Temporary and Permanent disability payments to California’s workers’ comp claimants will increase by 3.8% effective January 1st, 2025. That translates to employers paying a weekly maximum payout of $1,680.29 compared to $1,619.15 currently. The weekly minimum will climb from $242.86 to $252.03 weekly.
The increase results from the U.S. Department of Labor’s release of updated wage data for California. It shows that the State Average Weekly Wage (SAWW) increased from $1,642 to $1,704 as of March 31st, 2024. The nearly 3.8% increase factors into the maximum temporary total disability (TTD) and permanent total disability (PTD) workers’ comp benefits that employers will pay in 2025.
Under Labor Code section 4453(a)(10), changes in the minimum and maximum TTD rates are tied to the percentage increase in the SAWW as compared to the prior year. For 2024, the SAWW decreased from the prior year. However, there was no comparable decrease in the minimum and maximum TTD rates for 2024.
Life pension or PTD benefits recipients will also see an increase in their weekly payments. Section 4659(c) applies to workers with dates of injury on or after January 1st, 2003.
For comparison’s sake, the Social Security Administration announced a 2.5% increase for American retirees in 2025.