Quick Answer: Benefit Levels in Michigan
Michigan workers' compensation replaces about 66.67% of an injured worker's average weekly wage (AWW), up to a state‑set maximum of $1,300 per week (as of 2024). Permanent disability benefits range from 5% to 100% of the AWW, depending on injury severity. Medical expenses are covered in full, with a $1,000 cap for each separate injury unless a higher limit is ordered by a medical review board.
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Understanding the Core Components
Workers' compensation in Michigan is divided into three main benefit categories:
- Temporary Total Disability (TTD): Pays when you cannot work at all.
- Temporary Partial Disability (TPD): Pays when you can work but earn less.
- Permanent Disability (PD): Ongoing compensation for lasting impairments.
Temporary Total Disability (TTD)
TTD benefits replace two‑thirds of your AWW, calculated from the highest 52‑week average of earnings in the five years before injury. The maximum weekly payment is $1,300 (2024). Benefits continue until you return to work or reach maximum medical improvement (MMI).
Temporary Partial Disability (TPD)
If you return to work at reduced earnings, you receive the difference between the TTD rate and your actual earnings, up to the $1,300 cap. Example: AWW = $1,200; you return at $800/week → TPD = $800 (66.67% of AWW) – $800 = $0, so you receive no TPD. If you earn $500/week, you'd receive $300/week.
Permanent Disability (PD) Benefits
After MMI, a physician assigns a disability rating (5‑100%). The weekly PD payment equals the rating percentage multiplied by the AWW (capped at $1,300). For instance, a 30% rating on a $1,200 AWW yields $360/week.
PD Benefit Table
| Disability Rating | Weekly Benefit (AWW $1,200) | Notes |
|---|---|---|
| 5% | $60 | Minimum payable rating |
| 25% | $300 | Common for moderate injuries |
| 50% | $600 | Significant loss of function |
| 100% | $1,200 | Total loss of earning capacity |
Medical Expense Coverage
All reasonable medical, surgical, and rehabilitation costs are covered. Michigan imposes a $1,000 per‑injury cap unless a physician‑review board approves a higher amount. Prescription drugs, physical therapy, and assistive devices are included.
Additional Benefits
- Death Benefits: 100% of the deceased worker's AWW to dependents, up to the weekly cap.
- Vocational Rehabilitation: Funding for training or job placement when you cannot return to your previous occupation.
How Benefits Are Calculated
The formula uses the worker's Average Weekly Wage (AWW):
Benefit = AWW × 66.67% (capped at $1,300)
For PD, replace 66.67% with the disability rating percentage.
Common Questions
- What if my earnings exceed the cap? You receive the maximum $1,300 weekly; excess earnings are not compensated.
- Can benefits be reduced? Yes, if you return to work and earn wages, TPD offsets the compensation.
- How long do benefits last? TTD/TPD continue until return to work or MMI; PD lasts for the remainder of the worker's life, unless a settlement is reached.