Reaching the Limit: How Texas Workers' Compensation Maximums Affect You

Understanding Texas Workers' Compensation Maximum Benefits

If you run a business in Texas, you already know we Texans like to do things our own way—workers' compensation included! Unlike many other states, Texas gives private employers the unique choice of whether or not to participate in the workers' compensation system at all. Believe it or not, according to the Texas Department of Insurance, roughly 28% of private employers opt-out, accounting for about 18% of the private workforce across the state.

But for those of us who do choose to protect our teams by participating, understanding exactly how texas workers compensation maximum benefits work is essential. The Texas Department of Insurance, Division of Workers' Compensation (TDI-DWC), determines these benefit limits annually, basing their calculations on something called the State Average Weekly Wage (SAWW).

Texas offers several different types of workers' comp benefits, each designed for a specific purpose. Temporary Income Benefits (TIBs) step in if an employee suffers a work-related injury or illness and temporarily loses income while recovering. Impairment Income Benefits (IIBs) provide financial support to employees who've reached maximum medical improvement (MMI) but still have a permanent impairment.

Additionally, workers may qualify for Supplemental Income Benefits (SIBs) if they still face wage loss after their impairment benefits end, provided certain criteria are met. For the most severely injured workers—those who suffer catastrophic injuries resulting in permanent disabilities—Texas provides Lifetime Income Benefits (LIBs). And, in the unfortunate event of a work-related fatality, Death Benefits provide financial assistance to eligible family members of the deceased worker.

Each benefit type carries its own maximum and minimum payout limits, calculation methods, and eligibility requirements. Having a clear understanding of these specifics can save your business plenty of headaches (and heartache) should a worker ever be injured.

The Role of State Average Weekly Wage (SAWW)

Think of the State Average Weekly Wage (SAWW) as the heartbeat of the Texas workers' comp benefit system—it powers and determines the maximum and minimum benefit levels every year. Since October 1, 2006, Texas calculates the SAWW as 88% of the statewide average weekly wage from the previous year, based on numbers crunched by the Texas Workforce Commission (TWC). (Before 2004, they only used manufacturing wages—but now it's a more accurate reflection of all industries.)

For fiscal year 2025, the SAWW is set at $1,218.62. That may sound a little random, but it's very important. Here's why: the maximum benefit for Temporary Income Benefits (TIBs), Lifetime Income Benefits (LIBs), and Death Benefits can't exceed 100% of the SAWW. For Impairment Income Benefits (IIBs) and Supplemental Income Benefits (SIBs), the maximum is capped at 70% of the SAWW. And to ensure fairness, minimum benefit levels are set at 15% of the SAWW.

Since the SAWW gets recalculated every year (adjustments hit October 1), benefit limits change annually, too. Staying informed about these rates helps employers budget effectively, manage expectations, and stay compliant with state regulations. You can always find the latest information on SAWW on the Texas Department of Insurance website.

Understanding these annual adjustments doesn't just keep your business on the right side of regulations—it also helps you confidently protect your crew, your company's finances, and your peace of mind.

Maximum and Minimum Benefit Amounts for 2025

If you're wondering how much financial support you could receive after a work injury, here's the scoop. For injuries happening between October 1, 2024, and September 30, 2025, Texas has set clear guidelines for texas workers compensation maximum benefits. These figures are based on the State Average Weekly Wage (SAWW), which is $1,218.62 for fiscal year 2025.

Here's a quick breakdown to make things simple:

• Temporary Income Benefits (TIBs): Maximum weekly benefit is set at $1,219 (100% of SAWW), while the minimum weekly amount is $183.
• Impairment Income Benefits (IIBs): Maximum weekly benefit is capped at $853 (70% of SAWW), with the same minimum of $183 per week.
• Supplemental Income Benefits (SIBs): Like IIBs, the maximum weekly benefit is also $853, but there isn't a set minimum amount.
• Lifetime Income Benefits (LIBs): Maximum weekly benefit starts at $1,219 for the first year, matching 100% of SAWW. The good news? After the first year, LIBs increase by 3% annually without being capped!
• Death Benefits: Maximum weekly benefit is $1,219, with no set minimum.

