How the 2025 SAWW Increase Impacts Workers Comp Benefits

How the 2025 Increase in State Average Weekly Wage Affects Your Workers’ Comp Benefits

If you suffered a work injury in California, your benefits depend on more than just your condition. Each year, the state updates the State Average Weekly Wage (SAWW). In 2025, that increase could mean higher payments for thousands of injured workers across Sacramento and Northern California. Whether you’re recovering from a serious construction injury or dealing with repetitive strain in a warehouse, it’s essential to understand how the new SAWW 2025 rate impacts your claim.

At the Law Offices of Mehlhop & Vogt, we understand how confusing California’s workers’ compensation system can be. Statewide changes like this often create more questions than answers. We’ll explain what the SAWW increase means for your temporary and permanent disability payments. We’ll also show who qualifies for the higher rate and how to make sure your payments reflect the current law.

If your injury happened on the job and you’re unsure whether the 2025 SAWW applies to your case, don’t guess. Contact us today for a free consultation. You won’t pay anything unless we win your case.

What Is the State Average Weekly Wage and Why It Matters

The State Average Weekly Wage, or SAWW, is a figure used by the California Division of Workers’ Compensation to adjust certain workers’ comp benefits each year. It reflects the average weekly wage earned by workers statewide during the previous year. When the SAWW goes up, disability benefit payments for injured workers can increase as well.

Each July, the California Department of Industrial Relations calculates the new SAWW using data from the U.S. Department of Labor. This figure directly affects benefits like temporary disability (TD) and permanent disability (PD). For injuries that occur after January 1, 2013, permanent disability payments are automatically adjusted based on changes in the SAWW.

This annual adjustment helps ensure that injured workers don’t fall behind as the cost of living rises. When wages across the state increase, workers receiving disability checks should see their benefit rates rise too. That’s why it’s important to understand how the SAWW works—and how it may apply to your case.

If you’re not sure whether your benefits are based on the correct SAWW rate, we can help. Our team will review your claim and make sure your payments reflect the law. Learn more about our experience on the Our Firm page or visit our FAQs to get quick answers about your rights.

What Is the New SAWW Rate for 2025

In 2025, California raised the State Average Weekly Wage to $1,741.48, reflecting a 4.7% increase from the 2024 rate of $1,662.64. As a result, this change boosts benefit payments for injured workers receiving temporary or permanent disability support.

Under state law, most injured employees receive two-thirds of their average weekly wages during temporary disability, capped at a maximum. Thanks to the updated SAWW, the 2025 maximum weekly benefit for temporary disability now equals $1,741.48. In addition, the minimum weekly benefit also increased to $348.30.

This new rate applies to injuries that occur on or after January 1, 2025. However, workers with permanent disability from earlier injuries may also see small increases if their cases qualify for annual SAWW adjustments. California applies these updates automatically for certain injuries that happened after 2013.

If you’re not sure how the 2025 SAWW affects your current or future benefits, our legal team can review your case. At Mehlhop & Vogt, we help injured workers secure every dollar they’re entitled to. Therefore, we encourage you to visit our Workers’ Compensation page to learn more about how we fight for your full benefits.

How SAWW 2025 Affects Temporary Disability Benefits

Temporary disability benefits replace part of your income when a work-related injury prevents you from doing your regular job. You receive payments every two weeks so you can focus on recovery without worrying about your finances. In California, your average weekly earnings and the current SAWW determine how much you receive.

What Is the New Maximum for Temporary Disability in 2025?

Because California raised the SAWW in 2025, the maximum weekly benefit for temporary total disability (TTD) also went up. Starting January 1, 2025, eligible workers can receive up to $1,741.48 per week. This reflects a 4.7% increase from 2024. If you earned a high wage before your injury and your accident occurred in 2025, you may now qualify for a larger weekly check.

Temporary partial disability (TPD) also adjusts based on your reduced work hours or modified job duties. For example, if your doctor limits you to part-time light duty, TPD makes up the difference in earnings. The SAWW still plays a role in these calculations. As a result, the 2025 increase can help you receive more support while you heal.

