Impairment Rating Payout: How a % Becomes Dollars

An impairment rating is a percentage, and a percentage is not a payment. Your doctor says "15%," and you want to know what that is worth. The answer is a three-step conversion: the rating sets a number of weeks, your state's rate rule sets a dollar amount per week, and the two multiply together. Each state fills in those steps differently.

This post uses Texas as the main example, because its rule is easy to follow: a fixed number of weeks for every point of rating. It then covers Colorado's scheduled-injury rule and how California gets from a rating to a payment. Every figure comes from a state statute or state agency and shows its effective dates. For the general formula most states share, see our PPD settlement calculator guide.

The Three Steps: Rating, Weeks, Dollars

The rating. After you reach maximum medical improvement (MMI), meaning your condition has stopped improving, a doctor assigns a percentage for the permanent loss.
The weeks. Your state turns that percentage into weeks of benefits. Some states count weeks per point of rating. Others assign weeks to each body part and take a share.
The weekly rate. Your state sets a dollar amount per week, usually a share of your average weekly wage (AWW) with a maximum and minimum. Colorado pays a flat amount for scheduled injuries.

Weeks times weekly rate is what the formula produces. It is not a settlement offer.

Texas: Impairment Income Benefits

Texas calls the payment for a permanent rating impairment income benefits (IIBs). Texas Department of Insurance, Division of Workers' Compensation (TDI-DWC) describes them in one line: "If you are eligible, you get three weeks of IIBs for each percentage of impairment" (TDI-DWC, Impairment Income Benefits).

How Texas counts the weeks

The statute sets the rule. Under Tex. Labor Code § 408.121(a), IIBs begin the day after you reach MMI and end on the earlier of two dates: when a period "computed at the rate of three weeks for each percentage point of impairment" runs out, or your death (statute text via Justia: § 408.121). Under subsection (b), the insurance carrier must start paying no later than the fifth day after it receives the doctor's report certifying MMI.

The math is a single multiplication: rating % × 3 = weeks.

How Texas sets the weekly rate

Tex. Labor Code § 408.126 sets the IIB rate at 70 percent of your average weekly wage, subject to the maximum and minimum in §§ 408.061 and 408.062 (statute text via Justia: § 408.126). The maximum for IIBs is 70 percent of the state average weekly wage, and the minimum is 15 percent of it, both rounded to the whole dollar (§ 408.061 and § 408.062, statute text via Justia).

Those limits reset every October 1, and the limit in effect on your date of injury stays fixed for as long as benefits are paid (§ 408.061(g)). TDI-DWC publishes the figures, last updated 9/14/2026 (TDI-DWC, Maximum and Minimum Weekly Benefits):

Date of injury	State average weekly wage	IIB maximum per week	IIB minimum per week
Oct. 1, 2026 – Sept. 30, 2027 (fiscal year 2027)	$1,314.32	$920.00	$197.00
Oct. 1, 2025 – Sept. 30, 2026 (fiscal year 2026)	$1,271.05	$890.00	$191.00

An injury on or after October 1, 2026 uses the $920 maximum. An injury on September 30, 2026 uses $890 for the whole claim.

The IIB maximum is also lower than the "Texas maximum" you often see quoted. The $1,314 figure ($1,271 the year before) is the cap for temporary income benefits, not impairment benefits. Our state-by-state maximum weekly benefits page covers those temporary-benefit caps.

Texas rating-to-weeks table

Because the rule is three weeks per point, the weeks column below is exact for any rating. The dollar column uses a hypothetical weekly rate of $700, which is 70 percent of a $1,000 AWW and sits under both the $890 and $920 caps.

Impairment rating	IIB weeks (rating × 3)	Total at a hypothetical $700/week
5%	15	$10,500
10%	30	$21,000
15%	45	$31,500
20%	60	$42,000
25%	75	$52,500

Worked example: 15% rating, AWW $1,000

This is a hypothetical, not an estimate for a real claim. Say a worker is injured on November 2, 2026, reaches MMI, and receives a 15% rating. Their AWW is $1,000.