It's important to know these maximum amounts apply no matter how high your earnings were before the injury. That means even high earners could receive less than their actual lost wages because of these limits.

Temporary Income Benefits (TIBs) Maximums and Minimums

If you're injured on the job and temporarily unable to work or earn your pre-injury wages, Temporary Income Benefits (TIBs) have you covered. TIBs help replace your lost income so you can focus on recovery instead of stressing about finances.

Here's how Texas calculates your TIBs:

• TIBs generally equal 70% of the difference between your average weekly wage (AWW) before the injury and your earnings after the injury.
• If you earned less than $10 per hour prior to your injury, you could receive 75% of the difference instead.

But hold on—remember those maximum and minimum limits we mentioned earlier? Even if the calculation shows you're eligible for more, your weekly TIBs can't exceed the maximum of $1,219 or fall below the minimum of $183 for fiscal year 2025.

TIBs start on your eighth day of disability and typically continue until one of these happens:

• You go back to work earning your regular wages.
• Your doctor determines you've reached Maximum Medical Improvement (MMI)—in other words, you've healed as much as medically possible.
• You've received TIBs for a total of 104 weeks from the eighth day of disability.

In some special circumstances, like having spinal surgery or getting approval for an extended recovery, Texas lets you continue receiving TIBs beyond that 104-week mark—because let's face it, sometimes life throws us curveballs!

Impairment Income Benefits (IIBs) Limits for 2025

Now let’s talk about Impairment Income Benefits (IIBs). Once your doctor decides you've achieved Maximum Medical Improvement (MMI) but notes a permanent impairment, you transition from TIBs to IIBs.

Your doctor assigns you an impairment rating—a percentage representing your level of permanent impairment. Here's how Texas figures out your IIBs payments:

• You're entitled to three weeks of benefits for each percentage point of impairment.
• Your weekly IIBs amount is 70% of your average weekly wage (AWW) before your injury, but again, capped at $853 per week for fiscal year 2025, with a minimum of $183.

Let’s look at an example to help it sink in. Say your impairment rating is 20%, and before injury, your AWW was $1,000. You'd receive benefits for a total of 60 weeks (20% x 3 weeks per percentage point) at $700 per week (70% of your $1,000 AWW).

But let's say you were a higher earner with an AWW of $1,500. Calculating 70% of $1,500 gives $1,050 per week, but because of Texas workers compensation maximum benefits caps, you'd be limited to the maximum weekly amount of $853 instead.

That your impairment rating decides how long you receive IIBs—the higher the impairment rating, the longer you'll receive payments. However, the weekly rate stays consistent throughout your benefit period.

Understanding these maximum and minimum benefit amounts helps you plan better financially during tough times. At Houston Contractors Insurance, we know that navigating workers' comp can feel overwhelming—but we're here to help you every step of the way, with clear explanations (and maybe even a little humor) along your journey!

How Benefits Are Calculated in Texas Workers' Compensation

Understanding how texas workers compensation maximum benefits are calculated can seem complicated at first, but it all starts with one simple number: your Average Weekly Wage (AWW). This figure is the foundation that determines everything else about your benefits.

Calculating Your Average Weekly Wage (AWW)

Your Average Weekly Wage isn't just your regular paycheck. It's a more complete picture of what you earn. Think of it as your financial snapshot from the 13 weeks right before your injury happened.

For most full-time workers (those working at least 30 hours weekly), calculating your AWW is straightforward. We add up all your earnings from those 13 weeks, including your regular wages and overtime. Then we add the value of benefits your employer pays for, like health insurance premiums. Finally, we divide that total by 13.

Let me show you how this works with a real example:

Say Maria earned $10,714.99 over the 13 weeks before her injury. Her employer also paid $1,066 for her health insurance during that time. Adding these together gives us $11,780.99. Divide that by 13, and Maria's AWW comes to $906.23.

If you're working multiple jobs when you get injured, good news – your AWW combines wages from all employers. And for school district employees, we use special methods based on whether you're paid on a contract or per-day basis.

Once we know your AWW, here's how your benefits get calculated:

For Temporary Income Benefits (TIBs), you'll receive 70% of the difference between your AWW and what you can earn after your injury. If you were making less than $10 per hour before getting hurt, that percentage bumps up to 75%. For 2025, these benefits can't go higher than $1,219 per week or lower than $183 weekly.

