In Texas, workers' compensation wage-replacement benefits are administered under the Texas Workers' Compensation Act (Tex. Lab. Code § 408.103 and § 408.121) and overseen by the Texas Department of Insurance, Division of Workers' Compensation (TDI-DWC).

When an injured employee cannot work due to an on-the-job injury, they may be eligible for Temporary Income Benefits (TIBs). Under Texas Labor Code § 408.103, TIBs equal 70% of the difference between the employee's average weekly wage (AWW) and any post-injury earnings. For lower-wage employees earning less than $10.00 per hour prior to the injury, the statutory replacement rate increases to 75% for the first 26 weeks. The Average Weekly Wage is computed from gross earnings in the 13 consecutive weeks immediately preceding the date of injury.

Weekly payments are subject to statutory boundaries. For 2024, the maximum weekly benefit in Texas is $1,166.00, and the minimum weekly benefit is $174.00. Texas imposes a 7-day waiting period; benefits are not paid for the first 7 calendar days of disability unless the disability extends for 14 calendar days or longer, at which point benefits are paid retroactively back to the eighth day of disability.

TIBs continue until the worker reaches Maximum Medical Improvement (MMI) or until the statutory cap of 104 weeks is reached, whichever occurs first. Once MMI is certified, any ongoing disability is evaluated under Impairment Income Benefits (IIBs). Under Texas Labor Code § 408.121, each percentage point of whole-person impairment entitles the worker to 3 weeks of benefits at 70% of AWW, capped at the statutory maximum.

Important Limitations: This calculator computes educational estimates for temporary income benefits based on standard formula inputs. It does not calculate contested medical benefits, Supplemental Income Benefits (SIBs), Lifetime Income Benefits (LIBs), or negotiated compromise settlement agreements.