Weeks: 15 × 3 = 45 weeks.
Rate: 70% × $1,000 = $700.00 per week. That is below the $920 maximum for fiscal year 2027, so the full $700.00 applies.
Total: 45 × $700.00 = $31,500.00.

Now raise the wage. With the same rating and an AWW of $1,500, 70% × $1,500 = $1,050, which is over the cap, so the rate drops to $920: 45 × $920.00 = $41,400.00. Had that injury happened in September 2026, the cap would be $890: 45 × $890.00 = $40,050.00. Both examples assume wages high enough that the $197 minimum does not apply.

What a 15% rating also means

Fifteen percent is a threshold in Texas. Supplemental income benefits after IIBs end require "an impairment rating of 15 percent or more," along with other conditions such as work-status and job-search requirements (Tex. Labor Code § 408.142(a), statute text via Justia: § 408.142). A 14% rating cannot qualify.

Who sets the rating, and what happens in a dispute

The doctor who certifies MMI also assigns the rating, using the guidelines in § 408.124 (§ 408.123, statute text via Justia). Texas uses the AMA Guides to the Evaluation of Permanent Impairment, 4th edition (1993). DWC says it has used that edition for over 20 years and plans to move to the 6th edition (2025) (TDI-DWC, AMA Guides transition). A DWC stakeholder presentation shows a tentative January 1, 2028 start for exams under the new edition, with dates "tentative and subject to change" (DWC presentation).

A rating can be disputed, but the clock is short:

A first valid rating becomes final if it is not disputed before the 91st day after written notice goes to you and the carrier (§ 408.123(e)). Later disputes need compelling medical evidence (§ 408.123(f)).
If the carrier disputes the rating, it must still pay IIBs based on its "reasonable assessment of the correct rating" (§ 408.121(c)).
When a rating is disputed, DWC sends the employee to the next available doctor on its designated doctor list, and that doctor's report carries presumptive weight unless other medical evidence outweighs it (§ 408.125, statute text via Justia).

Every rating point is worth three weeks, so a two-point gap between doctors is six weeks of benefits. Our Texas workers' comp calculator shows what a different rating does to your total.

Colorado: Scheduled Injuries Pay a Flat Weekly Rate

Colorado splits injuries into two groups. The state's division describes scheduled injuries as loss of function "to your toes, feet, legs, fingers, hands, arms, eyes, vision or hearing," and non-scheduled (whole person) injuries as loss of function "to your spine, lungs, or mental function" (Colorado DWC, Understand Potential Benefits).

For scheduled injuries, the statute assigns weeks to each body part: the loss of a hand below the wrist is 104 weeks (C.R.S. § 8-42-107(2)(c)), and a partial loss pays the "proportionate share" of that schedule (§ 8-42-107(7)(b)(II)) (statute text via Justia: § 8-42-107). The weekly rate is a flat statutory amount that is adjusted each July 1 and does not depend on your wages. For injuries from July 1, 2026 through June 30, 2027, it is $459.45 per week under the 2026 Max Benefits Order, which Colorado DWC posted on June 2, 2026 as effective July 1, 2026 (DOWC updates).

Hypothetical example: hand below the wrist, 20% loss

Weeks: 104 × 0.20 = 20.8 weeks.
Rate: the flat $459.45 per week. Your AWW is not used.
Total: 20.8 × $459.45 = $9,556.56.

At 10% loss, the same hand is 10.4 weeks × $459.45 = $4,778.28.

Colorado whole-person injuries: explanation only

We do not calculate this track, because we could not verify the full age-factor table. Here is how the state describes it: injuries not on the schedule (for example, back or neck) are rated as whole-person impairment: rating % × an age factor (1.80 at age 20 or younger, down to 1.00 at 60 or older) × 400 weeks, paid at the TTD rate within a 2026–2027 range of $150.00–$804.46 per week. Combined TTD and PPD are capped at $202,297.46 (whole-person rating 19% or less) or $328,049.94 (20% or more) for 2026–2027 (C.R.S. § 8-42-107.5; DOWC 2026 Max Benefits Order).

