Everything You Need to Know About Wage-Loss Payments in Pennsylvania

When people go to work every day, they usually do not expect the possibility of being involved in an accident. However, it is possible for this to happen at any place of work. In the event that it does, an employee can sustain an injury that prevents them from being able to return to work for a period of time. This can cause many concerns regarding their wages and how they can continue to provide for themselves or their family without work. It is important to note that they can receive workers’ compensation that covers lost wages during this time. Continue reading below to learn more.

How Much are Payments for Lost Wages?

Employees that are injured at work may receive compensation for the wages they lose if they are unable to come back to work due to their injury. In Pennsylvania, the wage-loss benefits an employee can receive are equal to about two-thirds of their average weekly wage. The minimum compensation rate is the lower of 90% of the employee’s average weekly wage or 50% of the statewide average weekly wage. 

It is important to also note that these benefits can be offset for 50% of Social Security benefits, the employer-paid part of the individual’s retirement pension, severance pay, unemployment compensation, or other earnings. Employees should be aware that Pennsylvania law does not allow for an increase in these payments due to the cost of living. 

When are Wage Loss Payments Made?

An employee can receive wage loss payments if they are disabled for more than seven calendar days. This includes the weekends. The benefits are paid on the eighth day after the injury occurs. When the employee is unable to return to work for 14 days, they can receive retroactive payment for their first seven days. If their injury is reported immediately and their claim is accepted by the insurance carrier, the employee should receive their first check within 21 days of their absence from work. Afterward, the payments should be received on a regular basis. 

When do Wage Loss Payments Stop?

When evidence is shown to the employer or insurance carrier that the employee returned to work at a wage equal to or more than their prior earnings, wage-loss benefits can be terminated. Other reasons why wage-loss payments may stop can include:

  • If the workers’ compensation judge stops benefits after a hearing
  • The employee signs a supplemental agreement or an agreement to stop workers’ compensation
  • The 500-week period of partial disability status expires


If you have become the victim of an on the job injury, it may be beneficial to speak with an attorney and the doctor that is treating you to determine how to make the process as easy as possible. AllianceMeds understands that a workplace accident can be challenging and is here to help. We will deliver your medication to your door using overnight delivery and cover any out of pocket expenses that may arise. If you have any questions about how we can help, contact AllianceMeds today.