How is workers’ compensation calculated? Workers’ compensation is calculated using your average weekly wage (AWW), which is based on your past earnings, and then you are paid two-thirds of that amount up to a statewide maximum.
This amount can be adjusted depending on certain factors, and in some cases, state schedules for specific body parts or impairment ratings from doctors also play a part in determining the final amount. A South Carolina workers’ compensation lawyer can help to make sure you are paid the full amount that you are owed.
The Basics of Workers’ Compensation
Workers’ compensation is a type of insurance most South Carolina employers must provide. It covers injuries and illnesses that happen on the job without requiring workers to prove their employer was at fault. In return, employees usually cannot sue their employers directly for these injuries. The system provides benefits, including:
- Medical treatment related to your injury.
- Wage replacement while you cannot work.
- Payments for permanent disabilities or loss of function.
- Death benefits for dependents if a worker passes away.
These protections are important, but the calculation of your weekly checks and long-term benefits is where mistakes and disputes often arise.
Average Weekly Wage (AWW): The Foundation
The starting point for how payments are calculated for workers’ compensation is your average weekly wage (AWW). This number is designed to represent what you typically earned before your injury. Your AWW is used to calculate both temporary and permanent disability payments.
Generally, your AWW is based on the past 52 weeks of wages divided by 52. If you worked fewer than 52 weeks, the number of weeks you actually worked is used instead. For seasonal or irregular jobs, the Workers’ Compensation Commission may look at the earnings of a similar employee to come up with a fair number to calculate your workers’ compensation payments.
Since every benefit flows from this calculation, even a small mistake in your AWW can have a big impact on your overall recovery.
How Compensation Rate is Set in South Carolina
Once your AWW is known, your workers’ compensation is calculated. This is the weekly benefit amount you will actually receive while out of work. By law, it equals two-thirds of your AWW, but there is also a statewide maximum, and that may change every year.
For example, if your AWW is $900, your weekly check would be $600. If your AWW is much higher, you may hit the state maximum and receive less than two-thirds of your wages. This cap keeps the system consistent, but it often means higher earners take a bigger financial hit.
Temporary Disability Benefits
When your doctor keeps you out of work, you may qualify for temporary disability payments. These benefits are designed to replace a portion of your wages until you have recovered enough to return to work. In South Carolina, there are two main types of temporary disability benefits.
Temporary Total Disability (TTD)
Temporary total disability benefits apply when your injury prevents you from working at all. During this time, you will receive two-thirds of your average weekly wage, subject to the state’s maximum. Payments usually begin after you have missed seven days of work, but if your absence lasts more than 14 days, you will also be paid retroactively for that first week.
These benefits continue until your doctor determines you have reached maximum medical improvement (MMI), meaning your condition is unlikely to improve further.
Temporary Partial Disability (TPD)
Temporary partial disability benefits apply when you are able to work in some capacity but earn less than you did before the injury. This often happens when a doctor clears you for light-duty or reduced hours. In these cases, workers’ comp pays part of the difference between your old and new earnings.
Like TTD, these benefits last until you reach MMI or return to your full earning capacity. The goal is to make sure you do not lose too much income while you transition back to work.
Permanent Disability Benefits
Unfortunately, not everyone makes a full recovery. When an injury leaves permanent damage, the law provides additional compensation. The type and amount depend on the severity of your injury.
South Carolina has a schedule that assigns a set number of weeks of benefits for the loss of specific body parts. For instance, losing a thumb is worth 65 weeks, while losing a hand is worth 185 weeks. If you lose partial use of a body part, the number of weeks is reduced to match the percentage of impairment.
For injuries that do not fit into the schedule, such as spine or back injuries, benefits are based on up to 500 weeks of pay. In cases of total disability, such as paralysis or brain injury, benefits may last for life.
Other Workers’ Comp Benefits
Workers’ comp is not only about replacing lost wages. There are different types of workers’ compensation. Injured workers may also receive coverage for additional expenses that come with recovery. These benefits are often overlooked but can make a real difference:
- Medical treatment: All reasonable care related to your injury, provided by an employer-approved doctor.
- Mileage reimbursement: Travel costs for trips to and from doctor visits.
- Death benefits: Funeral expenses and weekly payments for surviving dependents.
These benefits show that workers’ comp is meant to provide comprehensive support, not just a partial paycheck.
Challenges in Calculating Benefits
Although the rules may sound straightforward, many often run into problems. Employers and insurance companies may use calculations that favor them instead of you. Sometimes, the disputes come down to details that make a big difference in the final payout, including:
- Employers using a lower average weekly wage to reduce benefits.
- Insurance doctors giving impairment ratings that seem too low.
- Pressure to return to work before you are ready.
- Settlement offers that undervalue permanent injuries.
These challenges are stressful, especially when your number one focus should be healing.
Why You Need Team Shelly Leeke
According to the South Carolina Workers’ Compensation Act, this system is designed to protect workers, but the system is not always easy to navigate alone. Insurance companies have lawyers and adjusters working to limit what they pay out. Having your own advocate levels that playing field. A South Carolina workers’ compensation lawyer can:
- Ensure your AWW is calculated fairly.
- Challenge low impairment ratings with medical evidence.
- Represent you in hearings before the Workers’ Compensation Commission.
- Negotiate settlements that account for your future medical and financial needs.
With the right legal support, you can focus on your recovery while your lawyer makes sure you get every dollar you are entitled to. Trust Shelly Leeke today and book your consultation.
Shelly Leeke Fights for You
After a workplace injury, finances should not add to your stress. Workers’ compensation is there to provide medical care, replace lost income, and support you through recovery. However, the way benefits are calculated can be complex, and mistakes are common.
At Shelly Leeke Law Firm, we fight for injured workers across South Carolina. If you believe your benefits are not being calculated correctly, or if you simply want peace of mind, reach out for a free consultation. We will review your case and stand by your side every step of the way. Call Shelly Now!
