by Karl Voigt
The Bureau of Workers’ Compensation has announced the statewide average weekly wage for 2014. This directly affects workers who are injured in 2014. Generally, workers’ compensation is paid at 66 2/3% of an injured worker’s average weekly wage, up to a maximum as defined by the statewide average weekly wage. Section 105.1 of the Pennsylvania Workers’ Compensation Act requires the Bureau to calculate and publish the statewide average weekly wage so that statewide maximum compensation rates can be calculated. The statewide average weekly wage for injuries occurring on and after Jan. 1, 2014, is $932.00 per week. This represents a s 1.6 percent increase from last year.
As a result, the maximum weekly benefit an injured worker can now collect is $932.00. Therefore, any injured worker who earns more than $1,398.00 a week will be limited to this figure, no matter how much more they earn. Anyone whose preinjury earnings are between $1,398.00 and $699.01 a week will receive 66 2/3% in workers’ compensation. Anyone who earns between $699.00 and $517.78 a week will receive $466.00, which is half of the statewide average weekly wage. Anyone who earns $517.77 or less will receive 90% of their preinjury wage.
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Does 1.6% even mitigate the effect of inflation at all? Or is it with the current rate inflation taken into account, make a person receiving benefits get less than it would be last year?
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The 1.6% is directly tied to actual Pennsylvania wages, as tracked by the Department of Labor and Industry. Per the Act, this figure governs the maximum workers’ compensation rate.
This 1.6% is, however, pretty consistent with the nationwide 1.5% cost of living increase during 2013.
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True. I guess the legislature thought about inflation effects being (indirectly) taken care of by calculating based on actual wages. It is unfortunate that a workers potential benefits are capped.
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