As I noted last month, the state average annual wage increased to $51,595 in 2012, which affects both the unemployment insurance weekly benefit amount and the taxable wage base.

And, as the Department of Labor and Industries announced yesterday, it also affects workers’ compensation benefits. Time-loss and pension benefits will increase by 3.4 percent for fiscal year (FY) 2014.

As a result of the increase, the new maximum monthly benefit will be $5,159.50, or 120 percent of the state’s average monthly wage. Less than 4 percent of L&I claimants receiving wage-replacement benefits collect the maximum.

For FY 2013, there was a 3.6 percent cost-of-living adjustment (COLA). The FY 2012 COLA was suspended as part of the workers’ compensation reforms passed by the legislature that year.