How the LHWCA Average Weekly Wage Is Calculated
If a dock, shipyard, or harbor injury has put you out of work, almost every dollar of your Longshore Act compensation traces back to a single number: your average weekly wage. Getting that number right is the difference between full benefits and quiet, long-term underpayment.
In short: Under the LHWCA, your average weekly wage (AWW) is your average annual earnings divided by 52, computed under 33 U.S.C. § 910, and your weekly check is two-thirds (66.67%) of that AWW. For the year beginning October 1, 2025, benefits are capped at $2,082.70 per week and floored at $520.68.
This article is for informational purposes only and does not constitute legal advice. Benefit calculations turn on the specific facts of your work history and injury. To understand your own claim, consult a licensed maritime attorney.
Key Facts at a Glance
- The average weekly wage is the foundation of every LHWCA benefit; it equals one fifty-second of your average annual earnings (Source: 33 U.S.C. § 910).
- Compensation for total disability is paid at 66 2/3 percent of your AWW (Source: 33 U.S.C. § 908).
- For October 1, 2025 through September 30, 2026, the National Average Weekly Wage is $1,041.35 (Source: DOL Bulletin 25-01).
- The maximum weekly benefit is twice the NAWW, or $2,082.70, and the minimum for total disability is $520.68 (Source: DOL Bulletin 25-01).
- Section 10 provides three methods, § 910(a), (b), and (c), depending on how steadily you worked the year before the injury (Source: 33 U.S.C. § 910).
- The maximum rate that applies is the one for the fiscal year you first became disabled, not when your award issues (Source: Roberts v. Sea-Land Services, 566 U.S. 93 (2012)).
- A 6-day worker’s annual earnings are 300 times the average daily wage; a 5-day worker’s are 260 times (Source: 33 U.S.C. § 910(a)).
Worried your average weekly wage was set too low? A miscalculated AWW can cost an injured worker tens of thousands of dollars over the life of a claim.
Why Does Your Average Weekly Wage Decide Everything?
Injured longshore and harbor workers quickly learn that the Longshore Act is more generous than state workers’ compensation, but also more technical. The single most consequential figure in the entire claim is the LHWCA average weekly wage, because it is multiplied through every benefit you will ever receive: temporary disability checks, permanent disability awards, scheduled awards for a lost limb, and survivor benefits for a family.
That is also why it is the figure insurers most often get wrong, sometimes by leaving out overtime, container royalties, or a second job, and sometimes by choosing a calculation method that quietly shrinks the number. Because benefits are paid weekly for months, years, or a lifetime, even a small error compounds into a large loss. This guide walks through exactly how the AWW is calculated under the Longshore Act, what your weekly check actually comes to, the current dollar caps, and the mistakes that leave workers underpaid.
One clarification up front: LHWCA workers are not Jones Act seamen, so they do not receive maintenance and cure. The Longshore Act is a separate federal compensation system for dock, shipyard, and harbor workers, with its own wage formula set by statute.
What Is the Average Weekly Wage Under the LHWCA?
Your LHWCA average weekly wage is the legally defined measure of what you were earning at the time of injury, and it is the basis on which all compensation is computed. By statute, the AWW is one fifty-second part of your average annual earnings (Source: 33 U.S.C. § 910(d)). Everything else in your claim is a percentage or multiple of that figure.
The Act does not simply use the wages on your last few pay stubs. It builds an annualized earnings figure first, using one of three methods under Section 10, then divides by 52. The goal Congress wrote into the statute is to capture your true earning capacity at the time of injury, which for maritime work that is seasonal, weather-dependent, or overtime-heavy is often higher than a naive 52-week paystub average would show (Source: 33 U.S.C. § 910).
How Is the AWW Calculated Under Section 10(a)?
Section 10(a) applies when you worked in the same employment during substantially the whole of the year before your injury. It builds annual earnings from your average daily wage: 300 times the average daily wage for a six-day worker, or 260 times the average daily wage for a five-day worker (Source: 33 U.S.C. § 910(a)).
