How to Calculate a Permanent Partial Disability Claim

Permanent partial disability is paid to workers based on their disability ratings.

According to the Social Security Administration, permanent partial disability cases are the most common type of disability case. Over half of all disability cases are a permanent partial disability claim. The amount you can receive from an insurance company for permanent partial disability is determined by a formula that takes into consideration several factors, such as your disability rating, age and current income. Although the general formula applies to all states, the permanency disability rating and maximum wage in each state varies widely, so your final permanent partial disability claim can change a lot depending on the state you claim from.

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Step 1

Ask your authorized treating physician to give you a disability rating or whole person rating. This rating reflects the percentage of your whole person affected by the permanent disability. It is based on the impairment level caused by the disability and which body parts are affected. Each state has its own rules regulating disability ratings. For instance, in Oregon, it is governed by Oregon Revised Statute 656.726.

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Step 2

Multiply your disability rating by 400. This was a number set by the legislature when the permanent partial disability formula was enacted into law. If you have a disability rating of 10 percent, the result would be 40. This is your adjusted disability rating.

Step 3

Calculate your average weekly wage before the accident, and multiply it by 0.667. This is two thirds of your average weekly income. If your weekly income was $400, then your result would be $266.80.

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Step 4

Write down your age and education factor. The way this is calculated varies by state. In Oregon, for instance, anyone age 40 or older receives an age factor of one, and everybody else receives a zero. This is added to your education factor, which ranges from zero for workers without a high school diploma or a GED to five for workers with special vocational training.

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Step 5

Multiply your adjusted disability rating by your adjusted weekly income. Multiply that by your age factor. For instance, if you have a disability factor of 10 percent, an adjusted weekly income of $266.80 and you are 40 years of age without any secular education, you would have a permanent partial claim of $10,672.

Warning

Note that there are limits to how much you can receive in a permanent partial disability claim, based on your disability rating. For example, if you have a disability rating of 25 percent or less, your maximum claim is $75,000. This includes any temporary disability payments you received before claiming for a lump sum.

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