What percentage of base pay does Workman's Compensation provide for a long-term injury?

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Workman's Compensation is designed to provide financial support to employees who suffer from work-related injuries or illnesses. In many jurisdictions, for a long-term injury, it typically replaces a significant portion of the worker's lost wages. The commonly accepted percentage of base pay that Workman's Compensation provides is usually around two-thirds of the employee's pre-injury earnings, which translates to 66 2/3%. This percentage takes into account that the injured employee may have additional expenses and needs while recovering.

This structure is intended to balance the financial assistance needed by the injured employee while ensuring that it does not undermine the overall compensation system. Because Workman's Compensation is designed as a safety net rather than a complete income replacement, the percentage is set lower than the full wage to encourage return to work where possible. Other options listed, such as 50%, 75%, and 100%, do not reflect the typical legal framework or the common percentages established by many state laws regarding Workman's Compensation for long-term injuries.

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