With Impairment Income Benefits (IIBs), you'll get 70% of your AWW for three weeks for each percentage point of impairment you're rated with. If your doctor gives you a 10% impairment rating, that means 30 weeks of benefits. In 2025, these payments max out at $853 weekly and won't go below $183.

Supplemental Income Benefits (SIBs) kick in after your IIBs run out if you still qualify. These equal 80% of the difference between 80% of your AWW and your current earnings. They're capped at $853 weekly for 2025, and you'll need to reapply every three months.

If you've suffered a catastrophic injury, Lifetime Income Benefits (LIBs) provide 75% of your AWW, with a 3% increase each year. For the first year in 2025, these can't exceed $1,219 weekly or fall below $183. The good news is that after the first year, the 3% increases aren't limited by the maximum.

For families who've lost a loved one, Death Benefits equal 75% of the worker's AWW, maxing out at $1,219 weekly in 2025. How long these benefits last depends on your relationship to the person who passed away.

Let's look at how this works in real life:

James has an AWW of $1,500 and can't work at all due to his injury. His TIBs would be 70% of $1,500, which equals $1,050 per week. Since that's below the $1,219 maximum, he receives the full $1,050 weekly.

Now consider Sarah, who earned an AWW of $2,000. Her TIBs calculation would be 70% of $2,000, which is $1,400. But since that exceeds the maximum, she'll receive $1,219 per week instead.

This shows how texas workers compensation maximum benefits can limit what higher-earning employees receive, regardless of their actual wages before injury. The system ensures everyone receives benefits, but those with higher salaries may feel the pinch of the benefit caps more keenly.

Impact of Maximum Benefit Caps on High Earners

The texas workers compensation maximum benefits are designed to protect injured workers by replacing a portion of lost wages. While this system generally works well, it can create some challenges—especially for higher earners.

Here's why: Texas sets a ceiling on how much workers' comp benefits you can receive each week, regardless of what you earned before the injury. For fiscal year 2025, the maximum weekly payment for Temporary Income Benefits (TIBs) is capped at $1,219.00 per week.

Let's put that into perspective. Suppose you're a contractor earning $1,500 per week and you're injured on the job. Under Texas law, you'd typically receive 70% of your weekly wages ($1,050), which fits comfortably under the $1,219.00 weekly cap. No problem, right?

But let's shift gears and imagine you earn $2,500 per week. At 70%, you'd be eligible for $1,750 per week. Unfortunately, due to the maximum cap, your benefits get trimmed down to the $1,219.00 limit. Instead of receiving the full 70% replacement, you'd actually receive only around 49% of your usual weekly earnings.

Here's a quick breakdown that illustrates how this affects you as a high earner in fiscal year 2025:

As you can see from the chart, once your pre-injury wages exceed approximately $1,742 per week, you're going to hit that benefit cap. And the higher your income climbs, the harder that cap hits you. For example, a professional earning $3,000 per week would only receive about 41% of their original weekly earnings—leaving a noticeable gap.

This wage gap can put significant financial stress on high-earning individuals who are dealing with an injury. After all, your mortgage, car payments, and daily living expenses don't magically shrink just because you're receiving fewer benefits.

As one legal expert succinctly puts it:

"The maximum benefit caps can significantly impact high earners in the Texas workers' compensation system."

And they're absolutely right. The caps are well-intentioned and help the system stay solvent, but the reality is that higher earners run a real risk of financial hardship if they get injured.

So, what's the solution? To ensure you're fully protected, many high earners choose to add supplemental protection, such as private disability insurance, which helps fill the income gap left by workers' comp limits. At Houston Contractors Insurance, we regularly advise our contractor clients—especially those with higher income levels—to explore these supplemental options. It's a smart move that provides peace of mind, knowing you're fully covered if the unexpected ever happens.

Eligibility Criteria for Texas Workers' Compensation Maximum Benefits

Figuring out if you qualify for texas workers compensation maximum benefits doesn't have to be complicated. Let's walk through the essentials so you can understand what's required and how to ensure you're eligible if you ever need to file a claim.

