We wanted to remind California Employers that the California Division of Workers’ Compensation (DWC) has announced the new Temporary Total Disability (TTD) rates for 2025.

• Starting January 1, 2025:
  
  • The minimum TTD rate will increase from $242.86 to $252.03 per week
  • The maximum TTD rate will increase from $1,619.15 to $1,680.29 per week.

These adjustments are based on the increase in the State Average Weekly Wage (SAWW), which rose by 3.77% from $1,642 to $1,704 for the 12 months ending March 31, 2024.

• The SAWW is used to calculate the minimum and maximum TTD rates to ensure they reflect changes in average wages.

The calculation of the 2025 SAWW increase is as follows:
(2024 SAWW – 2023 SAWW)/2023 SAWW
$1704 – $1642 = 62/1642 = 3.77588%

The calculation of minimum TTD rate for 2025 is as follows:
Minimum earnings for 2025 x SAWW increase x 2/3 = minimum TTD rate for 2025
$364.29 x 1.0377588 = $378.05 minimum TTD earnings x 2/3 =$252.03 minimum rate for 2025

The calculation of maximum TTD rate for 2025 is as follows:
Maximum earnings for 2025 x SAWW increase x 2/3 = maximum TTD rate for 2025
$2428.72 x 1.0377588 = $2,520.43 maximum TTD earnings x 2/3 = $1680.29 maximum rate for 2025

For additional information visit the following pages:

• CA DWC Announces Temporary Total Disability Rates for 2025
• December 2022: DWC Announces Temporary Total Disability Rates for 2023 (VensureHR)
• DOL Unemployment Insurance Data

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