Estimate gross weekly pay from annual earnings, pay frequency, 2–13 weekly amounts or pay history by day. You can also estimate annualized earnings or implied paid weeks. Dollar amounts are before taxes and deductions; this is not a statutory benefits calculation.

Divide gross annual earnings by the weeks you want to average over. Use 52 for the conventional full-year average; fewer weeks gives an average over those selected weeks.

Choose the denominator or paid weeks appropriate to your task; fractional weeks are allowed.

Average Weekly Wage Formula

The following formula is used to calculate an average weekly wage:

AWW = AS / W
  • Where AWW is the average weekly wage ($)
  • AS is gross annual earnings ($)
  • W is the number of weeks used for the average (commonly 52 for a calendar-year average, or the number of weeks worked)

Select Weekly average from annual earnings, enter gross annual earnings and the chosen averaging weeks, then select Calculate. Dividing by 52 gives the conventional full-year weekly average. Dividing by fewer weeks gives an average over those selected weeks, not the same full-year average.

What is an average weekly wage?

Definition:

An average weekly wage is gross earnings divided by the weeks included in the average. Other modes convert hourly, daily, weekly, every-two-week, twice-monthly or monthly pay. Hourly mode is straight-time only and does not add overtime premiums. Twice-monthly and monthly modes assume 24 or 12 equal payments per year; optional averaging weeks default to 52 without changing annual pay. Other pay modes use optional paid weeks, default 52, to annualize a constant weekly amount. History mode averages 2–13 entered weekly amounts, ignoring blank lines but counting explicit zeros; include actual overtime, tips and bonuses in those amounts. Days-history mode uses gross pay ÷ days paid × typical paid days per week. These estimates do not determine workers’ compensation or other statutory benefits.

How to calculate average weekly wage?

Example Problem:

The following example outlines how to calculate an average weekly wage.

First, determine the person’s annual salary. In this example, the person in question earns a total of $50,000.00.

Next, divide by 52 for the conventional full-year weekly average. Use fewer weeks only when you intend to report an average over that shorter set of weeks.

AWW = AS / W

AWW = 50,000 / 52

AWW = $961.54.