Worked example (six-day worker). A longshoreman averaged $250 per day and worked a six-day schedule for the full year. Average annual earnings = 300 × $250 = $75,000. AWW = $75,000 ÷ 52 = $1,442.31. His total-disability check is 66.67% of that, or $961.54 per week.
The same worker on a five-day schedule would have annual earnings of 260 × $250 = $65,000, an AWW of $1,250.00, and a weekly check of $833.33. Whether you are classified as a five-day or six-day worker therefore changes the result substantially, and it is a frequent point of dispute.
When Does Section 10(b) Apply?
Section 10(b) applies when you did not work substantially the whole of the prior year in that employment, for example because you were newly hired, switched trades, or were out for a stretch. Instead of your own spotty record, the AWW is built from the earnings of a comparable employee, someone of the same class working substantially the whole year in the same or similar work at the same or a neighboring place, again using the 300 or 260 multiplier (Source: 33 U.S.C. § 910(b)).
The point of Section 10(b) is fairness: a worker who was injured three months into a job should not have a low AWW merely because the year before the injury contained months when he was not yet in that line of work. The comparable-employee figure stands in for what a full year of that work would have produced.
What Is the Section 10(c) Catch-All Method?
Section 10(c) is the flexible fallback used when neither 10(a) nor 10(b) can reasonably and fairly be applied. It directs the calculation to a sum that reasonably represents your annual earning capacity, taking into account your actual earnings, the nature of your work, and other relevant factors (Source: 33 U.S.C. § 910(c)). It is the method that matters most for maritime workers with irregular schedules.
Worked example (Section 10(c)). A seasonal dockworker earned $48,000 over roughly nine months of intense work and was unemployed the rest of the year. A literal 52-week average would understate his real earning capacity. Under 10(c), an adjudicator can build an AWW that reflects what he actually earns when working, and can fold in overtime and a documented second maritime job, producing a materially higher AWW than a flat annual-divided-by-52 figure would.
Because 10(c) is discretionary, it is where strong wage evidence pays off: pay records, employer wage statements, union records of container royalties, and proof of a second job can all raise the figure. It is also where an underprepared claim gets shortchanged.
How Does Your AWW Become a Weekly Benefit Check?
Once the AWW is fixed, your compensation rate for total disability is two-thirds of it, 66 2/3 percent, subject to the statutory maximum and minimum (Source: 33 U.S.C. § 908). Temporary total disability and permanent total disability are both paid at this rate; partial-disability benefits are two-thirds of the difference between your AWW and your post-injury wage-earning capacity.
Worked example (partial disability). A worker with a $1,500 pre-injury AWW returns to light duty earning $900 per week. The wage loss is $600, and the benefit is two-thirds of that, or $400 per week, paid on top of the $900 he now earns.
This two-thirds figure is why the AWW is so consequential. Every $100 of AWW that is wrongly left out costs about $67 per week, which over a multi-year claim runs into five figures.
What Are the Maximum and Minimum Compensation Rates?
The Longshore Act caps and floors the weekly benefit by reference to the National Average Weekly Wage, which the Secretary of Labor sets each October 1. The maximum compensation rate is twice the NAWW; the minimum for total disability is half the NAWW, unless your own AWW is lower, in which case you receive your full AWW (Source: 33 U.S.C. § 906). The current figures are below.
| Figure (Oct 1, 2025 – Sep 30, 2026) | Amount | Authority |
|---|---|---|
| National Average Weekly Wage (NAWW) | $1,041.35 | (Source: DOL Bulletin 25-01) |
| Maximum weekly compensation (200% of NAWW) | $2,082.70 | (Source: 33 U.S.C. § 906(b)) |
| Minimum weekly compensation (50% of NAWW) | $520.68 | (Source: DOL Bulletin 25-01) |
| Prior-year NAWW (Oct 2024 – Sep 2025) | $999.55 | (Source: DOL Bulletin 25-01) |
| Section 10(f) cost-of-living increase this year | 4.18% | (Source: DOL Bulletin 25-01) |
Worked example (high earner, capped). A senior crane operator has an AWW of $3,300. Two-thirds would be $2,200.22, but the maximum rate is $2,082.70, so his check is capped at $2,082.70. Any AWW above about $3,124 hits the cap. At the other end, a worker whose AWW is $480, below the $520.68 floor, receives his full $480, because the minimum cannot exceed your actual AWW.
