January 5, 2026 | SIBTF.org — Effective January 1, 2026, California updated the Temporary Total Disability (TTD) rates, directly impacting wage replacement benefits for injured workers across the state. This adjustment is part of the annual recalibration designed to ensure compensation reflects current income levels and economic conditions.
For both employees and claims administrators, understanding these updates is critical to ensuring accurate payments and compliance with California workers’ compensation law.
New TTD Rates Effective January 2026
The California Division of Workers’ Compensation (DWC) announced the following minimum and maximum TTD rates for 2026:
- Minimum TTD Rate: $264.61 per week
- Maximum TTD Rate: $1,764.11 per week
These rates apply to all claims that are ongoing or filed on or after January 1, 2026. For employers, this update can affect reserves, budgets, and claim settlement calculations. For injured workers, the adjustment ensures wage replacement remains fair and consistent with inflation and wage growth.
How TTD Benefits Are Calculated
TTD benefits are calculated based on pre-injury earnings using a percentage determined by California law:
- For most employees, the TTD benefit is two-thirds of the worker’s average weekly wage (AWW).
- Certain high-wage or low-wage earners may have adjustments due to statutory minimums or maximums.
Example Calculation – Mid-Wage Worker
- Pre-injury weekly earnings: $1,200
- TTD benefit (2/3 of $1,200): $800 per week
Since $800 falls between the 2026 minimum ($264.61) and maximum ($1,764.11), this is the final TTD payment.
Example Calculation – Low-Wage Worker
- Pre-injury weekly earnings: $300
- TTD benefit (2/3 of $300): $200 per week
Since $200 is below the 2026 minimum TTD rate of $264.61, the worker would receive the minimum $264.61 per week.
This demonstrates how the minimum rate protects low-wage earners, ensuring they receive meaningful income replacement during recovery.
Impact on Low-Wage Earners
The increase in the minimum TTD rate to $264.61 per week is especially significant for low-wage employees. Workers earning close to California’s minimum wage—now $16.90 per hour as of January 1, 2026—will see a proportional boost in weekly compensation.
- Example: A full-time worker earning $16.90/hour (40 hours/week) has pre-injury weekly earnings of $676.
- TTD (2/3 of $676) = $450.67, which is above the minimum, but the increase in the minimum ensures that even part-time low-wage workers receive a fair replacement benefit.
By aligning TTD rates with wage growth and minimum wage adjustments, California ensures temporary disability compensation remains both equitable and sustainable.
Practical Tips for Claims Administrators
Claims administrators play a vital role in implementing TTD updates accurately. Here are key best practices for 2026:
- Verify Wage Information – Ensure the employee’s pre-injury earnings are documented correctly to avoid underpayment or overpayment.
- Apply Minimum/Maximum Caps – Check that calculated TTD does not exceed the 2026 statutory maximum ($1,764.11) or fall below the minimum ($264.61).
- Monitor Ongoing Claims – Any active TTD claims may need recalculations if prior rates were incorrect or if benefits carry over into the new year.
- Communicate Changes to Workers – Proactively inform employees about updated TTD amounts to prevent confusion and disputes.
Reference Official DWC Tables – Use the official California DWC TTD rate table for accurate calculations: DWC – Temporary Total Disability Rates.
Why Accurate TTD Administration Matters
Accurate TTD calculations are crucial to:
- Protect workers’ financial stability during recovery
- Reduce claim disputes and litigation risk
- Maintain compliance with California workers’ compensation regulations
- Avoid underfunding reserves or mismanaging employer obligations
For insurers and self-insured employers, miscalculations can create long-term liability and administrative complications. Staying up to date with statutory rate changes is essential for both compliance and operational efficiency.
Looking Ahead
While TTD rates are updated annually, stakeholders should also track other 2026 workers’ compensation changes, including:
- SIBTF reform initiatives expected in the January 2026-27 state budget
- New occupational disease presumptions for certain firefighters under SB 230
- Minimum wage adjustments that may affect indemnity calculations
Keeping informed ensures both employers and injured workers understand their rights and responsibilities under California law.
Subscribe to SIBTF.org for timely updates on workers’ compensation, SIBTF reforms, and rate adjustments.
Read More from SIBTF.org:
- California Signals Major SIBTF Overhaul After AB 1329 Veto, Reforms Expected in 2026
- Court of Appeal Reaffirms Burden on SIBTF in Benefit Reduction Disputes
- Understanding UEBTF and SIBTF: How California’s Special Funds Protect Injured Workers
FAQs: About California TTD Rates for 2026
Who qualifies for TTD benefits?
Workers temporarily unable to perform their job due to a workplace injury are generally eligible under California law.
Do the 2026 TTD rates apply to ongoing claims?
Yes, any claim active on or after January 1, 2026, should be adjusted to reflect the new minimum and maximum rates.
How are TTD benefits calculated for low-wage employees?
The benefit is 2/3 of pre-injury earnings, but it cannot fall below the 2026 minimum of $264.61/week, ensuring adequate income replacement.
Where can I find official TTD rate tables?
The California Division of Workers’ Compensation maintains the latest rates: DWC – Temporary Total Disability Rates.