If you have applied for workers’ compensation benefits and have any questions about your claim and any action that may affect the success of your application for benefits, contact Powell, Zero, Mundy today to consult with an experienced Pennsylvania workers’ compensation attorney. Today’s blog clarifies the meaning of the term “disability” under the Pennsylvania Workers’ Compensation Act.

Disability under Pennsylvania law relating to workers’ compensation refers to the loss of wages. This means the injured worker’s inability to return to work at his or her prior rate of earnings or occupation. Wage-loss benefits are calculated using the injured worker’s average weekly wage (AWW) prior to the injury. Wages may include employer-provided room and board, bonuses, incentive pay, vacation pay and gratuities reported for income tax purposes.

If a benefit as calculated is less than 50 percent of the established annual statewide average weekly wage, the benefit payable is the lower of 50 percent of the statewide average weekly wage or 90 percent of the workers’ average weekly wage. Otherwise, the wage-loss benefit is 66-2/3 percent of the AWQW prior to the injury, up to the established statewide maximum.

Wage-loss benefits may be reduced by compensation received through employment and self-employment. Wage-loss benefits for injuries occurring after Aug. 31, 1993, may also be reduced by unemployment compensation benefits received by the injured employee. Wage-loss benefits for injuries sustained after June 24, 1996, can be reduced by 50 percent of Social Security retirement benefits received by the injured worker, in addition to employer-paid severance and pension plan benefits. Wage-loss benefits are not due when the employee is receiving wages equal to or more than the rate of compensation received prior to the work-related injury.