At the most basic level, your injury or illness must be clearly work-related. This generally means it happened because of your job or while performing job duties. Additionally, your employer must carry workers' compensation insurance. Now, remember—Texas is unique because private businesses aren't required by law to have workers' compensation coverage. Some employers choose to opt out (called "non-subscribers"). If your employer is a non-subscriber, you won't have access to workers' comp benefits, but you might have the right to sue your employer directly for negligence.

Next, you'll need to file your claim in a timely manner. Typically, that means reporting your injury to your employer within 30 days and filing your official claim form with the Texas Division of Workers' Compensation within one year of your injury date.

Finally, you'll need to meet the specific criteria for each type of benefit you're seeking. Let's break down exactly what those criteria are.

Eligibility for Lifetime Income Benefits (LIBs)

Texas reserves Lifetime Income Benefits (LIBs) for the most serious, life-changing injuries. These catastrophic injuries typically involve significant permanent damage and disability.

According to the Texas Labor Code (Section 408.161), you may qualify for LIBs if you've suffered any of these severe injuries:

• Total and permanent loss of sight in both eyes
• Loss of both feet at or above the ankle
• Loss of both hands at or above the wrist
• Loss of one foot at or above the ankle and one hand at or above the wrist
• Spinal injuries causing permanent and complete paralysis, affecting both arms, both legs, or an arm and a leg
• Traumatic brain injuries resulting in permanent, severe cognitive damage (sometimes referred to as incurable insanity or imbecility)
• Third-degree burns that cover at least 40% of your body and require grafting, or serious third-degree burns covering 40% or more of the face, also requiring grafting

LIBs provide financial support at 75% of your Average Weekly Wage (AWW), with a built-in 3% annual increase to help keep up with inflation. These benefits last for your entire lifetime. Luckily, the number of LIBs claims each year in Texas is quite low—around 100 cases per year—since these injuries are extremely rare.

Eligibility for Temporary and Impairment Income Benefits

Temporary Income Benefits (TIBs) help if you're temporarily unable to work or your injury forces you to take a pay cut. To qualify, your injury or illness needs to cause you to lose income for at least seven days. Then, TIBs kick in on the eighth day of your disability, continuing until you reach a few possible milestones: you return to your pre-injury wages, you reach Maximum Medical Improvement (MMI), or you've received TIBs for up to 104 weeks (with some exceptions).

Impairment Income Benefits (IIBs) pick up after you've recovered as much as medically possible, called Maximum Medical Improvement (MMI). To get IIBs, your doctor must assign you a permanent impairment rating of at least 1%. Your impairment rating determines the length of these benefits—typically, you receive three weeks of benefits per percentage point of impairment. So, a 10% impairment rating would mean 30 weeks of IIBs payments.

Supplemental Income Benefits (SIBs) come after IIBs end and have additional requirements. To qualify for SIBs, your impairment rating must be 15% or higher. You'll also need to show you're earning less than 80% of your pre-injury wages and that you're actively looking for work (or participating in approved vocational rehabilitation). SIBs eligibility is reviewed quarterly, so you'll submit updated information throughout the year.

While navigating texas workers compensation maximum benefits can feel daunting at first, knowing exactly what's required makes the process far smoother. At Houston Contractors Insurance, we understand these details can be tricky, and we're always here to help Houston-area contractors easily manage their workers' comp decisions with a little humor and a lot of care.

Annual Adjustments and Their Effect on Benefits

One important thing to understand about texas workers compensation maximum benefits is that they're not set in stone forever. In fact, maximum benefit amounts are adjusted every year based on changes in the State Average Weekly Wage (SAWW). That might sound complicated, but think of it as Texas workers' compensation keeping up with the times—and your paycheck!

The SAWW is recalculated annually, which means that the maximum and minimum benefit amounts for Temporary Income Benefits (TIBs), Impairment Income Benefits (IIBs), Supplemental Income Benefits (SIBs), Lifetime Income Benefits (LIBs), and Death Benefits can go up each year. For example, the maximum TIBs rate rose from $913 per week in previous years to $1,219 per week for fiscal year 2025. As wages in Texas increase, these adjustments help ensure benefits stay aligned with workers' current earnings.

These annual updates mean two things: good news for injured employees who file claims later (they benefit from higher maximums), and careful planning for employers and insurance providers, who need to budget for potentially higher claim expenses.

