Last updated: July 7, 2026 · Data reviewed quarterly
Permanent Partial Disability is where most of the settlement money in serious claims actually comes from — and it is calculated from a formula, not a negotiation vibe. Understand the three inputs and you can check the insurer’s math yourself.
The formula, step by step
1) Impairment rating. At MMI, a doctor assigns a percentage of lost function to the injured body part (or whole person), usually under the AMA Guides. 2) Scheduled weeks. Your state assigns each body part a number of weeks — an arm might be worth 220-300 weeks depending on the state. 3) Weekly rate. Typically two-thirds of your average weekly wage, capped by a state maximum.
Rating % × scheduled weeks × weekly rate = PPD award. Example: 10% arm rating × 220 weeks × $600/week = 22 weeks × $600 = $13,200. A 25% rating on the same facts: $33,000. This is why the rating fight matters more than any other negotiation.
Why identical injuries pay differently by state
States assign different weeks to the same body part, different wage caps, and some rate “whole person” instead of scheduled members. That is how the same 10% shoulder rating pays $9,000 in one state and $28,000 next door. Your state’s schedule is public — find your board below and search “PPD schedule.”
The rating fight
Insurer doctors rate low; that is not cynicism, it is pattern data. Your rights: request a copy of the rating report, ask your treating physician for a rating, and in most states obtain an independent medical examination when ratings conflict. A 5-point rating swing is often worth more than every other negotiation item combined — benchmark against average settlements and see shoulder / back examples.
Free official help & resources
- Your state’s PPD schedule & max rates: via dol.gov/agencies/owcp
- Disputed rating? Ask your board about an Independent Medical Examination (IME)
- SSDI coordination: SSA offset publication (PDF)
- Free legal aid: LSC.gov
FAQ
Lump sum or weekly PPD payments?
Many states allow either. Lump sums help with debts now; weekly preserves budget discipline and sometimes keeps other rights open. Check whether a lump sum closes future medical before signing.
Can I work while receiving PPD?
Generally yes — PPD compensates permanent loss of function, not current unemployment.
My rating feels low. What now?
Get the report, compare it to your restrictions, and pursue the IME route — the process exists precisely because ratings get disputed.
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This article is for informational purposes only and is not legal advice. Settlement values vary significantly by case and by state. Consult a licensed attorney in your state before making decisions about your claim.