Up, Up and Away: Annual Increases in Workers' Compensation and Unemployment Compensation
Each year the Pennsylvania Department of Labor and Industry (L&I) is required to recalculate the statewide average weekly wage (SAWW) used for workers' compensation (WC) and unemployment compensation (UC) benefit purposes. The law allows the maximum amount to either increase or decrease depending upon statewide earnings for the preceding fiscal year.
The latest recalculation was released in the January 17, 2009 Pennsylvania Bulletin. The new maximum benefits will apply to WC or UC claims filed on or after January 1, 2009.
The WC Maximum is 100% of the SAWW
Based upon the SAWW, as determined by L&I for the fiscal year ending June 30, 2008, the maximum compensation payable under the Workers' Compensation Act (77 P. S. §§ 25.1 and 25.2) shall be $836 per week for injuries occurring on and after January 1, 2009. Last year's maximum benefit was $1807.
For purposes of calculating the update to payments for medical treatment rendered on and after January 1, 2009, the percentage increase in the Statewide Average Weekly Wage is 3.6%.
The UC Maximum is 66.6% of the SAWW
Each year the maximum weekly benefit rate for UC is calculated at 66 2/3% of the average weekly wage in covered employment for the preceding fiscal year. The maximum weekly benefit rate for unemployment compensation purposes in this Commonwealth during calendar year 2009 will be $558.
Additionally, the actual table of benefits is extended to show the wages necessary to obtain the maximum benefit of $558. Last year's maximum benefit was $539.
BOTTOM LINE: Employers should be aware of the increases in maximum rates for both WC and UC. These increases are likely to impact both WC premiums and UC contributions/taxes.
Skarlatos & Zonarich LLP is a full-service law firm with highly skilled professionals dedicated to providing clients with sound advice and aggressive advocacy. For more information, visit skarlatoszonarich.com.
