The amount of money an injured worker can receive depends on several factors, including the severity of the injury and the worker’s average weekly earnings before the injury. Workers’ compensation aims to provide fair financial assistance, but it does not fully replace the worker’s regular income. Knowing how these payments work can ease some of the stress that comes with being unable to work.
The calculation of lost wages
Workers’ compensation pays a portion of the worker’s lost wages, typically about two-thirds of their average weekly earnings. This calculation considers the worker’s income before the injury and the extent of the disability caused by the injury. However, the state sets a maximum weekly amount, which changes annually. For 2024, it is $242.86 at a minimum and $1,619.15 per week at a maximum.
The types of workers’ compensation
There are two main types of disability payments: temporary and permanent. Temporary disability benefits apply when the worker is unable to work for a limited time. Once the worker recovers or reaches maximum medical improvement, these payments stop.
Permanent disability benefits apply if the injury results in a lasting disability that affects the worker’s ability to earn a living. The amount of these payments depends on the severity of the disability.
Managing finances during recovery
Understanding the structure of workers’ compensation benefits allows injured workers to plan more effectively during their recovery period. By managing expectations and knowing what support is available, you can better navigate the financial challenges that arise when an injury temporarily or permanently limits your ability to work.
