If an employee's Permanent Disability is 50%, what percent of the compensation should be paid to the employee?

If an employee's Permanent Disability is 50%, what percent of the compensation should be paid to the employee?

• A. 10% of the Compensation
• B. 50% of the Compensation
• C. 5% of the Compensation
• D. 0% of the Compensation

Answer: (A)

Permanent disability indemnity in California workers’ compensation is paid as a portion of the employee’s compensation rate, not the full disability percentage. The disability rating is converted to a share of the compensation rate by applying a factor of 0.2. So a 50% permanent disability translates to 50% × 0.2 = 10% of the compensation rate. The compensation rate is the weekly amount used to determine benefits (roughly two-thirds of the employee’s average weekly wage, subject to caps). Therefore, the employee would receive 10% of the compensation rate as permanent disability benefits.

Permanent disability indemnity in California workers’ compensation is paid as a portion of the employee’s compensation rate, not the full disability percentage. The disability rating is converted to a share of the compensation rate by applying a factor of 0.2. So a 50% permanent disability translates to 50% × 0.2 = 10% of the compensation rate. The compensation rate is the weekly amount used to determine benefits (roughly two-thirds of the employee’s average weekly wage, subject to caps). Therefore, the employee would receive 10% of the compensation rate as permanent disability benefits.