Benefits and money

How temporary disability pay is calculated in California

By the CalCompGuide editorial team · Last updated November 2026 · How we write and check guides

Step 1: Figure out your average weekly wage

Average weekly earnings are meant to reflect your real earning capacity at the time of injury (LC §4453). That includes more than your base hourly rate:

• regular wages and salary;
• overtime you regularly worked;
• tips, commissions and bonuses;
• the value of meals, lodging or other pay in kind;
• wages from a second job at the time of injury (concurrent employment).

For steady full-time work, AWW is usually your hourly rate times your normal weekly hours. For irregular, seasonal or part-time work, the insurer often averages earnings over a longer period, commonly the 52 weeks before the injury. If your rate looks low, ask how it was calculated and send pay stubs for overtime and second jobs.

Step 2: Multiply by two-thirds and apply the limits

Example: You earn $24 an hour for 40 hours, plus 5 hours of regular overtime at $36. Your AWW is $960 + $180 = $1,140. Two-thirds is $760.00 a week, or $1,520.00 every two weeks.

The limits are tied to the date of injury, not today's date, but for long-running cases the rate can increase after two years from the injury date to reflect growth in the state average weekly wage (2026 SAWW: $1,789). These limits are published in the DWC benefits table.

Partial temporary disability

If you can work with restrictions and your employer gives you light duty at lower pay, you get temporary partial disability: generally two-thirds of the difference between your pre-injury AWW and what you earn now. Example: AWW $1,140, now earning $600 a week on modified duty: TPD ≈ 2/3 × $540 = $360 a week.

When the first check is due

• The first payment is due within 14 days after your employer knew of the injury and your disability (LC §4650), then every two weeks.
• The first 3 days off work aren't paid unless you're off more than 14 days or hospitalized overnight.
• A late payment is automatically increased by 10% (LC §4650(d)), and unreasonable delays can bring a larger penalty (delays and penalties).

Is TD taxable?

No. Workers' comp benefits for a work injury are not taxable income under federal or California income tax. That's why two-thirds of gross pay often comes closer to your normal take-home pay than people expect.

This guide is general information, not legal advice. Every case is different. For free help from the state, call the DWC Information & Assistance unit at 1-800-736-7401.