Worried your average weekly wage was set too low? A miscalculated AWW can cost an injured worker tens of thousands of dollars over the life of a claim.
Which Fiscal Year’s Maximum Rate Applies to Your Claim?
The maximum rate is not frozen at your injury date or floated to your award date; it is set by the fiscal year in which you were “newly awarded compensation.” In Roberts v. Sea-Land Services, the Supreme Court held that a worker is newly awarded compensation when he first becomes disabled and entitled to benefits, regardless of whether or when a formal compensation order issues (Source: Roberts v. Sea-Land Services, 566 U.S. 93 (2012)).
In practice, the NAWW for the fiscal year your disability began fixes your maximum. The Department of Labor built its current maximum and minimum rate regulations around Roberts and the related circuit decisions, including Boroski v. Dyncorp International, 700 F.3d 446 (11th Cir. 2012), which addressed how the annual Section 10(f) adjustment interacts with the cap (Source: Federal Register, DOL final rule). For permanently and totally disabled workers, that Section 10(f) adjustment raises the benefit each year.
How Is AWW Used for Scheduled Permanent Disability Awards?
For permanent partial disability to certain body parts, the Act pays a “scheduled” award: a fixed number of weeks at two-thirds of your AWW, regardless of actual wage loss (Source: 33 U.S.C. § 908(c)). The schedule sets the weeks; your AWW sets the weekly dollar amount, so the same injury is worth more to a higher-earning worker.
| Scheduled loss (total) | Weeks of compensation | Authority |
|---|---|---|
| Arm | 312 weeks | (Source: 33 U.S.C. § 908(c)) |
| Leg | 288 weeks | (Source: 33 U.S.C. § 908(c)) |
| Hand | 244 weeks | (Source: 33 U.S.C. § 908(c)) |
| Foot | 205 weeks | (Source: 33 U.S.C. § 908(c)) |
| Eye | 160 weeks | (Source: 33 U.S.C. § 908(c)) |
| Loss of hearing, both ears | 200 weeks | (Source: 33 U.S.C. § 908(c)) |
Worked example (scheduled arm). A worker with an AWW of $1,442.31 (weekly rate $961.54) who loses an arm receives 312 weeks × $961.54 = about $300,000. A 20% impairment of that arm is 20% of 312 weeks, or 62.4 weeks, for roughly $60,000. A higher AWW raises both figures proportionally.
How Does AWW Affect Survivor and Death Benefits?
When a work injury causes death, survivor benefits are also built on the worker’s AWW. A surviving spouse with no children receives 50% of the AWW; a spouse with one or more children receives 50% plus more, up to a combined maximum of 66 2/3 percent of the AWW, and the Act also pays funeral expenses up to $3,000 (Source: 33 U.S.C. § 909).
Worked example (survivors). With an AWW of $1,442.31, a surviving spouse alone receives 50%, or $721.16 per week; a spouse with a child receives the 66.67% maximum, or $961.54 per week, plus up to $3,000 in funeral costs. As with disability benefits, these amounts are subject to the same annual maximum tied to the NAWW.
What Wages Count Toward Your Average Weekly Wage?
The AWW is meant to capture real earning capacity, so it reaches well beyond base hourly pay. Overtime, holiday and shift premiums, vacation pay, container royalties common in longshore work, the reasonable value of board and lodging where provided, and tips can all count (Source: 33 U.S.C. § 910). Under Section 10(c), documented earnings from a concurrent second job can be included where leaving them out would understate your capacity.
Edge cases matter here. Workers covered by the Defense Base Act overseas have their benefits computed under these same LHWCA wage rules (Source: DOL Division of Longshore); you can read more about who is covered by the Defense Base Act. Occupational diseases that surface after retirement use a special timing rule under Section 10(d)(2), and minors whose wages would be expected to rise can have that growth considered (Source: 33 U.S.C. § 910).
