International Labor Organization statistics show that over a million workers get injured every year in their workplace. While most of these workers can go back to work after undergoing treatment, they may not be able to perform as before. Also, they may not find the same job that equals their previous pay, and some may even fail to find work after the injury. Wage loss compensation helps bridge this gap.
A worker will receive wage loss benefits as long as the injuries prevent them from working or receiving the same salary as before. If the patient can recover completely and get the job with the previous salary, they will not be eligible for wage loss compensation.
Wage loss benefits take the following forms.
Temporary Total Disability
It is where an injured worker is entirely unable to perform their duties for a given period. Wage loss benefits will pay a portion of the salary until the worker heals and goes back to regular duties.
Temporary Partial Disability
An injured worker can perform some of their duties, but not all of them. Wage loss benefit pays the difference between what the worker used to earn previously and what they earn while performing their jobs partially until they recover and go back to regular duties.
Permanent Total Disability
The worker incurs permanent disability and is unable to work ultimately. According to the American Medical Association Standards, one must suffer a 50 percent impairment to receive PTD wage loss benefits.
Employers can terminate wage loss benefits if the medical provider releases the patient to go back to a regular job. The employer can also offer temporary modified duties with the same salary as long as the healing process lasts.