How to Calculate Workers’ Compensation Benefits

Calculating Workers’ Compensation Benefits

 If you’ve tried to calculate workers’ compensation benefits, you know it’s a difficult task—and it’s not necessarily based on your current salary or pay scale. Here’s a brief breakdown of exactly what you need to know about how to calculate workers’ compensation benefits:

 Average Weekly Wage (AWW)

 Average weekly wage (AWW) is an important metric in the world of workers’ compensation. AWW varies by state and is used to calculate the maximum amount of money that individuals applying for workers’ compensation can receive. Different sets of guidelines are usually used by individual states when it comes to 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.

 Claimants will either receive full or half of the maximum amount as calculated by the AWW, depending on whether they are fully or partially disabled. This is determined based on how much the injury or illness affects the individual’s life and ability to earn a living. Those who are physically able to go back to work but cannot do the same duties they did before may earn up to 2/3 the difference, which differs from the maximum earnings according to the AWW.

 The Dollar Amount You May Expect

 To calculate your weekly benefits, 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 even if new AWW later is established in your state. Your benefits will always be calculated based on the AWW at the time of your injury.

 How Often You Get Paid

 Individuals who qualify for workers’ compensation benefits are paid on a weekly basis. The amount of money received will greatly depend on your disability status. There are three statuses you may fall under:

  • Temporary total disability – This type of payment is received while the worker is healing from the injury and unable to work.
  • Temporary partial disability – This type of payment is received if the worker is too injured or sick to work full time (40 hours per week), but is still able to work part time.
  • Permanent partial disability – Individuals who’ve recovered from an injury or disease and all temporary disability payment have stopped, will receive this type of payment.

 If you have been injured or incurred an illness while on the job, contact legal representation today to get the financial compensation you deserve.

Get a free evaluation of your workers’ compensation claim and determine if you meet your state’s eligibility requirements for permanent disability.

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