How the Date of Injury Affects Your Rate

Your date of injury decides which SAWW rate applies. If your injury occurred before January 1, 2025, your benefits follow the older 2024 rate. If you were injured on or after that date, you qualify for the new higher limits. That small detail can make a big difference in your financial recovery.

We often hear from workers who get paid less than they should. That happens when insurance companies use outdated rates or miscalculate wages. If your check seems low, reach out to our team at Mehlhop & Vogt. We’ll review your benefits and explain whether the 2025 SAWW should apply. You can also learn more in our guide to the temporary disability benefit increases for 2025.

How SAWW 2025 Impacts Permanent Disability Payments

Permanent disability (PD) benefits compensate injured workers for lasting impairments that affect their ability to earn a living. Unlike temporary disability, these payments can continue long after your medical treatment ends. In California, the value of PD benefits depends on several factors—including the State Average Weekly Wage.

If your injury occurred on or after January 1, 2013, California law allows annual adjustments to your permanent disability payments based on changes to the SAWW. As a result, the 2025 SAWW increase can raise your weekly compensation, even if your injury happened in a prior year. For example, if you suffered a workplace injury in 2020 and you’re still receiving PD, your payments may increase slightly to reflect the latest SAWW.

However, the increase doesn’t apply to every case. Only workers with dates of injury in 2013 or later qualify for these automatic annual adjustments. If you were injured before 2013, your PD payments likely remain fixed. That’s why it’s important to review your benefit statement and understand how the state applies the updated SAWW to your claim.

Understanding the Financial Impact

Even a small change in the weekly rate can make a meaningful difference over time. For example, a worker receiving $290 per week in PD payments may now receive $303 per week due to the SAWW adjustment. Over the life of a long-term claim, that increase could amount to hundreds or even thousands of extra dollars.

We help injured workers ensure their permanent disability benefits reflect the most accurate and up-to-date calculations. If you’re unsure whether your PD payments increased with the 2025 SAWW, we’re happy to review your case. Learn more about how we help clients with long-term impairments on our Workers’ Compensation page or meet the attorneys who advocate for them—Bart Mehlhop and Adam Vogt.

Who Benefits the Most From the 2025 SAWW Increase

The 2025 increase in the State Average Weekly Wage doesn’t impact all workers equally. Some injured employees will see a more noticeable boost in their benefits, depending on their income level, date of injury, and type of disability claim. Understanding where you fall in that mix can help you plan for what to expect—or what to challenge.

High-Wage Workers With 2025 Injuries

If you earned a high weekly wage before your injury and the injury occurred in 2025, the updated SAWW likely increases your temporary disability benefits. California caps TTD payments based on the SAWW, so workers with higher pre-injury earnings now qualify for larger weekly checks. This is especially helpful for employees in industries like construction, trucking, or healthcare, where wage levels often exceed earlier benefit maximums.

Workers Receiving Long-Term Permanent Disability

Employees with permanent impairments from injuries that occurred in 2013 or later also benefit from the 2025 SAWW increase. If you’re still receiving PD payments, California’s automatic annual adjustments should apply the higher rate to your ongoing benefits. Although these increases may seem small week to week, they can add up significantly over the lifetime of your claim.

Injured Workers in Physically Demanding Jobs

Employees in high-risk fields—such as warehouse labor, manufacturing, or construction—often experience more severe injuries that require longer recovery times. These workers tend to rely heavily on temporary and permanent disability benefits. Therefore, the SAWW increase provides meaningful financial relief while they’re unable to work or facing permanent limitations.

If you’re not sure whether the SAWW increase applies to your claim, it’s worth having a professional review your case. You can visit our testimonials page to see how we’ve helped workers across Northern California secure the benefits they deserve. You can also check out our resource links to learn more about wage rates and benefit updates.

Does the 2025 SAWW Apply to My Claim

Whether the 2025 SAWW increase affects your workers’ compensation benefits depends on the date of your injury and the type of disability you’re receiving. California law uses specific rules to determine when the updated wage rate applies—and understanding those rules can help you avoid missing out on money you’re owed.

