Washington L&I Benefits Increase 4.9% on July 1, 2026: What Injured Workers Need to Know

If you're receiving workers' compensation benefits through Washington State Labor & Industries (L&I), there's good news.

Beginning July 1, 2026, eligible injured workers will receive a 4.9% Cost of Living Adjustment (COLA) to certain workers' compensation benefits. This annual increase is designed to help benefits keep pace with rising wages and the increasing cost of living in Washington.

What Is the Cost of Living Adjustment (COLA)?

Washington law requires L&I to review the state's average annual wage each year. When the average wage increases, eligible workers' compensation benefits increase as well.

For 2026, the state's average annual wage increased by 4.9%, resulting in a matching increase to qualifying workers' compensation benefits effective July 1, 2026.

Who Will Receive the 4.9% Increase?

In general, the COLA applies to workers who are receiving:

• Time-loss compensation

• Pension benefits

• Loss of Earning Power (LEP) benefits

  
  

However, not every injured worker will see an increase immediately.

Under Washington law, workers are generally not eligible for a COLA during the first year of their claim. Instead, the adjustment typically begins on the second July 1 after the date of injury or occupational disease.

Will the Increase Happen Automatically?

In most cases, yes. L&I and self-insured employers are expected to automatically apply the annual COLA to eligible claims.

That said, mistakes happen.

We've seen situations where benefits were calculated incorrectly, COLAs were overlooked, or injured workers received less than they were legally entitled to. It's always a good idea to review your benefit amount after July 1 to make sure the increase has been applied correctly.

Updated Benefit Limits

Along with the COLA, Washington's statutory minimum and maximum time-loss rates also increase for injuries occurring between July 1, 2026, and June 30, 2027.

The new limits are:

• Maximum monthly time-loss benefit: $9,981

• Minimum monthly time-loss benefit: $1,247.62 (plus any applicable dependent allowances)

What Should You Do?

If you're receiving workers' compensation benefits:

• Review your benefit payment after July 1.

• Make sure the 4.9% increase has been applied if you're eligible.

• Ask questions if your payment seems incorrect or hasn't changed.

  
  

A small calculation error today can add up to thousands of dollars over the life of a claim.

We're Here to Help

At Ostrander & Deuel, PLLC, we help injured workers throughout Washington navigate the workers' compensation system and make sure they receive every benefit they're entitled to under the law.

If you have questions about your time-loss payments, pension benefits, or whether your COLA was applied correctly, we're happy to review your claim.

Contact Ostrander & Deuel, PLLC today for a free consultation and let us help ensure you're receiving the benefits you deserve.