Injury victims need to know how to calculate weekly workers compensation benefits. In a worker’s compensation claim, the weekly rate of compensation can substantially impact the total compensation award that you may be entitled to receive for an on the job injury.
Compensation in a workers compensation case signifies the weekly payment that you receive after an injury that occurred in the course and scope of employment, assuming you are medically unable to work (temporarily or permanently).
The compensation rate is based on 2/3rds of the average weekly wage (AWW) – the gross wage (before deductions) you made before you got hurt. This forms the basis for the weekly compensation you receive. Simply put, to calculate your weekly workers compensation benefits, take 2/3rds of your gross “pre-accident” AWW.
Take for example, a gross average weekly wage of $300 at the time of injury. Multiply that by 2/3rds. That weekly compensation rate would be $200, or 2/3rd of your average weekly wage. The benefits that you receive are not taxable.
Your weekly compensation rate is calculated on the 52 week period immediately before the injury occurs. If your work history is shorter than 52 weeks, the calculation of your AWW is adjusted based on the number of weeks you worked (for that employer) prior to the injury. In any case, you are covered by Worker’s Compensation law as soon as you begin employment.
Other additional factors that may weigh into the calculation of your weekly compensation rate are:
- Part time or seasonal employment
- Commissions earned
- Fringe benefits
- Employees who work more than one job
