HOW IS WORKERS COMPENSATION CALCULATED AND HOW MUCH MONEY TO EXPECT
How Much Money Will I get from my Workers Compensation Claim and How is it Calculated?
According to the Workers’ Compensation Act, injured workers are entitled to wage-loss benefits equal to two-thirds of their weekly wage for a work-related injury. However, there are minimum and maximum adjustments provided in the Act, and the benefit rate is set using the average statewide weekly average determined for the year the injury occurred. The maximum is based on the Department of Labor and Industry’s calculation of the statewide average weekly wage.
The average weekly wage is calculated based on your total of all gross wages from every employer you have at the time of your injury. Your average weekly wage includes overtime, bonuses, tips that you reported to the IRS, vacation pay, and even payments for lodging.
If you receive the same amount each week, your average weekly wage is your gross weekly paycheck. If you are an hourly worker, your average weekly wage will depend on how long you have worked for the employer where you were injured.
In addition, there are minimum and maximum benefits. The maximum amount you can receive depends on the Department of Labor and Industry’s calculation of the statewide average weekly wage. If you are injured at work, the schedules provided on the Pennsylvania Department of Labor and industry site provide weekly rates.
2026 Pennsylvania Workers’ Compensation Rate Schedules
According to the Department of Labor & Industry, pursuant to the Workers’ Compensation Act, Section 105.1 and 105.2, the maximum compensation for injuries occurring on and after January 1, 2026, shall be $1,394.00 per week. This reflects the updated statewide average weekly wage as calculated by the Department and is used in determining the maximum workers’ compensation wage-loss benefit for 2026.
Under the 2026 rate schedule, injured workers whose average weekly wage places them within the standard benefit range will continue to receive 66 ⅔ % of their average weekly wage within the designated brackets; those with lower pre-injury earnings may fall under fixed-rate or 90 % tiers as outlined by statute. The updated 2026 maximum ensures that weekly benefits reflect current wage levels and economic conditions in Pennsylvania
2025 Pennsylvania Workers’ Compensation Rate Schedules
Pursuant to the Workers’ Compensation Act, Section 105.1 and 105.2, the Department of Labor & Industry has determined the maximum compensation for injuries occurring on and after January 1, 2025, shall be $1,347.00 per week. For purposes of calculating updates to wage-loss benefits and payments for medical treatment rendered on and after January 1, 2025, the percentage increase in the statewide average weekly wage is reflected in the updated rate schedule set by the Department.
Under the 2025 schedule, the weekly compensation rate is 66 ⅔ % of the employee’s average weekly wage when that wage falls between the applicable upper and lower thresholds defined by the statewide average. For workers with lower average weekly wages, fixed or higher-percentage tiers (such as 90 % of average weekly wage) apply as appropriate under the Act. No injured worker may receive weekly benefits in excess of the statutory maximum of $1,347.00 for injuries occurring in calendar year 2025.
2024 Pennsylvania Workers’ Compensation Rate Schedules
Pursuant to the Workers’ Compensation Act, Section 105.1 and 105.2, the Department of Labor & Industry has determined the maximum compensation for injuries occurring on and after Jan. 1, 2024 shall be $1325.00 per week. For purposes of calculating the update to the payments for medical treatment rendered on and after Jan. 1, 2023, the percentage increase in the statewide average weekly wage is 4.0 percent.
The maximum weekly compensation rate for the calendar year 2024 is $1325.00. The weekly compensation rate is to be 66 2/3 percent of the employee’s average weekly wage falls between $1,987.50 and $993.76. The weekly compensation rate is $662.50 if the employee’s average weekly wage is between $993.75 and $736.11, and 90 percent of the employee’s average weekly wage if it is $736.10 or less.
2023 Pennsylvania Workers’ Compensation Rate Schedules
Pursuant to the Workers’ Compensation Act, Section 105.1 and 105.2, the Department of Labor & Industry has determined the maximum compensation for injuries occurring on and after Jan. 1, 2023 shall be $1273.00 per week. For purposes of calculating the update to the payments for medical treatment rendered on and after Jan. 1, 2023, the percentage increase in the statewide average weekly wage is 5.7 percent.
The maximum weekly compensation rate for the calendar year 2023 is $1,273.00. The weekly compensation rate is to be 66 2/3 percent of the employee’s average weekly wage falls between $1,909.50 and $954.76. The weekly compensation rate is $707.21 if the employee’s average weekly wage is between $954.75 and $707.22, and 90 percent of the employee’s average weekly wage if it is $707.21or less.
