Why Does Average Weekly Wage Matter?

Your average weekly wage is determined by adding up the previous year’s salary and dividing by 52 weeks. If you have worked for your employer less than a year but more than a few weeks, you simply add up the total amount that you received during the entire period of your employment and divide by the total number of weeks that you worked. When adding up your weeks, it is important to note that overtime, additional commissions, and other benefits are included in your average weekly wage; it is not limited to a standard 40-hour week. If you have weeks during which you received very little or no salary for an unusual reason, do not include those weeks in your calculation as they may unfairly bring your average wage down.

If you have only worked for your employer for a few days, the law states that your average weekly wage should be calculated based on the average wages of another employee in a similar position. If these calculations are done by the insurer, double check that the employee they choose to compare is in fact comparable in position and responsibilities so that you are compensated fairly.