Temporary Partial Disability (TPD) benefits under the Pennsylvania Workers’ Compensation Act are designed to support employees who are able to return to work after a job-related injury but are not yet earning their pre-injury wages. These benefits help bridge the financial gap during recovery while the employee transitions back into the workplace.
What are Temporary Partial Disability Benefits?
TPD benefits apply when a work-related injury results in a "partial" loss of earning power. Unlike Total Disability, where a worker cannot work at all, TPD is designed for those who return to work in a light-duty capacity or alternative work and:
- Work fewer hours due to medical restrictions.
- Earn less than their Average Weekly Wage.
Common Scenarios That May Qualify for TPD
- Reduced Hours: Doctor clears employee for 20 hours per week instead of the usual 40 hours per week.
- Loss of Overtime: Employee returns to full-time work but are medically restricted from the overtime hours previously worked.
- New Role: Employer cannot accommodate the restrictions in the old job but can accommodate in a different position that is lower-paying.
Requirements for Receiving TPD Benefits
- Medical Evidence: Medical documentation from a healthcare provider documenting physical restrictions for the accepted work-related injury.
- Good Faith: If employer has a reasonable job opening that complies with the employee’s medical restrictions - employer should present the light-duty job offer to the employee.
- Reporting: DVWCT will request the gross wages paid to the employee on a biweekly basis and calculate the potential TPD benefit.
- TPD check: If a TPD check is issued, it’s important to note that the check will be mailed to and payable to the employee, as this represents a loss in the employee’s earnings and the employee is entitled to the TPD payment.
How TPD Benefits Are Calculated
TPD benefits are calculated based on the "gap" between the pre-injury and current earnings.
- The Formula: 66.6% (two-thirds) of the difference between the Average Weekly Wage (AWW) and the current gross earnings.
- Average Weekly Wage (AWW): The gross (pre-tax) average pay before the injury, including overtime and bonuses (calculated based on the preceding years earnings).
- Current Earnings: The gross wages paid during the modified or light-duty role.
Example Calculation:
- Pre-injury AWW: $1,200
- Light-duty earnings: $600
- Difference: $600
- TPD Benefit due to employee: (66.6% of $600 =) $400 per week
It’s important to note that this applies to those working light/modified duty and are earning less than their pre-injury average weekly wage. Temporary Partial Disability benefits do not apply to those that are out of work.
Should you have any questions about loss in wages and/or benefits, please reach out to the DVWCT team.