Each year, Washington State adjusts workers’ compensation benefits to account for changes in the cost of living. The 2025 adjustment is 6.8%, takes effect July 1, 2025, and remains in place through June 30, 2026. These adjustments help injured workers maintain financial stability despite inflation.
What to Expect
If you are receiving time loss, pension, or loss of earning power (LEP) benefits from the Department of Labor & Industries, you should see a 6.76% increase starting in July. This adjustment is based on the state average wage increasing from $89,138 to $95,160.
Benefit Adjustments
- Time Loss Compensation: Payments are based on a percentage of your wage at the time of injury—ranging from 60% to 75%, depending on family size. The new maximum monthly benefit is $9,516.
- Pension Benefits: COLA increases apply to pension recipients, including surviving family members of workers killed on the job.
- Loss of Earning Power: If you’re working with restrictions and earning less than before, LEP benefits may increase if your wage loss exceeds 5%.
Eligibility
You don’t need to take any action to receive the COLA increase. It applies automatically to those already receiving qualifying benefits. However, the adjustment does not apply during the first year after an injury.
Disputes or Errors
If your benefits do not reflect the increase by the end of July, or if you believe the adjustment was calculated incorrectly, contact an experienced workers’ compensation attorney right away. L&I is required to backdate the increase to July 1, 2025.
We’re Here to Help
If you believe there’s an issue with your COLA adjustment or simply want to better understand your benefits, contact the Walthew Law Firm for a free consultation. We proudly serve injured workers across Washington from our Seattle and Everett offices.