How To Calculate Workers’ Compensation Benefits

Published on Aug 25, 2023 at 7:23 pm in Workers Compensation.

How To Calculate Workers' Compensation Benefits
Do you know how to calculate workers’ compensation benefits in Maryland? The workers’ comp attorneys from Belsky & Horowitz, LLC explain the different types of workers’ compensation benefits and how to calculate them.

In our state, the Maryland Workers’ Compensation Commission (WCC) recognizes several different types of benefits that qualified employees (or their family members) may be eligible to receive for an occupational injury, illness, or death.

Maryland Workers’ Compensation Benefits Include:

  • Temporary Total Disability Benefits
  • Temporary Partial Disability Benefits
  • Permanent Total Disability Benefits
  • Permanent Partial Disability Benefits
  • Medical/Hospitalization Benefits
  • Wage Reimbursement Benefits
  • Vocational Rehabilitation Benefits
  • Death and Funeral Benefits

We’ll provide general information about how to calculate each of these types of workers’ compensation benefits. But keep in mind that each work-related injury, illness, or death case is unique.

If you have questions about your own case or wonder which type of benefits you may be eligible for, please reach out to Belsky & Horowitz, LLC to discuss your case directly with an attorney. There is no charge for an information session at our law office.

Temporary Total Disability Benefits

Temporary total disability (TTD) benefits are provided during the period you are recovering from your injuries. It’s expected that you will miss time from work, but will be able to make a full recovery and return to your job after healing.

If you miss 14 days or less, you can’t receive payment for the first three missed days. After 14 missed days, you are eligible to recover benefits for the first three days.

TTD benefits are calculated based on 2/3 of your average weekly wage (AWW), which is based on the average of your wages for the 14 weeks preceding your injury. Benefits should not be less than $50.00 a week, even if the individual’s average weekly wage would entitle them to less.

Calculating 2/3 of your AWW cannot give you an amount that exceeds the average Maryland weekly wage. This is a state-wide rate calculated annually by the Department of Labor, Licensing and Regulation (DLLR), and is used by the WCC when calculating benefits.

Temporary Partial Disability Benefits

Temporary partial disability (TPD) benefits are provided when the covered employee can continue to work in some capacity, but not to the full level they were able to work prior to the injury. These benefits are also given for a limited amount of time, with the expectation that the employee will eventually return to their normal full-time role.

When working fewer hours or performing limited duties, the employee is at a reduced income level, and TPD benefits make up for some of that lost income.

TPD compensation is calculated by finding 50% of the difference between your AWW and your earning capacity while temporarily partially disabled. The amount may not exceed 50% of the Maryland state average weekly wage.

Permanent Total Disability Benefits

Permanent total disability (PTD) benefits are given when you are permanently unable to work at all due to a very serious injury or illness. This is usually the last step after physical and vocational rehabilitation efforts have been made, and the former employee is still unable to hold employment because of their condition.

PTD benefits are also calculated based on 2/3 of the AWW, not exceeding the Maryland state average weekly wage. They will typically last permanently, or until the individual is no longer disabled.

Under Maryland law, losing (or losing the function of) any of the following body parts makes the injured victim eligible for PTD:

  • Both arms
  • Both eyes
  • Both feet
  • Both hands
  • Both legs
  • Any combination of the loss of two or more out of: an arm, eye, leg, hand, or foot

Permanent Partial Disability Benefits

Permanent partial disability (PPD) benefits are for covered employees who suffer some level of permanent disability, but are still able to work in some capacity.

If eligible, employees can be granted a minimum of $50.00 a week under PPD, unless their AWW was less than that before the injury. If their AWW was less than $50.00, they will receive an amount equal to their AWW at the time of the injury.

How long you can receive PPD benefits is based on the level and type of injury.

Maryland categorizes different injuries by tiers, with lower tiers granting benefits for shorter amounts of time. You may receive benefits for a period ranging from less than 75 weeks to more than 250 weeks.

The amount of compensation you recover is also variable based on the details of your injury. Depending on the nature and severity of the injury, you may be eligible for 1/3 of your AWW, 2/3 of your AWW, 75% of your AWW, or another amount, subject to annual caps and certain specified limits in consideration of the current state average weekly wage rate.

Calculating PPD benefits is more complex than other types of benefits. If you’re not sure whether you’re receiving the full amount you deserve, speak with a workers’ comp lawyer from Belsky & Horowitz, LLC who can evaluate your case at no cost to you.

Medical/Hospitalization Benefits

Compensable work-related accidental injuries, hernias, and occupational diseases may entitle workers to additional medical or hospitalization benefits on top of disability benefits. Medical services may need to continue indefinitely or for the lifetime of the injury or illness.

Medical/hospitalization benefits may include:

  • Hospital and nursing services
  • Prescription medications
  • Crutches or other assistive medical devices
  • Prosthetic devices after the loss of an arm, hand, foot, leg, or other body part

It is essential to keep all documents, test results, physician’s notes, medical bills, records of hospitalization, and other information related to the medical services received, including the dates, times, and locations of appointments. Do not throw away any documentation related to your accident or injuries.

Wage Reimbursement Benefits

If you’re eligible, you may also be able to recover wage reimbursement benefits for time you missed work because you were:

  • Going to a physician’s exam at the request of your employer or the insurance company
  • Attending a Workers’ Compensation Commission hearing related to your case
  • Traveling to or from any necessary appointments related to your workers’ comp case

To fully calculate these wage reimbursement benefits, it’s important to keep track of all missed work time, records of your doctor’s visits and Commission hearings, and gas mileage or other transportation receipts you incurred while commuting to and from appointments.

Vocational Rehabilitation Benefits

Vocational rehabilitation benefits are not financial benefits paid to you in money. Rather, this is a category of benefits that can help injured workers find new work when they’re no longer able to perform their old job duties. You can receive these benefits for up to 24 months.

Voc rehab benefits can encompass:

  • Vocational evaluation and assessment
  • Vocational counseling
  • Help developing a vocational rehabilitation plan
  • Monitoring of a vocational plan
  • Training and development for a new career
  • Job placement assistance
  • Coordination of medical services

Death and Funeral Benefits

Eligible dependents of an employee who suffered a fatal injury on the job may be entitled to file a Dependent’s Claim for Death Benefits with the MD Workers’ Compensation Commission. Multiple dependents (including spouses, children, and other close relations) are permitted to file jointly for death benefits.

The amount recoverable will depend on whether the dependent(s) were wholly or partially dependent on the deceased individual at the time of the work-related death, among other factors. For wholly dependent individuals, the maximum recoverable amount in death benefits is 2/3 of the worker’s average weekly wage at the time of their death.

In order to recover funeral benefits, the surviving dependents must submit proof of the life-celebration services purchased on behalf of the decedent. A Certification of Funeral Expenses form must be completed and submitted by a mortician or funeral director licensed in the state of Maryland.

Calculating workers’ compensation benefits after the death of an employee is highly contingent upon the circumstances of the individual case. It’s best to contact a workers’ compensation attorney for help recovering benefits after a loved one’s death.

Get in Touch With Belsky & Horowitz, LLC With Questions

Our workers’ compensation law firm has a track record of success in helping injured workers in Maryland receive fair treatment.

Contact our office with any questions you may have. We will schedule you for a completely free case evaluation with an attorney on our team.

Contact us on our website or by phone with details about your case.



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