If you’re not sure how to calculate workers’ compensation benefits, you at least know it’s a difficult task. Plus, it’s not necessarily based on your current salary or even your average pay scale by employment sector. Here’s a brief breakdown of exactly what you need to know about how to calculate workers’ compensation benefits:
How to Calculate Workers’ Compensation Benefits Using Your Average Weekly Wage (AWW)
Average weekly wage (AWW) is an important metric in the world of workers’ compensation, and it varies by state. Each state uses its AWW to calculate the maximum amount of workers’ compensation money you can receive. Individual states use different guidelines for reporting average compensation numbers to the Superintendent of Insurance. These calculated averages help insurance companies better determine the amount of money you should receive for your injury or illness.
You’ll receive either the full or half the maximum amount as calculated by the AWW, depending on whether you’re fully or partially disabled. They determine this based on how much your injury or illness affects your life and ability to perform job tasks. You’ll earn 2/3 your usual paycheck if you’re physically able to go back to work, but cannot do the same duties as before. It’s important to know that this amount differs from the maximum earnings allowed, according to your AWW. Ultimately, the severity of your injury or illness determines if your employer’s insurer considers you permanently, temporarily, partially, or fully disabled.
How to Calculate Workers’ Compensation Benefits Broken Down Into Weekly Payments
Not sure how to calculate workers’ compensation benefits you may be owed on a weekly basis? First, you’ll need to know your AWW and the percentage of disability your doctor has determined applies to you. Once you have gatherer that information, here’s how you can calculate your benefits:
- Take your AWW (determined by your state) and multiply it by 2/3.
- Multiply that number by the percentage of disability your doctor assigns you. Your doctor will assign you a percentage of disability, likely in increments of 10, from 0 to 100%.
- The result should be your weekly benefit amount.
It’s important to note that your maximum possible weekly benefits will not change. That remains true even if the state establishes a new AWW after your benefits begin. Your workers’ comp benefits are always based on the AWW at the time a doctor confirmed your eligibility for benefits.
How to Calculate Workers’ Compensation Benefits Using Your Current Paycheck Frequency
Most states pay workers’ compensation benefits either weekly or biweekly. The amount of money you qualify for entirely depends on your disability status. There are three statuses that may apply to your case:
- Temporary total disability – You can only receive these payments while your injury heals and you’re still unable to work.
- Temporary partial disability – You’ll get this payment if you cannot work full-time (40 hours per week), but can work some hours.
- Permanent partial disability – If your injury partially disables you for life, you’ll get this payment once your state halts all temporary disability payments.
Fully disabled workers likely need to apply for Social Security disability benefits once workers’ comp payments run out.
You May Qualify for Legal Assistance
If you’re injured or get sick on the job, secure legal representation today to get the most financial compensation you deserve faster. All workers’ comp attorneys in our network offer free, no-obligation consultations to those who qualify. Since these attorneys also work on contingency, you’ll owe $0 in legal fees unless your case wins. And if you do win, then you’ll only pay a small, one-time fee.
Ready to see if you may qualify? Click the button below to start your free workers’ compensation benefits evaluation online now!