Average Monthly Wage (AMW)

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Definition - What does Average Monthly Wage (AMW) 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 for various insurance calculations, including those related to workers' compensation, disability insurance, and social security. The higher the wage, the higher the benefit, typicaly.

Insuranceopedia explains Average Monthly Wage (AMW)

Average monthly wage calculations are used by the Social Security Administration to figure out how much each person will receive in monthly payouts after they reach retirement age. In general, the average monthly wage for the top 35 years of a person's earnings are taken into consideration when calculating benefits.


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