2022 Pennsylvania Workers’ Compensation Rate Schedules
Pursuant to the Workers’ Compensation Act, Section 105.1 and 105.2, the Department of Labor & Industry has determined the maximum compensation for injuries occurring on and after Jan. 1, 2022 shall be $1205.00 per week. For purposes of calculating the update to the payments for medical treatment rendered on and after Jan. 1, 2022, the percentage increase in the statewide average weekly wage is 6.6 percent.
The maximum weekly compensation rate for the calendar year 2022 is $1,205.00. The weekly compensation rate is to be 66 2/3 percent of the employee’s average weekly wage falls between $1,807.50 and $903.76. The weekly compensation rate is $602.5.00 if the employee’s average weekly wage is between $903.75 and $669.44, and 90 percent of the employee’s average weekly wage if it is $669.43 or less.
2021 Pennsylvania Workers’ Compensation Rate Schedules
Pursuant to the Workers’ Compensation Act, Section 105.1 and 105.2, the Department of Labor & Industry has determined the maximum compensation for injuries occurring on and after Jan. 1, 2021 shall be $1,130.00 per week. For purposes of calculating the update to the payments for medical treatment rendered on and after Jan. 1, 2021, the percentage increase in the statewide average weekly wage is 4.6 percent.
The maximum weekly compensation rate for calendar year 2021 is $1,130.00. The weekly compensation rate is to be 66 2/3 percent of the employee’s average weekly wage falls between $1,695.00 and $847.51. The weekly compensation rate is $565.00 if the employee’s average weekly wage is between $847.50 and $627.78, and 90 percent of the employee’s average weekly wage if it is $627.77 or less.
2020 Pennsylvania Workers’ Compensation Rate Schedules
Pursuant to the Workers’ Compensation Act, Section 105.1 and 105.2, the Department of Labor & Industry has determined the maximum compensation for injuries occurring on and after Jan. 1, 2020 shall be $1081.00 per week. For purposes of calculating the update to the payments for medical treatment rendered on and after Jan. 1, 2020, the percentage increase in the statewide average weekly wage is 3.1 percent.
The schedules provided on the Pennsylvania Department of Labor and industry site provide weekly rates from calendar year 2015 to 2018. The maximum weekly compensation rate for calendar year 2020 is $1,081.00. The weekly compensation rate is to be 66 2/3 percent of the employee’s average weekly wage falls between $1,621.50 and $810.76. The weekly compensation rate is $540.50 if the employee’s average weekly wage is between $810.75 and $600.56, and 90 percent of the employee’s average weekly wage if it is $600.55 or less.
2019 Pennsylvania Workers’ Compensation Rate Schedules
Pursuant to the Workers’ Compensation Act, Section 105.1 and 105.2, the Department of Labor & Industry has determined the maximum compensation for injuries occurring on and after Jan. 1, 2019 shall be $1,049.00 per week. For purposes of calculating the update to the payments for medical treatment rendered on and after Jan. 1, 2019, the percentage increase in the statewide average weekly wage is 2.3 percent.
The maximum weekly compensation rate for calendar year 2019 in Pennsylvania is $1,049.00. The weekly compensation rate is to be 66 2/3 percent of the employee’s average weekly wage falls between $1,573.50 and $786.76. The weekly compensation rate is $524.50 if the employee’s average weekly wage is between $786.75 and $582.78, and 90 percent of the employee’s average weekly wage if it is $582.77 or less.
2018 Pennsylvania Workers’ Compensation Rate Schedules
The maximum weekly compensation rate for calendar year 2018 in Pennsylvania is $1,025.00. The weekly compensation rate is to be 66 2/3 percent of the employee’s average weekly wage falls between $1,537.50 and $768.76. The weekly compensation rate is $512.50 if the employee’s average weekly wage is between $768.75 and $569.44, and 90 percent of the employee’s average weekly wage if it is $569.43 or less.
Additional Informattion
There are other potential factors in calculating your average weekly wage. Our law firm has found that the average weekly wage is one of the most frequently miscalculated items by workers’ compensation insurance carriers. Because these errors can result in significant money over time, you should work with an experienced workers’ compensation attorney if you suspect that your average weekly wage is not accurate.
You can learn more about the workers compensation system and workers compensation benefits in Pennsylvania by visiting the Bureau of Workers’ Compensation site or exploring our website.
Our law firm handles workers’ compensation claims in Philadelphia and other Pennsylvania cities. For our clients’ benefit, we provide a handbook with answers to common workers’ compensation questions. To request a copy, visit our workers’ compensation handbook page.