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Average Daily Wage

Definition - What does Average Daily Wage mean?

Individuals injured from the negligent actions of another person, business, or entity may be entitled to compensation which includes pain and suffering, paid reimbursement for medical care, and lost wage compensation. Average daily wage is a calculation method used to determine the individual's average daily earnings and how much the worker may lose for each given day they are unable to work due to their injuries.

Calculating average daily wage

If you are an hourly worker and you would like to calculate your average daily wage you will need to get a copy of your time sheet from your employer or payroll department. Multiply how many hours you work by your hourly pay rate. For example, if you work 10 hours on Tuesday and you earn $10 per hour, you would multiply 10 hours X $10 = $100. One hundred dollars is your average daily wage for that Tuesday. Your average daily wage for hourly workers could change, however, if you work a different number of hours each day.

For salaried workers you will need to find out your annual salary. If you received $60,000 per year you would divide this number by the number of pay periods in a pay cycle. For instance, $60,000/52 weeks = $1153. This is your average weekly wage. Then divide $1153 by the number of days in your pay cycle $1153/5 which is $230.60 to get your average daily wage.

Remember, wage loss is just one type of loss suffered after a serious personal injury. If you are unable to work your old job and have to return to part-time work there could also be substantial loss. Before accepting any type of compensation after an injury claim it is important to talk to a personal injury lawyer.

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