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Average Weekly Wage Formula:
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The Average Weekly Wage (AWW) is a calculation that determines the average amount of earnings per week over a specified period. It is commonly used for workers' compensation claims, unemployment benefits, and various financial assessments.
The calculator uses the AWW formula:
Where:
Explanation: This simple division provides the average earnings per week, which is essential for various financial and legal calculations.
Details: Accurate AWW calculation is crucial for determining benefit amounts, assessing financial stability, and making informed employment-related decisions. It serves as a benchmark for various compensation calculations.
Tips: Enter total wages in your local currency and the number of weeks in the calculation period. Both values must be positive numbers greater than zero for accurate results.
Q1: What time period should I use for AWW calculation?
A: Typically, use the 52 weeks prior to the date of injury or claim, but specific requirements may vary by jurisdiction and purpose.
Q2: What should be included in total wages?
A: Include all taxable earnings, bonuses, overtime, and commissions. Exclude reimbursements and non-taxable benefits unless otherwise specified.
Q3: How does AWW differ from regular weekly pay?
A: AWW provides an average over time, accounting for fluctuations in earnings, while regular weekly pay shows current earnings for a specific period.
Q4: Can I use partial weeks in the calculation?
A: Yes, you can use decimal values for weeks (e.g., 2.5 weeks) to account for partial periods in your calculation.
Q5: What if I have irregular income?
A: AWW is particularly useful for irregular income as it smooths out fluctuations to provide a consistent weekly average for comparison and calculation purposes.