How Are Workers’ Compensation Benefits Calculated?

Workers' Compensation Form

If you have been injured on the job, you may file a claim for Pennsylvania workers’ compensation benefits to cover your medical care and lost wages. The Pennsylvania Workers Compensation Act provides benefits for injured employees, paid through their employer’s workers’ compensation insurance plan. 

However, figuring out the amount of wage loss benefit you’re entitled to each week can be tricky. If you are unsure if you are receiving the correct benefits amount or have difficulty getting your claim filed or approved, contact a PA workers’ comp lawyer at Calhoon & Kaminsky P.C.

PA Workers’ Comp Formula for Calculating Benefits

The Pennsylvania Department of Labor & Industry released an updated average weekly wage on the first of the year. The maximum weekly wage benefit for Pennsylvania employees injured this year is $1,273.00, an increase of 5.7 percent from the prior year. The Act requires calculating the weekly wage benefit based on your average weekly wage at the time of injury, including:

  • Base pay
  • Bonuses
  • Tips
  • Commissions

Wage benefits are calculated in tiers, like so:

Average Weekly Wage Maximum Benefit
$1,909.51 and above $1,273.00
$954.76 – $1909.50 66.23 percent of weekly wage (up to $1,273.00)
$707.22 – $954.75 $636.50
$707.21 and below 90 percent of the weekly wage

Your specific benefit is calculated on your average weekly wage for the last 52 weeks you worked. If you’re paid by the hour, these weeks are further broken down into 13-week quarters. The highest-earning three quarters are added together and divided by 39 to determine your weekly wage benefit.

PA worker’s comp benefits are available to any employee, even if it’s your first day on the job. If you have not completed at least 13 weeks at that workplace, your weekly wage benefit is calculated using your hourly wage multiplied by the average hours per week your employer would schedule you.

Factors That Affect Lost Wages Benefits

Your wage benefit amount may be affected by a few conditions:

  • Whether you earn commissions or tips
  • Whether you receive bonuses and on what schedule
  • The year you were injured, as the average weekly wage is adjusted each year. 

Your weekly wage benefit may also be less if you can work light-duty or part-time. In that case, you may not receive the full wage benefit but rather a modified one based on your ability to work. 

Do I Need a Lawyer for Pennsylvania Workers’ Comp?

You aren’t required to hire an attorney to file a claim for workers’ compensation benefits. However, suppose your employer doesn’t have workers’ comp insurance and is required to by law. In that case, an attorney can help you pursue compensation for your injuries and other losses by filing a lawsuit against them. Or, if your employer is insured but is denying a valid claim, an attorney can advise you of the next steps to pursue your workers’ compensation claim.

If your claim is denied, you have the right to appeal it before the Workers’ Compensation Board. At this point, you may benefit from having a lawyer draft your appeal for you, complete the paperwork, and argue your case before the Board.

Contact a Workers’ Compensation Lawyer at Calhoon & Kaminsky P.C. Today

Do you need help filing a Pennsylvania workers’ compensation claim? Do you need assistance appealing a claim denial? Contact the legal team at Calhoon & Kaminsky P.C. today for a consultation with an experienced worker’s compensation attorney

 

This article was previously published in Jan 2022 and updated for relevance in Oct 2023.