The L&I COLA for 2026 -2027 will be 4.9%.
This 4.9% cost-of-living adjustment is an increase in benefits for injured workers. This yearly L&I COLA increase is determined by the yearly change in the Washington State average weekly wage (AWW).
Who gets a COLA?
Most workers currently receiving Washington workers’ compensation time loss or pension benefits receive a cost-of-living increase effective July 1 each year.
The increase also applies to pension benefits paid to family members of those who died because of a work-related accident or disease.
There is no COLA for the first year of your claim. No COLA until the second July 1st following the date of injury or occupational disease manifestation per RCW 51.32.075. Your COLA will start the second July 1st, following the date of your injury.
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What is an L&I COLA? The Washington State L&I Cost of Living Adjustment
A COLA is a cost-of-living adjustment. Washington State law requires that benefit amounts be recalculated each year to reflect the change in the state’s average wage from the previous calendar year. The result of this recalculation is the annual cost-of-living adjustment. The COLA takes effect on your claim’s second July 1st and each July 1st thereafter.
Why did the average weekly wage increase this year?
The Washington State average weekly wage varies each year due to shifts in workforce composition and uneven industry growth. This past year, an increase in high-paying technology jobs increased the average weekly wage. Also, fewer workers employed in the lower-paying tourist service jobs create a decrease in employment volume, thus an increase in the average wages paid to all workers.
Do I need to ask for the COLA?
You should not need to ask for the COLA, and you should not have to hire an attorney to get a COLA. The Department of Labor and Industries should automatically calculate your adjustment. You will see the adjustment after July 1, and typically no later than August 15. Time loss or pension benefits effective July 1 should be increased by this COLA amount.
If your COLA is paid late, you should get a retroactive pay increase dated back to July1.
If a self-insured employer covers your claim, the Third Party Administrator will automatically calculate your COLA. If you don’t receive your COLA increase automatically from the Third Party Administrator, contact the Self-Insured Section of L&I and ask them to help. You can also ask the Self-Insured Section to issue a penalty for any late COLA payment.
If you do not automatically receive your COLA, you may wish to seek legal assistance.
Is There a Maximum Time Loss Rate?
Yes, there is a maximum time loss rate.
High-wage earners are capped out at the maximum rate. The maximum time loss rates will increase to $9,981.00, which is 120% of the state’s average monthly wage. Said another way, if you were a high-wage earner when you were injured, then the COLA does not apply to you; rather, the maximum time loss rate applies. The maximum time loss rate increases every year.
Is There a Minimum Time Loss Rate?
Yes, there is a minimum time loss rate.
Low-wage earners are somewhat protected by a minimum time-loss rate. That rate is 15% of the average annual wage, plus $10 for a spouse and $10 for each dependent child. This year, the pre-dependent minimum time loss rate is $1,247.62. The minimum time loss rate increases every year.
How is the Health of Your Workers’ Compensation claim?
All good? Congratulations if your claim is healthy and headed in the right direction.
Not so good? Concerns? Questions? If you have questions or concerns about your claim, call for information. Call or write to have your questions answered. You will receive a complimentary initial consultation to discuss your claim. Contact information is at the bottom of this page.
What if I receive Social Security Benefits, will I still get a COLA?
When a worker receives a check from L&I and is also on Social Security disability, they may or may not receive a cost-of-living increase every year.
Based on the claimant’s wages, they either receive a cost-of-living increase once a year on July 1st or have their claim reviewed every three years.
Federal law allows L&I to review the combined benefit amount every three years to determine whether the income should increase to reflect more current wage levels.
How does L&I determine the amount of my time loss or pension benefit?
Your L&I wage rate is set early in your claim. Washington’s workers’ compensation law provides that injured workers receive from 60 to 75 percent of their income, up to the legally set maximum, tax-free, while they are physically unable to work. L&I sets your rate by issuing an order. Pay attention to that order and protest or appeal in time if L&I gets it wrong.
The COLA recalculation of benefits is based on the average annual wage of all workers in the state of Washington. The Employment Security Department calculates the average wage as a percentage increase. That percentage figure is multiplied each year by your L&I wage rate.
For detailed information on the 2026-2027 COLA this year, once they update it, please refer to the Benefits Schedule.
Most workers with an injury date before June 30, 2025, will receive a COLA on or shortly after July 1, 2026.
L&I COLA History
| Year 2025-2026 | COLA Increase 6.8% |
|---|---|
| 2024 – 2025 | 5.9% |
| 2023 – 2024 | 2.0% |
| 2022 – 2023 | 7.5% |
| 2021 – 2022 | 10.1% |
| 2020 – 2022 | 6.7% |
| 2019 – 2020 | 6.5% |
| 2018 – 2019 | 4.9% |
