Spendable Base Wage

Effective January 1st 2022 for new injuries, intermediate spendable base wage (SBW) calculations will be discontinued; the compensation rate will equal 62% of the claimant’s average weekly wage. This change applies to both (a.) new injuries occurring on or after January 1st 2022, and (b.) post-2021 recurrences of previous injuries where the claimant returned to work for an intermediate period of 26 or more weeks. All ongoing, pre-2022 claims will continue to use the spendable base wage formula established for the relevant base year. For pre-2022 injuries where it applies, a worker's base weekly compensation rate is calculated as seventy-five percent (75%) of the worker's spendable earnings or spendable base wage capped at a maximum weekly rate. Spendable base wage approximates a worker's earnings less withholdings. Withholding amounts take into account the maximum number of personal exemptions allowed to the employee, not the employee's actual net earnings.

Select the year to view the spendable base wage information (PDF)

The Division of Workers' Compensation publishes information annually on spendable base wage calculations. The worker's date of incapacity determines which set of calculations to use.

For more information, please contact the Education Unit at:
 (401) 462-8100
[email protected]