What does the Average Weekly Wage (AWW) take into account?

The Average Weekly Wage (AWW) is a crucial calculation in workers' compensation that represents an employee's typical earnings over a specified period, usually calculated from the weeks or pay periods leading up to a work-related injury or illness. This figure is intended to fairly represent an employee's overall income, reflecting not only a base salary but also any additional earnings such as overtime, bonuses, and other forms of compensation. By averaging these amounts over a designated timeframe, AWW provides a comprehensive view of an employee’s financial situation, which is essential for determining the appropriate level of benefits during their recovery and inability to work. This holistic approach ensures that employees receive compensation that reflects their true earnings potential, rather than just a limited part of their income.