California approved an increase in its temporary total disability (TTD) rates in 2025. This change affects workers who suffer job-related injuries and cannot work while they recover. Workers and employers should understand how this change impacts payments and eligibility.
Why rates are increasing
California adjusts TTD benefits each year to reflect changes in the state’s average weekly wage (SAWW). The goal is to help injured workers cover lost income while they recover. In 2025, the increase follows a rise in the state’s overall wages, meaning higher benefits for workers receiving TTD.
TTD benefits provide two-thirds of a worker’s average weekly earnings, up to a maximum set by the state. Starting January 1, 2025, the minimum TTD rate rose to $252.03 per week, up from $242.86. The maximum rate will increase to $1,680.29 per week from the previous $1,619.15. These changes are based on a 3.77588% increase in California’s SAWW, which grew from $1,642 to $1,704 between the first quarters of 2023 and 2024.
Who the new rates affect
Any worker who suffers a job-related injury in 2025 and qualifies for TTD will receive benefits under the updated rates. With the new increase, injured workers receive higher payments, ensuring they can afford basic expenses while recovering. The minimum benefit also rose, helping lower-wage workers.
Those with existing claims may not see changes unless their payments are linked to annual adjustments. Of course, employers also experience an impact since higher benefits may affect workers’ compensation insurance costs.
Understanding these changes can help workers plan for financial stability after an injury. Staying aware of benefit increases can help both workers and businesses manage expectations and expenses in 2025.