Please enter your average weekly wage and impairment rating to estimate.
This estimate is educational only. PPD calculations are state-specific and highly fact-dependent. Impairment ratings, scheduled weeks, and benefit rates all vary significantly by jurisdiction. Consult a workers’ compensation attorney licensed in your state before making any decisions.
Your Impairment Rating Is Just the Starting Point — Not the Ending Number
Most injured workers fixate on the impairment rating percentage assigned by their doctor, thinking that number determines what they'll receive. It doesn't — at least not directly. Permanent partial disability benefits are calculated using a formula that layers the impairment rating over your average weekly wage, the body part involved, your state's benefit rate, and a duration factor that varies widely depending on which method your state uses. Two workers with identical 25% impairment ratings can end up with settlements that differ by tens of thousands of dollars based on those other variables.
This calculator lets you model all three major PPD calculation methods — scheduled awards, wage loss, and whole-person impairment — so you can estimate your benefit range before your workers' comp case reaches a final hearing or settlement negotiation.
How to Use This PPD Settlement Calculator
Workers' compensation is state-specific. The numbers this calculator produces are instructive estimates — not official determinations. But they give you a realistic framework for evaluating what your case is worth and whether a settlement offer is in the right ballpark.
Filling In the Calculator
- Select your state's calculation method. Most states use one of three approaches: scheduled awards (a fixed number of weeks per body part, multiplied by impairment rating), wage loss (based on the difference between pre- and post-injury earning capacity), or whole-person impairment (applying the AMA Guides rating against a total benefit base). Your workers' comp attorney or your state's workers' compensation board website will tell you which method your state uses.
- Enter your average weekly wage (AWW). This is typically your average gross weekly earnings over the 52 weeks before the injury. Some states use a shorter period or a different calculation — your employer's payroll records should reflect the accurate figure.
- For scheduled awards: select the body part and enter your impairment rating. The scheduled weeks shown are national averages — your state may use different numbers. Enter your state's specific weeks if you know them.
- For wage loss: enter your post-injury earning capacity (your current or projected weekly earnings given your impairment) and the applicable benefit duration in weeks.
- The PPD benefit rate is typically 66⅔% of your AWW, but some states use different rates. Enter your state's rate.
- Enter any future medical offset — a Medicare Set-Aside (MSA) allocation or other future medical reserve that reduces your lump-sum settlement value.
- Attorney fees in workers' comp are typically 15–25%, often set by state law. Enter your attorney's fee percentage.
The Three PPD Calculation Methods Explained
Different states use fundamentally different approaches to calculate PPD benefits — and the method matters as much as the rating itself.
Scheduled Awards: Weeks × Rating × Weekly Benefit
Scheduled award states assign a fixed number of benefit weeks to each body part — for example, 300 weeks for a hand or 288 weeks for an arm in some states. Your impairment rating percentage is applied to those weeks to determine your award weeks. A 20% rating on a 300-week scheduled body part yields 60 weeks of benefits. Multiply those 60 weeks by your weekly PPD benefit rate and you have your gross award. The scheduled weeks are set by statute and vary enormously — New York, Florida, and Pennsylvania all use scheduled awards but with different week values.
Example: Hand Injury, 30% Rating, $1,200 AWW, 66⅔% Rate
Using a 288-week scheduled hand (approximate average): 288 × 30% = 86.4 award weeks. Weekly PPD benefit: $1,200 × 66.67% = $800. Gross award: 86.4 × $800 = $69,120. After a 20% attorney fee: net to worker approximately $55,296. A $30,000 initial offer on that claim is not reasonable. Knowing the formula lets you recognize that.
Wage Loss Method: Earning Capacity Difference × Duration
Wage loss states focus on what you actually lost, not just what body part was affected. If you earned $1,100 per week before the injury and can only earn $600 per week now, the wage loss is $500 per week. The benefit is a percentage of that difference, paid for a state-defined duration. According to the Department of Labor's workers' compensation resources, wage loss calculations require documented evidence of post-injury earning capacity — either actual earnings in a modified position or a vocational assessment of what the worker can realistically earn given permanent restrictions.
What Injured Workers Underestimate About PPD Settlements
The calculation is only part of the equation. Several factors surrounding the calculation process significantly affect what you actually receive.
