Reduced Earnings

Reduced Earnings Benefits & Reduced Earnings Calculator

a)   Reduced Earnings (RE) Benefits

If you are working, but earning less than your average weekly wage (AWW) due to your workers’ compensation injury, you are entitled to reduced earnings benefits.   You can use our reduced earnings calculator to determine your reduced earnings cash benefits for your work accident.

Reduced earnings benefits are calculated by subtracting your current earnings from your average weekly wage and multiplying the difference by 2/3.  The formula for this is 2/3 x (AWW – reduced earnings).

  • Example: You were earning $900 per week at your job prior to your injury.  You return to work, but due to your injury, your doctor does not want you working any overtime.  Without the overtime, you earn $500 per week.  
    • 2/3 x (900 – $150) = $500
    • In this case, you would keep the $150 from your job, and you would get $500 in Workers’ Compensation benefits, for a total of $650. 

Reduced earnings benefits are subject to the statutory minimums and maximums discussed in the Out-of-Work Benefits webpage.

b)   Reduced Earnings Calculator

You can use the spreadsheet below to calculate your reduced earnings for your workers’ compensation claim.

  • Enter your date of accident (DOA) and average weekly wage (AWW) in the YELLOW-ORANGE cells in the upper right.
  • Enter your earnings in the YELLOW cell.
  • If you are calculating reduced earnings for a single week, there is no need to adjust the dates in GREEN.
  • If you are want to calculate your reduced earnings over a different time period, enter the start and end dates in the GREEN cells.

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