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. 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. It’s important to know that this amount differs from the maximum earnings allowed, according to your AWW. Ultimately, how disabled or sick you are determines whether you’re permanently, temporarily, partially or fully disabled, according to your employer’s insurer.

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 a new AWW later is established in your current state of employment and/or residence. Your workers’ comp benefits will always be calculated based on the AWW at the time a doctor confirmed your workplace injury or occupational illness.

How to Calculate Workers’ Compensation Benefits Using Your Current Paycheck Frequency

 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.

Have An Attorney Explain How to Calculate Workers’ Compensation Benefits You’re Rightfully Owed

If you’re injured or get sick on the job, secure legal representation today to get the most financial compensation you deserve faster.

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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