Illinois Workers’ Compensation Guide

How Illinois Calculates Workers’ Comp Benefits

Illinois calculates workers’ compensation benefits as a percentage of your average weekly wage (AWW) in the 52 weeks (or the actual period of employment, if shorter) immediately before your injury. Illinois uses a 66.67% (two-thirds) replacement rate — the most common rate among U.S. states — subject to a minimum and maximum weekly cap that the Illinois Workers’ Compensation Commission (IWCC) adjusts each year, effective February 1 (for the maximum) and based on statewide average wage (for the minimum).

For 2026 injuries, the Illinois IWCC has set:

• Maximum weekly TTD rate: $1,813.13 (effective Feb 1, 2025)
• Minimum weekly TTD rate: $250.00 (based on state minimum wage for non-fatal injuries; $668.61 for injuries causing death and leaving a spouse/children)

Illinois requires virtually all employers to carry workers’ comp insurance, with limited exceptions. The Illinois Workers’ Compensation Commission (IWCC) oversees the system. Illinois has no state-run workers’ comp fund — all coverage is provided by private insurance carriers or self-insured employers approved by the IWCC.

The Illinois Workers’ Compensation Act is codified in 820 Illinois Compiled Statutes (ILCS) 305, and the implementing rules live in Illinois Administrative Code, Title 50, Part 9000 (IWCC Rules).

Important: Illinois is one of the most generous workers’ comp systems in the country. The maximum weekly rate of $1,813 is the highest of any state in the country (tied with several others), reflecting Illinois’s high cost of living and strong labor protections. Coverage is essentially universal.

Weekly Benefit Formula

The Illinois TTD formula is:

TTD weekly rate = min(max, max(min, 2/3 × AWW))

Where:

• AWW = average weekly wage over the 52 weeks immediately before the injury date. Illinois uses a 52-week average (not 13 weeks like many other states). Overtime, bonuses, and other compensation are included per 820 ILCS 305/10. If the worker didn’t work full-time, or had periods of unemployment in the 52-week period, the AWW is calculated using comparable work or a prorated average.
• min = the current minimum TTD rate ($250/week for 2026)
• max = the current maximum TTD rate ($1,813.13/week for 2026)

The 66.67% (two-thirds) replacement rate is the most common rate among U.S. states. Illinois’s maximum of $1,813 is higher than nearly all other states, reflecting Illinois’s high cost of living.

Worked example (2026 injury, Chicago factory worker)

A factory worker in Cicero earning $1,400/week is injured and cannot work:

• 2/3 × $1,400 = $933.33/week raw rate
• $933.33 is below the 2026 max of $1,813.13, and above the 2026 min of $250
• The worker receives $933.33/week in TTD benefits

A higher-earning software engineer in downtown Chicago earning $2,500/week:

• 2/3 × $2,500 = $1,666.67/week raw rate
• $1,666.67 is below the 2026 max of $1,813.13
• The engineer receives the uncapped $1,666.67/week in TTD

A high-earning surgeon at a Chicago hospital earning $5,000/week:

• 2/3 × $5,000 = $3,333.33/week raw rate
• $3,333.33 is above the 2026 max of $1,813.13
• The surgeon receives the capped $1,813.13/week in TTD

A lower-wage retail worker earning $400/week:

• 2/3 × $400 = $266.67/week raw rate
• $266.67 is above the 2026 min of $250
• The worker receives $266.67/week in TTD

Permanent Partial Disability (PPD)

Illinois uses the AMA Guides, 5th Edition to assign impairment ratings. The PPD weekly rate is 66.67% of AWW, capped at the same max as TTD. The total weeks payable are determined by the impairment rating × 500 weeks for most injuries:

PPD total benefit = impairment rating × 500 × weekly rate

A 25% impairment rating × 500 weeks = 125 weeks of benefits. At the 2026 max rate of $1,813.13/week, that would equal $226,641 total.

For specific body parts (e.g., hand, arm, leg, eye), Illinois uses a schedule of losses in 820 ILCS 305/8(e) with specific weeks per body part. The schedule of losses is mandatory for those body parts and overrides the impairment-based formula.

Wage Differential

For workers who return to work at a lower-paying job due to the injury, Illinois pays a Wage Differential equal to 66.67% of the difference between the pre-injury AWW and the post-injury earnings, capped at the standard max. The wage differential continues until the worker reaches age 67 (or 5 years from the injury date, whichever is later), or until the wage differential is eliminated by a wage increase.

