The Division of Workers’ Compensation (DWC) has announced the 2025 Temporary Total Disability (TTD) rates, which will take effect January 1, 2025. These updated rates will increase the minimum weekly payment from $242.86 to $252.03 and the maximum weekly payment from $1,619.15 to $1,680.29.
Why the Rates Are Changing
This annual adjustment is based on a 3.78% increase in California’s State Average Weekly Wage (SAWW), as reported earlier this year. The SAWW reflects the average wages earned by workers statewide and serves as the benchmark for calculating benefit changes.
Under state law, TTD benefits must be updated each January to reflect wage growth, ensuring that injured workers receive fair compensation during recovery. This approach helps benefits keep pace with inflation and the rising cost of living, so that wage replacement remains meaningful and consistent year after year.
Impact Beyond TTD Payments
These updated rates will also affect certain long-term benefits for qualifying workers injured on or after January 1, 2003:
- Life Pension (LP) benefits: For those with permanent partial disabilities exceeding specific thresholds.
- Permanent Total Disability (PTD) benefits: For workers permanently unable to return to any type of work.
The new rates ensure consistency across benefit categories, offering stronger financial protection to workers while keeping employer liabilities predictable.
Why This Matters
For injured workers, the higher rates provide critical wage replacement at a time when living costs continue to rise, helping them meet essential expenses such as housing, food, and medical care during recovery. This adjustment ensures that benefits better reflect today’s economic realities, reducing the financial strain caused by being out of work.
For employers, claims administrators, and insurers, these updates signal the need to prepare payroll and claims systems before the January 2025 rollout. Timely adjustments will help maintain compliance, avoid payment delays, and ensure that all benefit calculations reflect the updated TTD rates from day one.
Official Guidance
The DWC recommends that all stakeholders — including workers, employers, and claims managers — review the updated figures and adjust benefit calculations accordingly. More details on California’s workers’ compensation benefit rates are available through the U.S. Department of Labor.
For more details, visit the U.S. Department of Labor’s website.
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FAQs: 2025 Temporary Total Disability (TTD) Rates
What are the 2025 TTD rates in California?
The 2025 Temporary Total Disability rates in California range from a minimum of $252.03 per week to a maximum of $1,680.29 per week, effective January 1, 2025.
How are the rates calculated each year?
The rates are adjusted annually based on the percentage change in California’s State Average Weekly Wage (SAWW). For 2025, a 3.78% increase in the SAWW led to higher benefit rates.
Who is eligible to receive TTD benefits in 2025?
You may be eligible for 2025 Temporary Total Disability (TTD) benefits if you suffer a work-related injury or illness that prevents you from working temporarily and your claim is approved under California’s Workers’ Compensation system.
How long can I receive TTD benefits in California?
In California, Temporary Total Disability (TTD) benefits are generally available for up to 104 weeks within a five-year period from the date of injury, though certain severe conditions may allow longer durations.
Do TDD benefits cover partial work restrictions?
The benefits are only for workers who cannot work at all due to their injury. If you can work with restrictions and earn wages, you may instead qualify for Temporary Partial Disability (TPD) benefits rather than full TTD.
Are the benefits taxable income?
Temporary Total Disability (TTD) benefits are generally not considered taxable income under federal or California state law, as they are treated as wage replacement rather than earned wages.