How to Calculate Worker's Compensation

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If you suffer an accident at work that renders you unable to work for any period of time, you may qualify for Worker's Compensation. Worker's Compensation is a setup to protect those who become injured at work and miss out on employment and wages from it. Worker's Compensation can protect you when you need it the most, but how is it calculated? A few different factors are taken into consideration.

Step 1

Determine the amount of the lost wages that will incur due to the injury. For instance, if a doctor says that you cannot work for 6 weeks, you would calculate 6 weeks worth of lost wages. If the wages fluctuate due to hours, an average wage amount from the last 52 weeks should be taken and multiplied by the amount of weeks that you are unable to work.

Step 2

Determine which type of Worker's Compensation benefits you will be applying for. There is Temporary Total Disability Benefits, for those who are injured so badly that they will not be returning to work for a period of time; Temporary Partial Disability Benefits, for those who can return to work, but not earn as much money as they did doing their previous job; or Permanent forms of both types of benefits, which mean that the effects of the injury will never go away.

Step 3

Calculate 66 2/3 of your average weekly wage to discern how much you are eligible for, for both Total and Partial Temporary Benefits. This is the amount that you will be paid per week through Worker's Compensation.

Step 4

Multiply the amount of weeks that you are eligible for coverage (up to 300) for Permanent Partial Disability Benefits, by $220, the maximum amount of Partial Permanent Weekly Coverage that you are allowed. This will be the amount you can receive for Partial Disability. Permanent Total Disability Benefits will be paid over the course of your life, with no limit as to how long the benefits can be paid, as long as you never regain the ability to work in the future.