Understanding Cost-of-Living Adjustments (COLA)

Now, if you're dealing with a catastrophic injury and qualify for Lifetime Income Benefits (LIBs), there's even better news. LIBs come with their own built-in protection against inflation, called a cost-of-living adjustment (COLA).

Here's how it works: every year, LIBs automatically increase by 3%, no matter what happens with the SAWW. Even better, after the first year, this 3% annual bump isn't limited by the maximum benefit cap. So even if your initial benefit started at the maximum amount of $1,219 per week, your weekly benefit continues growing each year, keeping pace with rising costs like groceries, gas, and everything else.

Let's put that into perspective. Say you begin receiving LIBs at the maximum rate of $1,219 per week in the year 2025. The next year, your weekly benefit increases to about $1,255.57. The year after that, it climbs to roughly $1,293.24—and it just keeps going up every year you're entitled to the benefit.

That's crucial because catastrophic injuries often mean long-term or lifelong benefits. Without this steady annual increase, over time, your benefits would lose purchasing power due to inflation. The COLA makes sure your LIBs continue to provide meaningful financial support decades down the road.

All these annual adjustments—both SAWW-based changes for most benefits and the 3% COLA for LIBs—help ensure Texas workers' compensation benefits remain fair, sustainable, and genuinely helpful to injured employees. For employers, it means keeping an eye on annual updates so you can accurately budget and maintain strong protection for your team.

Curious about the latest SAWW figures? The Texas Department of Insurance publishes the latest SAWW updates each year, so it's easy to stay informed and plan ahead.

Reporting and Filing Requirements in Texas

When it comes to accessing those important texas workers compensation maximum benefits, proper reporting and timely filing are absolutely essential. Texas has specific rules and deadlines that can directly impact whether you receive benefits or not—so it's crucial to understand exactly what's required.

Importance of Timely Reporting

In Texas, reporting your injury quickly isn't just good practice—it's the law. Employees must notify their employer about a work-related injury or illness within 30 days of the injury itself, or within 30 days from the time they realize the injury or illness was work-related. This doesn't have to be a big, formal announcement—just promptly letting your supervisor or manager know in writing is usually enough.

But that's only step one. After you've let your employer know, it's important to file an official claim with the Texas Division of Workers' Compensation (DWC). You'll do this by filling out and submitting DWC Form-041, also known as the Employee's Claim for Compensation for a Work-Related Injury or Occupational Disease. This form must be filed within one year of the injury date to secure your benefits.

Employers have their own responsibilities, too. Once you've reported your injury, your employer has just eight days to notify their workers' compensation insurance carrier. Additionally, your employer is required to send a wage statement (DWC Form-003) to their insurance carrier within 30 days of learning about your injury.

Hitting these deadlines might sound straightforward, but life—and paperwork—can get complicated quickly. Missing the 30-day window for reporting your injury can mean losing your chance to access workers' comp benefits altogether, unless you can clearly demonstrate a good reason for the delay. Likewise, failing to file your claim within one year could result in denied benefits, except in rare cases—like when your employer didn't file the required First Report of Injury or you're physically unable to file due to your injury.

At Houston Contractors Insurance, we've seen how important clear, easy-to-follow reporting procedures are for both employers and employees. To keep the process smooth, we encourage businesses to set up simple, clear written guidelines for injury reporting and make sure supervisors know exactly what to do when injuries occur.

It's also smart to prominently display required notices about workers' compensation at your workplace and keep detailed records of all injuries. Quick reporting to your insurance company helps keep things moving along smoothly—and helps get benefits to your employees faster.

If you're an employee, protect yourself by reporting any injury immediately and getting medical attention as soon as possible. Keep copies of all paperwork, follow up to make sure your claim gets filed properly, and always respond promptly to any requests for additional information.

By sticking closely to these guidelines, you'll avoid costly delays and roadblocks, ensuring you're in a strong position to receive the texas workers compensation maximum benefits you're entitled to when you need them most.

Challenges and Limitations of Texas Workers' Compensation Benefits

While Texas workers' compensation provides essential support for injured employees, like any system, it has some limitations and challenges. Let's talk honestly (and warmly!) about what these are, so you know exactly what to expect.

