November 21, 2025 | SIBTF.org — California’s Division of Workers’ Compensation (DWC) has announced that temporary total disability (TTD) rates will increase for 2026, effective January 1. The minimum weekly TTD rates will rise from $252.03 to $264.61, while the maximum weekly rate will increase from $1,680.29 to $1,764.11.
These adjustments are required under Labor Code Section 4453(a)(10) and reflect the State Average Weekly Wage (SAWW) increase of 4.988% between 2024 and 2025. As a result, TTD rates for 2026 will be updated to ensure that employees receiving temporary total disability benefits are compensated fairly according to the latest wage data.
Employers, insurers, and claims administrators should review and apply the new TTD rates properly to maintain compliance and provide accurate payments to eligible workers.
How DWC Calculates the 2026 TTD Rates
The DWC uses the following formulas to determine minimum and maximum TTD rates:
Minimum TTD Rate:
Minimum earnings for 2025 × SAWW increase × 2/3 = $264.61 per week
Maximum TTD Rate:
Maximum earnings for 2025 × SAWW increase × 2/3 = $1,764.11 per week
Workers receiving life pension (LP) or permanent total disability (PTD) benefits with a date of injury on or after January 1, 2003, are also eligible for rate adjustments based on the SAWW, per Labor Code Section 4659(c).
What Workers and Employers Need to Know
- Workers: Employees receiving TTD benefits will see higher weekly payments starting January 1, 2026.
- Employers/Insurers: It is crucial to update payroll and benefit systems to reflect the new TTD rates.
- Medical-Legal Evaluators: Evaluators should ensure calculations for TTD, LP, and PTD benefits comply with the updated SAWW adjustments.
These changes emphasize the importance of understanding California TTD rates 2026 for anyone involved in workers’ compensation. Employees should review their benefit statements to confirm accurate payments, while employers and insurers must ensure compliance with updated rates to avoid penalties.
Medical-legal evaluators and claims administrators should also carefully verify calculations when processing TTD, LP, and PTD benefits under the new SAWW adjustments to ensure all workers receive proper compensation.
Understanding the State Average Weekly Wage (SAWW)
The SAWW is calculated using the average weekly wage paid to California employees covered by unemployment insurance, as reported by the U.S. Department of Labor. For the 12 months ending March 31, 2025, the SAWW increased from $1,704 to $1,789.
Learn more about SAWW here: U.S. Department of Labor – Unemployment Insurance Data.
Key Implications for 2026
- Workers on temporary total disability will receive higher benefits.
- Employers must ensure accurate TTD payments to comply with California law.
- Legal and medical evaluators should verify calculations for LP and PTD adjustments under SAWW.
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FAQs: 2026 TTD Rate Update
What are the new minimum and maximum TTD rates for 2026?
The minimum TTD rate is $264.61 per week, and the maximum TTD rate is $1,764.11 per week, effective January 1, 2026.
How is the TTD rate calculated?
The rate is based on the State Average Weekly Wage (SAWW) and adjusted according to the previous year’s earnings. The formula is: Minimum or Maximum Earnings × SAWW increase × 2/3.
Are LP and PTD benefits also adjusted?
Yes. Workers receiving life pension (LP) or permanent total disability (PTD) benefits for injuries after January 1, 2003, are eligible for rate adjustments based on the SAWW.
Where can I verify SAWW figures?
SAWW figures are published by the U.S. Department of Labor. You can access the official data here.
What is SIBTF?
The Subsequent Injuries Benefits Trust Fund (SIBTF) helps California workers who suffer a new workplace injury and already had a prior disability. It offers supplemental compensation when combined impairments severely limit earning capacity.