How Are Workers’ Compensation Benefits Calculated?

Since each case is unique, it is important to speak with an experienced attorney who can take all of your unique circumstances into consideration when determining how much you are entitled to.

how are workers compensation benefits calculated

If you own a business in the state of Missouri that employs more than five employees, or one in the construction industry, it is mandatory that you carry workers’ compensation coverage.

Workers’ compensation is a type of insurance policy coverage that seeks to protect workers if they are injured while working. It also seeks to ensure employers who have a serious injury while their workers are engaged in work-related activities, won’t end up losing it all paying for one bad accident.

How Is Workers’ Compensation Eligibility Determined?

Workers’ compensation eligibility is not determined by fault. That means that you don’t have to prove that anyone acted negligently and that it was their negligent act that led to your injury.

However, you do have to prove that you were engaged in activities that were both under the scope and the authority of your employment duties. If you can prove that your injury is eligible for workers’ compensation, then there are specific calculations about how much you are entitled to.

The most important factor in determining how much you are eligible to collect in workers’ compensation is the amount of money that you earn on average on a weekly basis. That is why it is critical to calculating correctly how much you make on a weekly basis.

If you are off in your calculation, it can make a difference of hundreds or even thousands of dollars over the course of your workers’ compensation benefits package.

How to Calculate Your Average Weekly Earnings?

If you have been employed in the same position for five days weekly for more than a year, then the AWW, or the average weekly wage, can be calculated using the “260 multiplier”.

The way that you calculate what you are entitled to is to take your wages in total for the year before the injury, and then divide that by the number of days you were employed. That will give you your “daily wage”.

Then, take that number and multiply it by 260 days, which is the number of days that someone who works five days a week over the course of a year will work. Once you get that quotient, divide it by 52 weeks, to get your AWW.

What If You Haven’t Been Employed in the Same Position or Industry for a Full Year?

If you either haven’t worked in the same position or the same industry for an entire year before your injury, then it is possible for your employer to supply you with similar worker’s wages information so that you can use their information to calculate your AWW.

Although not specifically your wages, using another employee in the same industry to evaluate what you make, is a fair estimate to know what you are entitled to.

If you are injured while on the job, it is important to know what you would have made if you weren’t hurt to know what you are entitled to. To help you get all that you deserve, it is an excellent idea to speak with a Missouri workers’ compensation lawyer to help you get what you need to get you through your injury until you can return to work. Since each case is unique, it is important to speak with an experienced attorney who can take all of your unique circumstances into consideration when determining how much you are entitled to.

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Updated: August 23, 2019

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