This is one of the more generous wage-differential provisions in the country, and it can result in long-term benefits for workers with permanent partial disabilities.

Max Weekly Benefit (2026)

Source: Illinois Workers’ Compensation Commission, “Maximum Rate” — verified at iwcc.illinois.gov each February.

For TPD (Temporary Partial Disability) the rate is 66.67% of the difference between your pre-injury AWW and your post-injury earnings, capped at the standard max. TPD typically continues for the duration of the disability (no hard cap in Illinois for most cases).

How to File a Workers’ Comp Claim in Illinois

Illinois has a structured, multi-step process for filing a workers’ comp claim. The Illinois IWCC processes tens of thousands of claims per year through its eFile system and 5 hearing sites (Chicago, Collinsville, Peoria, Rockford, and Springfield).

1. Report the injury to your employer immediately. 820 ILCS 305/6© requires you to notify your employer within 45 days of the injury. In practice, report the same day if possible. Verbal notice is acceptable, but follow up in writing.

2. Employer reports to the insurance carrier. Your employer has 7 days to report the injury to their workers’ comp insurance carrier. The carrier has 14 days to begin paying benefits or deny the claim.

3. File an Application for Adjustment of Claim (Form IC-10). This is the formal claim that triggers the IWCC’s tracking and dispute resolution timelines. You can file online via the IWCC’s eFile system or by mail. You must file within 3 years of the injury date (or 2 years from the last compensation payment, whichever is later), per 820 ILCS 305/6(d).

4. Seek medical treatment from an authorized provider. Under Illinois law, your employer controls the initial choice of doctor through a Preferred Provider Program (PPP) or a PPO network. The carrier must provide a list of approved providers within 7 days of receiving notice of the injury. For emergency treatment, you can go to the nearest emergency room. For non-emergency treatment, you must use a network provider.

5. If denied or disputed, request an arbitration hearing. File a Request for Hearing (Form IWCC-501) with the IWCC. The IWCC will schedule an arbitration hearing before an Arbitrator at one of the 5 hearing sites. Hearings are typically scheduled within 12–18 months of filing.

6. Appeal to the IWCC Commissioners. If you disagree with the Arbitrator’s decision, you can appeal to a panel of three IWCC commissioners. The IWCC Panel decision is binding, subject to further appeal.

7. Final appeal to the Illinois Circuit Court / Appellate Court. The IWCC Panel decision can be appealed to the Circuit Court of the county where the injury occurred, and then to the Illinois Appellate Court and Illinois Supreme Court. The Appellate Court decision is binding unless overturned by the Supreme Court.

8. Track all paperwork. Keep copies of: Form IC-10, all medical reports, pay stubs (pre and post injury), correspondence with the insurer, and the carrier’s provider list. The IWCC’s eFile system allows online access to claim records.

9. Consult an Illinois workers’ comp attorney if:

   • Your claim is denied
   • You are approaching maximum medical improvement
   • You are offered a settlement (called a “Section 9 lump-sum settlement” or an “agreed settlement contract”)
   • Your employer is retaliating against you
   • You disagree with the impairment rating

   Most Illinois workers’ comp attorneys offer free consultations and work on contingency. Attorney fees in Illinois are regulated and subject to IWCC approval (typically 20% of the settlement or award).

FAQ

How long do TTD benefits last in Illinois?

TTD continues until you reach Maximum Medical Improvement (MMI) — the point at which your condition is not expected to improve further with treatment — or until you return to work.

Illinois does NOT impose a hard time limit on TTD for most injuries. As long as the medical evidence supports ongoing disability, TTD can continue indefinitely. This is significantly more generous than many other states (e.g., Florida’s 104-week cap, Texas’s 104-week cap for most injuries).

For PPD (Permanent Partial Disability), the total weeks are limited by the impairment rating × 500 weeks for non-scheduled injuries, or by the schedule of losses in 820 ILCS 305/8(e) for scheduled body parts.

For Wage Differential (for workers who return to work at lower pay), the benefit continues until the worker reaches age 67 (or 5 years from the injury date, whichever is later), or until the wage differential is eliminated by a wage increase.

For PTD (Permanent Total Disability), benefits continue for the duration of the disability, with no hard time limit.

Are Illinois workers’ comp benefits taxable?