The IME vs. Treating Physician Rating Gap
In workers' comp cases, the employer's insurer often orders an Independent Medical Examination (IME). In practice, IME physicians retained by insurers frequently assign lower impairment ratings than treating physicians. The difference between a 15% and a 30% rating on a scheduled award can be $20,000–$40,000 in benefit value. You have the right to challenge the IME rating — through your treating physician's counter-opinion, through an agreed medical examiner in states that allow it, or through hearing testimony before a workers' comp judge. Do not accept the first IME rating as final. OSHA's worker resources outline your rights when filing and pursuing a workplace injury claim.
Why Lump Sum Settlements Require Careful Medicare Set-Aside Analysis
If you are a Medicare beneficiary or have a reasonable expectation of becoming one within 30 months, your workers' comp lump sum settlement may require a Medicare Set-Aside (MSA) allocation — a portion of the settlement reserved specifically for future medical treatment related to your injury. MSAs protect Medicare from paying for care that should be covered by workers' comp. They also reduce your net settlement proceeds. An MSA that is too high erodes your settlement value; one that is too low creates Medicare compliance risk. A structured settlement professional or workers' comp attorney should review any large lump-sum settlement involving Medicare-eligible workers.
What Injured Workers Ask Before Settling a PPD Claim
What is a permanent partial disability rating?
A PPD rating is a physician's assessment of the percentage of permanent functional impairment you have sustained as a result of your work injury. Ratings are typically expressed as a percentage of a body part (25% loss of use of the hand) or a percentage of whole-person impairment using the AMA Guides to the Evaluation of Permanent Impairment. The rating is then applied to your state's benefit formula to calculate your award.
When is a PPD rating assigned?
A PPD rating is assigned when you reach maximum medical improvement (MMI) — the point at which your condition has stabilized and is not expected to improve further with additional treatment. MMI is determined by your treating physician. Reaching MMI does not mean you're fully recovered; it means your condition has plateaued. At MMI, your treating physician will typically issue a permanent impairment rating.
Can I work while receiving PPD benefits?
Yes, in many states — though the rules vary. Under scheduled award systems, PPD benefits are paid regardless of your post-injury earnings, because the benefit compensates for the impairment itself rather than actual wage loss. Under wage loss systems, returning to work at your pre-injury wage may reduce or eliminate your ongoing PPD benefits. Understanding how your state's method interacts with return-to-work earnings is important before accepting any job offer while a claim is pending.
What is the difference between PPD and total disability?
Permanent partial disability means you've suffered lasting impairment but retain some capacity to work. Permanent total disability (PTD) means the injury renders you permanently unable to perform any gainful employment. PTD benefits are generally calculated differently — often as a lifetime benefit rather than a fixed duration — and the evidentiary threshold is higher. The distinction is significant: a worker on the borderline between PPD and PTD may have a claim worth multiples more if PTD status can be established.
How long does a PPD settlement take?
From the time MMI is reached and a rating is issued, PPD settlements typically resolve in 3–12 months. Contested ratings, disputed AWW calculations, vocational rehabilitation requirements, and Medicare Set-Aside reviews all extend the timeline. Cases that go to hearing before a workers' comp judge take longer than negotiated lump-sum agreements. Having an attorney representing you usually accelerates settlement negotiations with the insurer.
Do I have to accept a lump sum or can I take weekly payments?
Most states give you the option to receive PPD benefits as ongoing weekly payments over the benefit period or as a negotiated lump-sum settlement. Lump-sum settlements close the claim and provide immediate access to the full net amount. Ongoing weekly payments extend over time but keep the case open, which has advantages if your condition worsens. The right structure depends on your financial situation, health trajectory, and Medicare status. Your attorney should model both options before recommending a course of action.
What happens to my PPD claim if my employer goes out of business?
Workers' compensation is insured — your claim is against your employer's workers' comp insurer, not the employer directly. If the employer was uninsured (which is illegal in most states), your state's uninsured employer guarantee fund typically steps in to cover claims. The insurer remains liable even if the employer closes, sells, or files bankruptcy. Your right to PPD benefits does not disappear because your employer ceases to operate.
Can I get both PPD benefits and Social Security Disability?
Yes, but workers' comp PPD benefits can reduce your Social Security Disability Insurance (SSDI) benefits through the workers' comp offset provision. Combined workers' comp and SSDI benefits generally cannot exceed 80% of your average current earnings before disability. The offset is calculated by SSA and reduces the SSDI payment — not the workers' comp benefit. Structuring a workers' comp settlement with SSDI in mind (through allocation language in the settlement agreement) can legally minimize the SSDI offset. This is a technical area where attorney guidance is important.