The L&I COLA for 2025 -2026 will be 6.8%.
This 6.8% 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).
The Average Weekly Wage increased more than normal this year because over the past 12 months, many employers increased the wages they pay their workers. When unemployment is low, wages tend to increase, and that is what happened this past year.
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.
What is an L&I COLA? 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 (COLA). The COLA takes effect on your claim’s second July 1st and each July 1st thereafter.
Do I need to ask for the COLA?
You should not need to ask for the COLA, and you should not have to hire attorneys 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, for all time loss or pension benefits from July 1 going forward.
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 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. In 2025-2026, maximum time loss rates will increase to $9,516.00, 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.
Is There a Minimum Time Loss Rate?
Yes, there is a minimum time loss rate.
Low-wage earners are somewhat protected with 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. In 2025-2026, the pre-dependent minimum time loss rate is $1,189.50.
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 the department 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 the COLA?
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.
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 that wage. That percentage figure is multiplied by your L&I wage rate.
For detailed information on the 2025-2026 COLA this year, once they update it, please refer to the 2025-2026 Benefits Schedule.
Most workers with an injury date before June 30, 2024, will receive a COLA on July 1, 2025.
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% |
