Guidance on calculation of average weekly wage from the Compliance, Records and Training unit

Jan. 30, 2026

The Department of Labor and Industry’s Compliance, Records and Training unit shares average weekly wage calculation guidance. This is a high-level review and is not meant to cover all situations and types of employment. For most employment situations, the calculation of average weekly wage is detailed in Minn. Stat. § 176.011, subd. 8a.    

Full-time regularly scheduled employees  

For full-time regularly scheduled employees with one employer, the calculation for weekly wage under Minn. Stat. § 176.011, subd. 18 is the daily wage multiplied by the number of days and fractional days per week the employee is normally scheduled for in the business of the involved employer. Minn. Stat. § 176.011, subd. 8a defines daily wage as “the daily wage of the employee in the employment engaged in at the time of injury but does not include tips and gratuities paid directly to an employee by a customer of the employer and not accounted for by the employee to the employer.” In the alternative, the hourly rate of pay multiplied by the hours scheduled per week can be used to determine average weekly wage.  

Please review statute and case law to determine if other income is to be included.   

Other than regularly scheduled employees (e.g. part-time, irregularly scheduled or difficult to calculate)  

For employees with irregular or difficult to determine wages or who work part time, the calculation is still the daily wage multiplied by the number of days and fractional days per week the employee is normally scheduled for in the business of the involved employer; however daily wage and number of days worked per week are calculated differently. Minn. Stat. § 176.011, Subd. 8a provides “the daily wage shall be computed by dividing the total amount of wages, vacation pay, and holiday pay the employee actually earned in such employment in the last 26 weeks, by the total number of days in which such wages, vacation pay, and holiday pay was earned,…” The number of days worked per week for irregular or part time work is calculated by dividing the total number of days actually worked (including days of paid vacation and holidays) in the last 26 weeks by the number of weeks the employee actually worked (including weeks of paid vacation and holidays) during that period. 

Other considerations  

There are many other considerations in the review and calculation of average weekly wage. The following list details some of those considerations: 

• multiple employers; 

• self-employment; 

• piece rate employees; 

• overtime; 

• minors and apprentices; 

• seasonal employees; and 

• volunteers. 

In summary, the correct calculation method for average weekly wage depends upon the employee’s status on date of injury. The 26-week averaging method where all earnings over the 26 weeks pre-dating the injury are added together and then divided by 26 is not an appropriate calculation of average weekly wage for most employment situations.  

The Basic adjusters’ training guide provides additional guidance regarding calculation of indemnity benefits. 

For questions regarding this information, contact the Workers’ Compensation Help Desk at 651-284-5005 (press 3), 800-342-5354 (press 3) or helpdesk.dli@state.mn.us.