How to Calculate Workers’ Compensation Benefits

August 22, 2025

Workers’ Compensation benefits provide essential financial support for employees who sustain a workplace injury or develop an occupational illness. Understanding how these benefits are calculated can help you plan for your recovery and ensure you receive the compensation you are entitled to.

What Is the Basis for Workers’ Compensation Calculations?

Your Average Weekly Wage (AWW) is the foundation for calculating most Workers’ Compensation benefits. It typically includes:

• Regular base pay
• Overtime pay
• Bonuses and tips
• The reasonable value of benefits such as housing, meals, or lodging provided by your employer

In Maryland, your AWW is generally calculated using the 14 weeks immediately preceding your injury, excluding periods of involuntary layoffs or authorized absences.

Temporary Total Disability Benefits (TTD)

If you cannot work at all due to your injury, Temporary Total Disability (TTD) benefits provide two-thirds (66.67%) of your AWW, up to a maximum limit based on the state average weekly wage.

Temporary Partial Disability Benefits (TPD)

If you can return to work but your earnings are reduced due to your injury, you may qualify for Temporary Partial Disability (TPD) benefits. These benefits generally equal 50% of the difference between your pre-injury wages and your current reduced earnings.

Permanent Partial Disability Benefits (PPD)

Once your condition reaches maximum medical improvement, but you still have a permanent impairment affecting your ability to work, you may be eligible for Permanent Partial Disability (PPD) benefits.

Maryland uses a tiered system for PPD benefits:

• Awards of Less Than 75 Weeks: Compensation equals one-third of your AWW, up to $181 per week (2025).
• Awards of 75 to 249 Weeks: Compensation equals two-thirds of your AWW, not to exceed one-third of the state average weekly wage ($468 per week in 2025).
• Awards of 250 Weeks or More (“Serious Disability”): Number of benefit weeks increases by one-third, with compensation capped at 75% of the state average weekly wage.

Factors Affecting Benefit Calculations

• Multiple Jobs: If you held multiple jobs at the time of injury, those wages may be included in your AWW if your injury prevents you from working those jobs.
• Expected Wage Increases: You may include anticipated wage increases due to experience or promotions if they would have occurred under normal circumstances.

Minimum Benefit Requirements

Maryland ensures minimum weekly benefits for low-wage workers:

• Permanent Partial Disability: Minimum $50 per week, unless your actual AWW is lower; no PPD benefits can be less than $25 per week.
• Permanent Total Disability: Minimum $50 per week, regardless of pre-injury wages.

Duration of Benefits

• Temporary Total Disability: Up to 1,000 weeks (approximately 19 years), depending on recovery.
• Permanent Total Disability: Can continue for life if the condition prevents you from working.
• Permanent Partial Disability: Limited to a specific number of weeks based on severity and location of impairment.

Disputing a Benefit Calculation

If you believe your benefits were miscalculated, you can request a hearing with the Maryland Workers’ Compensation Commission. The Commission can adjust your benefits if your AWW or other calculations were incorrect.

Frequently Asked Questions

1. How is my average weekly wage calculated if I work part-time?
   It may be based on what a similar full-time employee earns or your expected full-time schedule.
2. Are overtime hours included in my AWW?
   Yes. Overtime, bonuses, tips, and other regular compensation are included.
3. What if I was employed for only a few days before my injury?
   Wages from a similar employee with comparable duties can be used to establish your AWW.
4. Can I receive benefits for a pre-existing condition?
   Yes, if your work injury aggravated or worsened a pre-existing condition, though calculations may be more complex.
5. How often are maximum benefit amounts updated?
   Maryland updates compensation rates annually, typically effective January 1 of each year.

Contact Our Baltimore Workers’ Compensation Lawyers at LeViness, Tolzman & Hamilton

Our experienced Baltimore Workers’ Compensation lawyers at LeViness, Tolzman & Hamilton can help you understand and maximize your benefits. Call 800-547-4LAW (4529) or complete our online form for a free consultation.

We have offices in Baltimore and Owings Mills, allowing us to represent clients in Maryland, including those in Anne Arundel County, Baltimore County, Carroll County, Harford County, Howard County, Montgomery County, Maryland’s Western Counties, Prince George’s County, Queen Anne’s County, Southern Maryland, and the Eastern Shore, as well as the communities of Catonsville, Essex, Halethorpe, Middle River, Rosedale, Gwynn Oak, Brooklandville, Dundalk, Pikesville, Nottingham, Windsor Mill, Lutherville, Timonium, Sparrows Point, Ridgewood, and Elkridge.