No. Workers’ compensation benefits in Illinois are not subject to federal or Illinois state income tax under Internal Revenue Code Section 104(a)(1). They also do not count as earned income for Social Security purposes. You will not receive a W-2 or 1099 for TTD/PPD payments, but structured settlements may have different tax treatment if you assign the future payments to a third party.

Can I be fired for filing a workers’ comp claim in Illinois?

Illinois has strong anti-retaliation protections for workers’ comp claimants. The Illinois Workers’ Compensation Act (820 ILCS 305/4(h)) and the Illinois Human Rights Act prohibit employers from discriminating or retaliating against an employee for filing a workers’ comp claim in good faith. Illinois courts have interpreted this broadly to include termination, demotion, harassment, and reduction in hours.

If you are retaliated against, you may have a separate workers’ comp retaliation claim with damages including reinstatement, back pay, lost benefits, and (in some cases) punitive damages.

The statute of limitations on a workers’ comp retaliation claim is generally 2 years from the retaliatory act — contact an employment attorney promptly if you suspect retaliation.

How do Illinois workers’ comp settlements work?

Illinois has two main settlement types:

• Section 9 Lump-Sum Settlement (Contract of Settlement): A negotiated settlement where the worker agrees to a lump sum in exchange for closing the claim (or a portion of it). The agreement must be approved by the IWCC, and the worker must understand the rights being waived. Never sign a Section 9 settlement without consulting an attorney — the waiver is permanent, and the first offer is rarely the best deal, especially for injuries requiring future medical care.

• Agreed Settlement (Section 8/9): A negotiated settlement that resolves disputed or uncertain issues (e.g., the extent of disability, the AWW, the compensability of the injury). The agreement is reviewed by an IWCC Arbitrator for fairness.

For both settlement types, an attorney is highly recommended. The IWCC reviews all settlements involving an attorney, and an Arbitrator must approve the settlement to ensure it is voluntary and the worker understands the rights being waived.

What is the difference between TTD, TPD, PTD, and death benefits?

• TTD (Temporary Total Disability): Paid when you are completely unable to work for a temporary period. 2/3 × AWW, capped. Paid until MMI, with no hard time limit.
• TPD (Temporary Partial Disability): Paid when you can do some work but earn less than pre-injury. 2/3 × (AWW - current earnings), capped. Paid for the duration of the disability, with no hard time limit in most cases.
• PPD (Permanent Partial Disability): Paid after MMI when you have a permanent partial disability. 2/3 × AWW, capped, paid for a fixed number of weeks based on the impairment rating × 500 weeks (for non-scheduled injuries) or per the schedule of losses (for scheduled body parts).
• PTD (Permanent Total Disability): Paid after MMI when you have a permanent total disability. 2/3 × AWW, capped, paid for the duration of the disability, with no hard time limit.
• Wage Differential: For workers who return to work at lower pay. 2/3 × (pre-injury AWW - post-injury earnings), capped. Paid until age 67 (or 5 years from injury, whichever is later).
• Death benefits: Paid to dependents if a work injury causes death. Burial allowance up to $8,000 (2026) plus 66.67% of AWW to surviving spouse, until remarriage. Children share in the benefit until age 18 (or 22 if a full-time student, or indefinitely if disabled).

What is the Illinois workers’ comp appeals process?

If your claim is denied or you disagree with a benefit amount, the process is:

1. Arbitration hearing before an Arbitrator — formal hearing with testimony and evidence (typically 12–18 months from filing the IC-10 or IWCC-501)
2. Review by the IWCC Commissioners — three-commissioner panel review of the Arbitrator’s decision (typically 6–12 months)
3. Appeal to the Circuit Court — judicial review of the IWCC decision (typically 12–18 months)
4. Appeal to the Illinois Appellate Court / Supreme Court — discretionary review (typically 12–24 months)

Most claims settle before the Circuit Court stage. The entire process from initial filing to final decision typically takes 18–36 months.

Sources

• 820 Illinois Compiled Statutes (ILCS) 305 — Workers’ Compensation Act — ilga.gov
• 50 Illinois Administrative Code, Part 9000 (IWCC Rules) — ilga.gov
• Illinois Workers’ Compensation Commission — iwcc.illinois.gov
• IWCC eFile System — iwcc.illinois.gov/eFile
• IWCC “Maximum Rate” (Feb 2025)
• AMA Guides to the Evaluation of Permanent Impairment, 5th Edition
• U.S. Bureau of Labor Statistics, Survey of Occupational Injuries and Illnesses (SOII) — Illinois data series