One of the most significant challenges is the cap placed on texas workers compensation maximum benefits. Because there's a fixed weekly maximum benefit amount, high earners can end up receiving a smaller portion of their lost wages compared to lower-earning workers. If you've built your life around a higher income level—with mortgages, cars, and kids to feed—this can cause a real pinch in your finances.

Another unique issue in Texas is the "non-subscriber" situation. In our state, private employers aren't legally required to buy workers' compensation insurance. Around 18% of Texas private-sector employees work for these non-subscriber employers. This means that if you're hurt working for one of these companies, you won't have automatic access to workers' comp benefits. Your only recourse is to seek damages through the court system, which can mean more complexity, uncertainty, and stress.

That said, Texas law does impose certain restrictions on these non-subscriber employers. According to the Texas Department of Insurance, non-subscribers lose some legal defenses if they're sued by injured workers. Specifically, the employer can't argue that the employee's own negligence or another employee's negligence caused the injury—or that the employee knew about the danger and voluntarily took the risk anyway. Still, going to court is never quick or easy, and there's no guarantee of a favorable outcome for injured employees.

You'll also want to be aware of limits on benefit duration. Temporary Income Benefits (TIBs), for instance, typically last for a maximum of 104 weeks (two years). Impairment Income Benefits (IIBs) duration depends entirely on your impairment rating, offering three weeks per percentage point awarded by your doctor. Only Lifetime Income Benefits (LIBs)—reserved for the most severe, catastrophic injuries—are truly long-term, continuing for life and increasing annually by 3%.

If disagreements pop up about your claim—maybe there's a dispute over your impairment rating, eligibility, or treatment—you're looking at a potentially complicated dispute resolution process. Getting your benefits finalized and approved can sometimes feel like navigating Houston traffic at rush hour—it can take time, patience, and expert guidance.

Medical provider networks might also pose a limitation. Often, injured workers must receive treatment through healthcare providers approved by their employer or insurance company. While this helps manage costs, it also means you may not be able to pick your preferred doctor or medical facility, which can affect your sense of comfort and quality of care.

Another thing to consider is that workers' compensation benefits typically cover only part of your lost wages (usually 70% to 75% for TIBs). Unlike a personal injury lawsuit, workers' comp won't compensate you for "pain and suffering" or emotional distress. If your injury severely impacts your quality of life beyond just your paycheck, this can be understandably frustrating.

For benefits like Supplemental Income Benefits (SIBs), you'll need to reapply every three months and show proof you're still eligible. This creates an administrative burden for injured employees who are already dealing with recovery and other challenges. Think of it like renewing your driver's license—but every few months instead of every few years (and without the awkward DMV photo, thankfully).

Let's not forget that the regulations around workers' compensation in Texas keep evolving. Staying current on this information means both employers and employees need to regularly check for updates and changes. This can be challenging, especially if your focus is getting better or running your business.

At Houston Contractors Insurance, we understand these challenges firsthand. That's why we take the time to clearly explain how texas workers compensation maximum benefits and their limitations impact you and your business. Our goal is always to make sure you're well-informed, prepared, and protected. Whether helping you choose coverage, explaining claims procedures, or just answering your questions—we're your friendly insurance experts right here in Harris County.

Frequently Asked Questions about Texas Workers' Compensation Maximum Benefits

You're not alone if you find Texas workers' compensation maximum benefits a bit confusing. At Houston Contractors Insurance, we frequently help our clients make sense of the many details. Here are straightforward answers to some of the top questions we hear from contractors like you.

What is the maximum weekly benefit for Texas workers' compensation in 2025?

Each year, the Texas Department of Insurance updates the texas workers compensation maximum benefits based on the State Average Weekly Wage (SAWW). For injuries happening from October 1, 2024, through September 30, 2025, the highest amounts you can receive per week are:

• Temporary Income Benefits (TIBs): up to $1,219.00
• Impairment Income Benefits (IIBs): capped at $853.00
• Supplemental Income Benefits (SIBs): also capped at $853.00
• Lifetime Income Benefits (LIBs): a maximum of $1,219.00 per week (this cap only applies to the first year, after which benefits increase 3% annually without any cap)
• Death Benefits: up to $1,219.00

These numbers are based on the current SAWW for fiscal year 2025, set at $1,218.62. The TIBs, LIBs, and Death Benefits can go up to 100% of the SAWW, while IIBs and SIBs max out at 70% of the SAWW.