Temporary Disability and Injury Date

For temporary disability benefits like TTD or TPD, the SAWW rate used is based on the date of injury. If your injury happened before January 1, 2025, your benefits are calculated using the SAWW in effect at that time. Even if you’re still receiving temporary disability payments in 2025, the newer, higher rate usually won’t apply to your case. On the other hand, workers injured on or after January 1, 2025, qualify for the updated 2025 maximum and minimum rates.

Permanent Disability and Ongoing Adjustments

Permanent disability benefits follow a different rule. If your injury occurred on or after January 1, 2013, your weekly PD payments can be adjusted each year to reflect changes in the SAWW. That means the 2025 SAWW increase may apply to your permanent disability checks, even if your injury occurred years ago. This automatic adjustment helps ensure your long-term benefits keep pace with inflation and rising wages.

How to Find Out Which Rate Applies

To determine whether you’re receiving the correct rate, look at the date of your injury, the type of benefit you’re receiving, and your payment notices. Unfortunately, errors are common. Some insurance administrators apply outdated figures, while others overlook automatic updates. If you feel unsure or believe your checks are too low, don’t wait to ask questions.

We’ve helped many clients correct underpaid benefits after reviewing their case details. Visit our FAQs page for common questions about SAWW and claim timelines, or contact our team directly to schedule a free consultation. We’re here to make sure your benefits reflect what the law actually allows.

Get Help Understanding or Appealing Your Workers’ Comp Benefits

Understanding how the 2025 SAWW increase affects your workers’ compensation benefits can feel overwhelming, especially when you’re focused on recovery. You shouldn’t have to figure it out alone—or accept a benefit amount that doesn’t reflect current law. That’s where we come in.

At the Law Offices of Mehlhop & Vogt, we’ve represented injured workers across Sacramento and Northern California since 1987. Our attorneys, including Bart Mehlhop and Adam Vogt, focus exclusively on California workers’ compensation law. We know how to spot payment errors, correct them, and fight for the full benefits you deserve.

If your claim was denied, your checks seem low, or you simply want to make sure your payments reflect the updated SAWW, we’re here to help. There’s no cost to speak with us. In fact, you don’t pay anything unless we win your case.

Contact us today to schedule your free consultation. You can also explore our full range of legal services, including workers’ compensation, Social Security Disability, and SIBTF claims. We speak Spanish and proudly serve workers from all industries and backgrounds. Let us help you move forward with the support you need and the benefits you’re entitled to.

Know Your Rights and Protect Your Benefits Under the 2025 SAWW

The 2025 increase in California’s State Average Weekly Wage gives many injured workers an opportunity to receive higher compensation—but only if the correct rate is applied. Whether you’re recovering from a recent injury, dealing with long-term permanent disability, or still unsure about your eligibility, it’s essential to understand how the SAWW affects your case.

We’ve seen how small changes in the law can make a big difference in people’s lives. That’s why we take the time to review every detail and fight to ensure your benefits reflect the most accurate and up-to-date standards under California workers’ compensation law.

Don’t leave money on the table. If you believe your payments are incorrect—or you just want peace of mind—let our experienced team at Mehlhop & Vogt Law Offices review your case. You can start with a no-cost consultation, and you never pay any fees unless we win. Contact us today and let us help you get the full support you’re entitled to under the 2025 SAWW increase.

 

Contact Sacramento Workers Compensation Attorney

Workers Compensation Lawyer in Sacramento CAHave you suffered a serious work injury? Contact a Sacramento workers compensation lawyer at the Mehlhop & Vogt Law Offices for FREE consultation about your California workers compensation claim benefits. We’ve been helping injured workers since 1987 and are certified by the State Bar of California.

Give us a call at (916) 930-9675 to speak with a Sacramento Workers Compensation Lawyer Today.

 

TELL US ABOUT YOUR CASE

REQUEST YOUR FREE, NO-OBLIGATION CONSULTATION WITH AN ATTORNEY

    CATEGORIES

    CONTACT ATTORNEY TODAY

    REQUEST YOUR FREE CASE CONSULTATION WITH AN ATTORNEY