29 x 1.0377588 = $378.05 minimum TTD earnings x 2/3 =$252.03 minimum rate for 2025

The calculation of maximum TTD rate for 2025 is: Maximum earnings for 2025 x SAWW increase x 2/3 = maximum TTD rate for 2025: $2428.72 x 1.0377588 = $2,520.43 maximum TTD earnings x 2/3 = $1680.29 maximum rate for 2025

Under Labor Code Section 4659(c), workers with a date of injury on or after Jan. 1, 2003 receiving life pension (LP) or permanent total disability (PTD) benefits are also entitled to have their weekly LP or PTD rate adjusted based on the SAWW.

Topics California Workers' Compensation New Markets