Michigan Workers' Comp Benefits: Wage Loss, Medical & Disability (2026)

Michigan workers' compensation provides comprehensive medical treatment and wage replacement for work-related injuries.

Medical Benefits

Coverage: All reasonable and necessary medical treatment Duration: For life as needed No copays: Worker pays nothing for authorized treatment Provider choice: You may choose your own physician

Includes:

• Doctor visits, hospitalization, surgery
• Prescription medications
• Physical therapy and rehabilitation
• Medical equipment and supplies
• Mileage reimbursement (10¢ per mile for 2026)

Wage Loss Benefits

Calculation: 80% of after-tax average weekly wage Maximum (2026): Approximately $1,134/week When paid: After 7-day waiting period Duration: Until return to work or maximum recovery

Waiting period: First 7 days unpaid unless disability exceeds 2 weeks

Payment schedule: Biweekly

Specific Loss Benefits

For permanent loss/amputation of body parts

Examples (weeks of benefits):

• Arm: 335 weeks
• Leg: 315 weeks
• Hand: 215 weeks
• Foot: 162 weeks
• Eye: 125 weeks
• Thumb: 67 weeks
• Finger: 38-42 weeks

Calculation: Based on 80% of after-tax AWW at time of injury

Permanent Disability Benefits

When: Residual disability after maximum medical improvement Types:

• Specific loss (scheduled injuries) - fixed weeks
• Non-scheduled (back, head, internal) - varies by impairment

Non-scheduled calculation:

• Medical evaluation of impairment percentage
• Wage-earning capacity analysis
• Benefits based on ongoing wage loss

Vocational Rehabilitation

When: If unable to return to previous work Services: Job training, education, placement assistance Duration: Up to 2 years Eligibility: Must have significant disability

Death Benefits

Eligibility: Spouse, children, dependents Amount:

• Total dependents: 80% of after-tax AWW
• Partial dependents: Proportional amount Duration:
• Spouse: Until remarriage (lump sum on remarriage = 2 years benefits)
• Children: Until age 18 (or 21 if full-time student)

Burial expense: Up to $6,000

Benefit Calculation Example

Average weekly wage: $1,000
State/federal taxes: ~20% = $200
After-tax AWW: $800
Wage loss benefit: 80% × $800 = $640/week

(Actual calculation uses tax tables and marital status)

FAQs

Q: Are workers' comp benefits taxable? A: No. All wage loss and specific loss benefits are tax-free.

Q: Can I receive workers' comp and Social Security Disability? A: Yes, but total benefits may be reduced to avoid exceeding 80% of pre-injury earnings.

Q: What if I can work part-time? A: You may receive partial wage loss benefits if earning less than before injury.

Q: Can my benefits be reduced? A: Yes, if insurer proves you're capable of earning more (wage-earning capacity determination).

Q: How long do wage loss benefits last? A: No maximum duration while totally disabled and unable to work.

Related Topics

• Filing a Michigan Workers' Comp Claim
• Michigan Denied Claims
• Michigan Workers' Compensation Overview

Last updated: January 5, 2026