Average Monthly Wage
Updated: 19 January 2025
What Does Average Monthly Wage Mean?
A person’s average monthly wage is the amount of money they earn in a month before taxes are deducted. This figure is used in various insurance calculations, including those related to workers’ compensation, disability insurance, and Social Security. Generally, the higher the wage, the higher the benefit.
Insuranceopedia Explains Average Monthly Wage
Average monthly wage calculations are used by the Social Security Administration to determine how much each person will receive in monthly payouts upon reaching retirement age. Typically, the average monthly wage for the top 35 years of a person’s earnings is considered when calculating benefits.
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