What Mistakes Cause an AWW to Be Set Too Low?
The most common way workers lose money is an AWW that was set too low at the start and never challenged. Recurring errors include counting base pay only and omitting overtime and royalties; treating a six-day worker as a five-day worker; using a flat 52-week average for a seasonal worker when Section 10(c) would yield more; and ignoring a documented second job.
Each of these is contestable. The Act requires a method that fairly reflects earning capacity, and where the employer’s figure does not, an injured worker can present wage evidence and argue for the correct method or the correct multiplier (Source: 33 U.S.C. § 910). Beyond the comp claim itself, a longshore worker hurt by a vessel’s negligence may also have a separate Section 905(b) vessel-negligence claim, which is not capped the way comp benefits are.
How Long Do You Have to File, and Can the AWW Be Corrected?
Deadlines are strict. You generally must give written notice of injury within 30 days and file your claim within one year (within two years for occupational diseases), measured from when you knew or should have known the injury was work-related (Source: USDOL, LHWCA full text). Missing these windows can bar an otherwise valid claim.
An AWW that was set too low can often be addressed while the claim is open or through the statutory modification process, but the safest course is to get the figure right from the start. For the full benefit-claim process, see our guide on LHWCA benefits and how to file, and for how these federal benefits compare with a state system, see LHWCA versus state workers’ compensation.
Which Section 10 Method Applies to Your Situation?
Use this decision aid to see which calculation method the Act points to, based on how you worked in the year before your injury. The right method is often the difference between a fair AWW and a low one.
| Your work pattern in the prior year | Method | How the AWW is built | Authority |
|---|---|---|---|
| Worked substantially the whole year, six-day schedule | § 910(a) | 300 × average daily wage, ÷ 52 | (Source: § 910(a)) |
| Worked substantially the whole year, five-day schedule | § 910(a) | 260 × average daily wage, ÷ 52 | (Source: § 910(a)) |
| Did not work substantially the whole year (new hire, gap) | § 910(b) | Comparable employee’s earnings, ÷ 52 | (Source: § 910(b)) |
| Seasonal, intermittent, multi-job, or rising wages | § 910(c) | Sum reasonably reflecting annual earning capacity | (Source: § 910(c)) |
| Occupational disease arising after retirement | § 910(d)(2) | Special post-retirement timing rule or the NAWW | (Source: § 910(d)(2)) |
Frequently Asked Questions
How is average weekly wage calculated under the Longshore Act?
Your AWW is your average annual earnings divided by 52. Annual earnings are built under one of three methods in Section 10: for a steady full-year worker, 300 times the average daily wage for a six-day worker or 260 times for a five-day worker; for an irregular work history, a comparable worker’s earnings (10(b)) or a figure that fairly reflects your earning capacity (10(c)) (Source: 33 U.S.C. § 910).
What is the maximum LHWCA compensation rate for 2025-2026?
For October 1, 2025 through September 30, 2026, the maximum weekly compensation rate is $2,082.70, which is twice the National Average Weekly Wage of $1,041.35. The minimum rate for total disability is $520.68 (Source: DOL Bulletin 25-01).
What percentage of my wages does the Longshore Act pay?
Total disability is paid at two-thirds, 66 2/3 percent, of your average weekly wage, subject to the maximum and minimum. Partial disability pays two-thirds of the difference between your pre-injury AWW and your post-injury wage-earning capacity (Source: 33 U.S.C. § 908).
Does my average weekly wage include overtime and second jobs?
Yes. The AWW is meant to reflect real earning capacity, so overtime, premiums, vacation pay, container royalties, and the value of board and lodging count, and under Section 10(c) a documented concurrent second job can be included. Leaving these out is one of the most common ways an AWW is set too low (Source: 33 U.S.C. § 910). If you think yours was understated, you can request a free case review to have it checked.
What is the National Average Weekly Wage (NAWW)?
