What is the significance of the “average weekly wage” in calculating benefits?

The average weekly wage is a crucial factor in the calculation of benefits that an injured worker will receive during their recovery period. This wage serves as the baseline for determining compensation rates after an injury or illness occurs, as benefits are typically expressed as a percentage of the injured worker's average weekly earnings prior to the incident. This percentage varies depending on the type of benefit, such as temporary total disability or permanent disability. Therefore, accurately assessing the average weekly wage is essential in ensuring that the worker receives an appropriate and fair amount of financial support to aid in their recovery and compensate for lost earnings.

This concept underlines the overall goal of workers' compensation—to provide financial protection and support to individuals who cannot work due to work-related injuries or illnesses. Without establishing the average weekly wage, it would be impossible to fairly determine how much financial assistance a worker is entitled to, thereby jeopardizing their recovery process and economic stability.