How does the State Average Weekly Wage affect my benefits?

Simply put, the State Average Weekly Wage (SAWW) is the magic number that sets the bar for maximum and minimum benefit amounts each year in Texas. It’s calculated annually by taking 88% of the average weekly wages statewide, as reported by the Texas Workforce Commission.

Here’s why SAWW matters to you:

• It sets the maximum weekly benefit you can receive under each benefit type (TIBs, IIBs, LIBs, etc.).
• It determines the minimum weekly benefit (always at 15% of SAWW).
• It updates annually each October 1st, meaning your benefits keep pace with average wage increases.

Think of SAWW as the thermostat for your workers’ comp benefits—it adjusts each year to keep your coverage comfortable and fair. If you're curious about the current SAWW or historical numbers, you can find the latest information on SAWW from the Texas Department of Insurance.

Can high earners receive more than the maximum benefit amount?

Unfortunately, no. Even if you're earning a high salary, the Texas workers' comp system has clear maximum benefit limits. When your calculated weekly benefit surpasses the state's maximum, your payout will be capped at that maximum amount, regardless of your pre-injury wage.

Here's an example—let's say you’re a skilled contractor earning $3,000 per week before your injury. Normally, Temporary Income Benefits (TIBs) pay 70% of your wages, which would be $2,100 per week. But since the max TIBs benefit for 2025 is $1,219.00, that’s the highest amount you’d actually get. In this scenario, you’d only receive about 41% of your normal weekly wages—quite a hit for many folks.

At Houston Contractors Insurance, we often advise our high-earning contractor clients to consider additional income protection through supplemental disability insurance. This extra coverage can help bridge the financial gap if the unexpected happens, ensuring you can keep your family's budget intact while recovering.

If you have more questions or need personalized advice, don't hesitate to reach out. At Houston Contractors Insurance, we're here to help—no hard hats required (unless you want one)!

Conclusion

Understanding texas workers compensation maximum benefits is critical for construction businesses and their teams in Texas. These benefits provide a crucial safety net, helping workers continue to pay bills and support their families when injuries happen on the job. However, as we've explored, there are important limitations—especially for higher earners.

Every year, the maximum weekly benefit amounts change based on the State Average Weekly Wage (SAWW). For fiscal year 2025, the weekly maximums range from $853 for Impairment Income Benefits up to $1,219 for Temporary Income Benefits, Lifetime Income Benefits (in their first year), and Death Benefits. These limits are designed to reflect wages across the state but can significantly impact workers who earn above-average incomes.

For example, a high-earning construction professional who makes $2,500 per week would typically expect to receive around $1,750 (70%) in Temporary Income Benefits. However, because of the maximum benefit cap, they'd only receive $1,219—less than half their normal earnings. This can mean a substantial drop in income, creating stress around meeting ongoing financial obligations.

As a construction contractor or business owner in the Houston area, this reality underscores how important it is to plan ahead. Alongside standard workers' compensation coverage, you may want to consider additional protections, like supplemental disability insurance, to help bridge the income gap for higher-earning employees who become injured.

At Houston Contractors Insurance, we specialize exactly in these kinds of conversations. We know Texas workers' compensation inside and out—and we know the unique insurance needs of contractors, whether you're just starting your business or have a large, established operation. Our job is to simplify these complex topics, answer your questions clearly, and help you find coverage custom specifically to your team's needs.

Navigating the complexities of texas workers compensation maximum benefits can feel overwhelming, but you're not alone. Our friendly, knowledgeable experts are here to guide you every step of the way, offering practical advice, quick online quotes, and personalized service that makes sense for your budget and your business.

To explore your options further or chat about your specific insurance needs, visit our Texas Workers Compensation resource page or reach out to us directly at Houston Contractors Insurance. We're here to support you—and your team—with warmth, expertise, and maybe even a little good humor along the way.

By staying informed about changing benefit limits and working closely with insurance professionals who truly understand your industry, you can ensure your business and your valued employees are protected, no matter what happens on the job.