On January 1, 2026, the minimum and maximum temporary total disability (TTD) rates will increase, according to the California Division of Workers’ Compensation (DWC).
These rates apply when an employee is injured on the job. Workers’ compensation allows the employee to receive temporary disability benefits while being off work recovering from the injury.
Temporary disability payments are typically two-thirds of the pre-tax wages the employee will lose while recovering from a work-related injury, up to a statutory maximum amount (which are California’s TTD rates). Usually, those benefit amounts change every year because the TTD rate must be increased by an amount equal to the percentage increase in the State Average Weekly Wage (SAWW) compared to the prior year.
The SAWW is the average weekly wage in California paid to employees covered by unemployment insurance for the 12 months ending March 31 in the year preceding the injury, as reported by the U.S. Department of Labor. In the 12 months ending March 31, 2025, the SAWW increased from $1,704 to $1,789 — an increase of 4.98826 percent.
This means, beginning January 1, 2026:
- The minimum TTD rate will increase to $264.61 (from $252.03); and
- The maximum TTD rate will increase to $1,764.11 per week (from $1,680.29 per week).
Under Labor Code Section 4659(c), workers with a date of injury on or after January 1, 2003, who are receiving life pension (LP) or permanent total disability (PTD) benefits are also entitled to have their weekly LP or PTD rate adjusted based on the SAWW.
SAWW figures may be verified using the U.S. Department of Labor’s Unemployment Insurance Data website. However, due to the recent federal government shutdown, the 1st Quarter Unemployment Insurance Data Summary — which contains the SAWW — has not yet been posted.
Katie Culliton, Senior Editor, CalChamber
CalChamber members can read more about Benefits During Workers’ Compensation in the HR Library. Not a member? Learn how to power your business with a CalChamber membership.
