Archive for January, 2026

The Pennsylvania Department of Labor & Industry recently announced that the statewide average weekly wage is increasing to $1,394. It’s important to understand what that could mean for workers’ compensation claims in progress, new claims about to be filed, and workers currently receiving benefits. In addition, it is also important to understand the new rules about direct deposit of wage benefits.

Understanding Workers’ Compensation Wage Benefits in Pennsylvania

The workers’ compensation program in Pennsylvania pays workers’ benefits if they are unable to work because of an on-the-job injury or occupational illness. To receive full benefits, an employee must be rated as totally disabled. Temporary total disability benefits are calculated based on 2/3 of an employee’s average weekly wage. But the calculation is not as simple as it may sound.

Mistakes can be made when determining what the “average” should be. And then there are caps that apply.

Determining Your Average Weekly Wage

Your average weekly wage should include not just regular gross wages, but also other forms of compensation. This includes bonuses, vacation pay, tips, overtime, and other benefits such as food and lodging paid for by your employer. For many people, wages vary according to workload at different times of the year. To determine a fair average, it is important to look at an entire year rather than the pay at the time of the injury.

Minimums and Maximums

The workers’ compensation program only supplements lost income up to a certain point. If your earnings exceed a threshold amount, your benefits will be less than 2/3 of your average weekly earnings. Starting in 2026, the maximum amount you can receive is $1,394.00 per week.

Those whose average weekly earnings fall between $2,091 and $1,045.51 will receive 2/3 of their average weekly wage amount. Workers with an average weekly wage in the range from $1,045.50 to $774.44 will receive a flat rate of $697 per week, so for those on the lower end of that range, the amount equals more than 2/3 of their average weekly amount. Workers with an average rate below $774.44 receive 90% of their average pay.

Do the Rate Changes Affect Existing Benefits or Just New Cases?

The rate that applies to your benefits is determined by the date of your injury rather than the year that benefits are paid. So, the new rates apply to workers who suffer injuries in 2026. If you were hurt in 2025, then lower rates will apply in your situation, even if you don’t file a claim until 2026. Unlike Social Security retirement benefits, there is no cost-of-living increase for temporary total disability benefits.

Partial Disability Benefits

When a workplace injury limits your ability to work and prevents you from performing your regular job but allows you to work fewer hours or lighter duties, then you can still receive workers’ compensation wage benefits, but they are calculated differently. The benefits are based on the difference between your average weekly wage before you were injured and the amounts you earn working while partially disabled. 

Many workers in this situation would receive benefits equal to 2/3 of the difference between their pre-injury earnings and their post-injury earnings. While these benefits are also subject to caps, there are generally no minimum provisions or adjustments for those in lower income brackets.

How Will Payment Method Requirements Affect Your Wage Benefits?

New laws recently took effect requiring all employers and insurers participating in the workers’ comp program to offer direct deposit as a means of receiving wage benefit payments. They were given more than a year to set up direct deposit systems.

The way the new laws are written indicates that direct deposit is meant to be the default rule for workers’ comp wage benefit payments. Current wording of the law states that “[c]ompensation payable under this article shall be paid by direct deposit to the account of the person entitled to the compensation.” However, the law continues to specify that if a worker receiving benefits requests payment by check and does not have an account with a financial institution that accepts direct deposit, the worker can receive payment by check instead.

While this appears to give employees the option to continue receiving payments by check, the law also states that the insurance company or employer paying workers’ comp benefits can “permit or require” that payments be made by direct deposit. The apparent contradiction in the law could prove problematic for workers without traditional bank accounts. 

Access to traditional bank accounts is limited for some workers due to credit problems. Others lack physical access to banking or do not trust or understand traditional banks. These employees often receive wages via a pay card that works like a debit card. It is unclear whether a direct deposit payment for workers’ compensation benefits could be made to a pay card.

Workers do not have the option to split payments between two accounts or to have some amounts paid by check while others are paid by direct deposit.

A Workers’ Compensation Attorney Could Help Ensure That You Receive Full Benefits

When an employer fails to calculate your average weekly wage properly, you could lose out on significant benefits. Even worse, if you can’t access benefits because your claim is denied, the process of evaluating your claim is delayed, or payment is made in the wrong format, then you can find yourself in a difficult situation very quickly.

An experienced workers’ compensation lawyer at Vanasse Law may be able to assist. For over 30 years, we have dedicated our practice to helping injured workers receive full benefits from the Pennsylvania workers’ compensation program. We understand how to prevent problems and overcome them when they arise. To discuss the assistance we may be able to provide in your situation, contact us online for a free case evaluation. You can also call us at 717-397-1010 (after hours, call or text 717-471-2168).