Workers' compensation benefits in New Jersey and Pennsylvania are calculated using a statewide average weekly wage as determined by their departments of labor every year. The year of the worker's injury determines the rates that apply.
In New Jersey, a worker's wage loss benefits are based on 70% of his average earnings. The new maximum rate is $1,598.66 per week, and there is a minimum rate of $320.00 per week. NJSA 34:15-12(a) and (b).
New Jersey also has permanency benefits that are capped at 70% of the worker's average earnings or the maximum rate, whichever is less. Benefits are payable based on the extent of the permanent disability. Other than the 70% cap, rates are not calculated using the worker's earnings. There is a minimum rate of $35.00 per week. The rates are located on the annual schedule of disabilities NJSA 34:15-12(c).
In Pennsylvania, wage loss benefits are generally 66 2/3% of the worker's average earnings, subject to the new maximum rate of $1,394.00 per week. If the worker's earnings are $774.43 per week or less, the rate is 90% of that amount. If the earnings fall on or between $1,045.50 and $774.44 per week, there is a flat rate of $697.00 per week. The Pennsylvania schedule is summarized in blocks. Section 105.1 of the Act 77 PS 525.1.
The increase in rates from last year is 3.5%, and that also gets applied to medical benefits in Pennsylvania.
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