What are Wage-Loss Payments in Pennsylvania?

People go to work on a daily basis expecting to go through their usual routine. Unfortunately, it is possible for someone to sustain an injury or illness at work, regardless of their profession. Sometimes, this can prevent an employee from returning to work for a period of time. When this happens, it is important to know that they can receive workers’ compensation. This compensation provides them with coverage for any medical bills and lost wages that stem from the injury or illness. Wage-loss payments are provided when employees are unable to return to work after they sustain an injury or an illness. 

How Much are Payments for Lost Wages?

Employees that are injured or become ill on the job may receive compensation for the wages that are lost while they are unable to return to work. In the state of Pennsylvania, wage-loss benefits are equal to about two-thirds of the employee’s 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. 

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. It is important that state law does not allow for an increase due to the cost of living. 

When are the Payments Made?

Employees can receive payments for lost wages if they are disabled for more than seven calendar days, including weekends. The benefits can be paid on the eighth day after an injury occurs. Once the employee is off from work for 14 days, they can receive retroactive payment for the first seven days they were unable to return to work. If the injury or illness is reported immediately and the claim is accepted by the insurance carrier, the individual should receive their first compensation check within 21 days of their work absence. After that, the payments should be received on a regular basis. Temporary compensation payments may be made by the employer or insurance carrier for up to 90 days.

When do they Stop?

When an employer or insurance carrier has evidence that the employee returned to work at a wage equal to or more than their prior earnings, wage-loss benefits can stop. In the event of temporary compensation, the employee may be notified by their employer or insurance carrier that they are stopping benefits because they are not accepting their claim.

There are other reasons as to why wage-loss payments may stop. This 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.