Workers’ compensation does cover lost wages in Pennsylvania, but not your full paycheck. Caroline Munley of Munley Law breaks down exactly how the calculation works, what the 66 and 2/3 percent rule means for your weekly benefit, and what you should know about taxes on workers’ comp income.
Workers’ compensation in Pennsylvania does pay for lost wages — but not your full paycheck. Here’s exactly how the calculation works.
If you’re out of work because of a work-related injury, Pennsylvania workers’ comp replaces a portion of your lost income while you recover. The amount is based on your average weekly wage — essentially what you typically earned before the injury. You receive 66 and 2/3 percent of that figure, tax-free, while you’re unable to work.
One thing that surprises a lot of workers: you don’t pay taxes on workers’ compensation benefits in Pennsylvania. So while the weekly amount is less than your normal paycheck, the after-tax difference is smaller than it looks.
What You Should Know About Lost Wages
Your average weekly wage is calculated based on your earnings before the injury. It’s important to make sure your employer reports your wages accurately — errors in that calculation are more common than most people realize.
If you worked multiple jobs at the time of your injury, wages from all jobs may be included in the calculation.
If you return to modified-duty or light-duty work at reduced hours or pay, your benefit amount adjusts accordingly.
The 66 and 2/3 percent figure is set by Pennsylvania law — it’s not something the insurance company negotiates with you. But how your average weekly wage gets calculated can be disputed, and an experienced workers’ comp attorney can ensure the number the insurer uses is correct.
Injured and out of work in Pennsylvania? Call Munley Law for a free workers’ compensation consultation with Caroline Munley, a certified workers’ comp specialist. No fee unless we win.