Colorado's statute names the revised third edition of the AMA Guides, as in effect July 1, 1991, for whole-person ratings (§ 8-42-107(8)(c)). Our Colorado calculator handles the scheduled track.

California: A Rating Becomes a Final Percentage, Then Weeks, Then a Rate

California has more steps than Texas or Colorado, and we are not publishing a dollar total for it. Here is what the state's Division of Workers' Compensation (DWC) publishes:

Impairment to disability. DWC says, "Whole person impairment is converted to disability using modifiers in the Permanent Disability Rating Schedule (PDRS)." For injuries on or after January 1, 2013, a 1.4 modifier replaced the future-earning-capacity (FEC) modifier, and the 2005 PDRS is then used to adjust for occupation and age (DWC, Workers' Compensation Benefits). Apportionment, meaning how much of the disability comes from other causes, also affects the result.
Percentage to weeks. The schedule says "Each rating corresponds to a fixed number of weeks of compensation," paid under Labor Code § 4658 (DWC, 2005 Schedule for Rating Permanent Disabilities).
Weeks to dollars. DWC's fact sheet says your percentage of disability "equals a specific dollar amount, depending on the date of your injury" (DWC Fact Sheet D). The weekly PD rate is a share of your average weekly wage, within a minimum and maximum that depend on your injury date and how high your rating is.

We could not confirm the weeks-per-percentage table on a DWC page, and a wrong week count would produce a wrong total, so we show no California payout figure. For your own number, use DWC's published resources above or contact DWC's Disability Evaluation Unit or a local Information & Assistance office. Our California calculator page has the state's weekly benefit figures.

What the Formula Leaves Out

The payout above is one piece of a workers' comp claim: the permanent impairment benefit. It does not include temporary disability checks, medical care, or anything negotiated in a settlement. A settlement can resolve disputes over the rating, the injury, or future medical costs for a lump sum that does not trace back to weeks times rate. We do not publish an "average" payout, because no official source gives one. For how other states compare, see our workers' comp settlement chart. Our methodology page explains how we source each figure, and the workers' comp settlement calculator lets you run your own numbers.

Frequently Asked Questions

How much is a 10% impairment rating worth?

It depends on the state. In Texas, 10% is 30 weeks, or $21,000 at a hypothetical $700 weekly rate. In Colorado, a 10% loss of a hand below the wrist is 10.4 weeks at $459.45, or $4,778.28. California converts a final rating after adjustments, so a raw 10% cannot be priced.

How many weeks of benefits do I get in Texas for my impairment rating?

Three weeks for each percentage point, so a 20% rating is 60 weeks. Benefits start the day after you reach MMI and end when the weeks run out or if you die first (Tex. Labor Code § 408.121).

What is the Texas impairment income benefit maximum for 2026-27?

For injuries from October 1, 2026 through September 30, 2027, the weekly maximum is $920.00 and the minimum is $197.00. For injuries from October 1, 2025 through September 30, 2026, the maximum is $890.00 and the minimum is $191.00. The rate in effect on your injury date applies for the whole claim.

Does my wage affect an impairment payout?

In Texas and California, yes, up to each state's cap. In Colorado, no: scheduled injuries pay a flat weekly rate regardless of what you earned.

Can I challenge my impairment rating?

Yes, but the deadlines are short. In Texas, a first valid rating becomes final if not disputed before the 91st day after written notice, and a disputed rating goes to a designated doctor. Other states have their own processes, so check with your state agency or a licensed attorney.

Sources

This article is general information, not legal advice. Workers' compensation rates, ratings and deadlines change and are decided case by case. Check current figures with your state's workers' compensation agency, and talk to a licensed attorney in your state before relying on any number here for a real claim.