What does Average Monthly Wage mean? Read on to discover the definition & meaning of the term Average Monthly Wage - to help you better understand the language used in insurance policies.
Average Monthly Wage
A person's average monthly wage (AMW) 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, typically.
We hope the you have a better understanding of the meaning of Average Monthly Wage.