The NAWW is a figure the Secretary of Labor sets each year, effective October 1, based on national earnings of production and nonsupervisory workers. It drives the LHWCA maximum (twice the NAWW) and minimum (half the NAWW). For 2025-2026 it is $1,041.35 (Source: DOL Bulletin 25-01).
How much does the Longshore Act pay for permanent total disability?
Permanent total disability is paid at 66 2/3 percent of your AWW for life, subject to the maximum, and it is increased each year by the Section 10(f) cost-of-living adjustment, which is 4.18% for the year beginning October 1, 2025 (Source: DOL Bulletin 25-01).
Which year’s maximum rate applies to my claim?
The maximum is set by the fiscal year in which you first became disabled and entitled to benefits, not the year your award is issued. The Supreme Court settled this in Roberts v. Sea-Land Services (Source: Roberts v. Sea-Land Services, 566 U.S. 93 (2012)).
Can my average weekly wage be recalculated if it was set too low?
Often, yes. While a claim is open, and through the Act’s modification process, an incorrect AWW can be challenged with proper wage evidence and the correct Section 10 method. Acting early is best, because benefits are paid weekly and underpayments are hard to recover once a case closes (Source: 33 U.S.C. § 910).
What if I worked less than a year before my injury?
A short work history does not lower your AWW by default. Section 10(b) uses a comparable full-year worker’s earnings, and Section 10(c) builds a figure that fairly reflects your earning capacity, so a new hire is not penalized for not yet having a full year on the job (Source: 33 U.S.C. § 910).
The Bottom Line on Your Average Weekly Wage
Under the Longshore Act, your LHWCA average weekly wage is the engine of your entire claim: annual earnings divided by 52, computed under one of three Section 10 methods, then paid out at two-thirds, within the current $520.68 floor and $2,082.70 ceiling. Because every benefit flows from that one number, a low AWW set early and left unchallenged is the quiet way injured maritime workers lose real money (Source: 33 U.S.C. § 910).
If you are not sure your AWW reflects your overtime, your royalties, your schedule, or your true earning capacity, it is worth having the figure checked before benefits are locked in.
Worried your average weekly wage was set too low? A miscalculated AWW can cost an injured worker tens of thousands of dollars over the life of a claim.
References and Sources
- 33 U.S.C. § 910 – Determination of pay (average weekly wage). Cornell Legal Information Institute.
- 33 U.S.C. § 906 – Compensation (maximum and minimum rates). Cornell Legal Information Institute.
- 33 U.S.C. § 908 – Compensation for disability (66 2/3% rate; scheduled awards). Cornell Legal Information Institute.
- 33 U.S.C. § 909 – Compensation for death (survivor benefits). Cornell Legal Information Institute.
- DOL OWCP, LHWCA Bulletin No. 25-01 – NAWW, minimum/maximum rates, and Section 10(f) adjustment effective October 1, 2025.
- Roberts v. Sea-Land Services, Inc., 566 U.S. 93 (2012). U.S. Supreme Court (via Justia).
- DOL, Division of Longshore and Harbor Workers’ Compensation (DLHWC).
- Federal Register, LHWCA Maximum and Minimum Compensation Rates final rule (implementing Roberts; Boroski v. Dyncorp Int’l, 700 F.3d 446 (11th Cir. 2012)).
- 33 U.S.C. § 902(19) – Definition of national average weekly wage. Cornell Legal Information Institute.
- USDOL OALJ Law Library – Longshore and Harbor Workers’ Compensation Act, 33 U.S.C. 901-950 (full text).
Editorial Standards and Review
This article was researched and written by the editorial team at OffshoreInjuryHelp.com and last reviewed in June 2026. Every statute, rate, and figure was verified against a primary source at the time of writing, including the U.S. Code, the U.S. Department of Labor’s Office of Workers’ Compensation Programs, and the U.S. Supreme Court, each linked inline and listed above. We follow a strict zero-hallucination policy: no figure or legal rule is published unless it traces to a verifiable primary source. OffshoreInjuryHelp.com is not a law firm and does not provide legal advice; we connect injured maritime workers with experienced maritime attorneys. Read more about our editorial standards.
