Indiana Workers' Compensation PPD: How Per‑Diems Are Calculated and Applied

What makes Indiana workers' compensation per‑diem (PPD) different?

In Indiana, the per‑diem (PPD) for workers' compensation is not a fixed statewide amount; it is derived from the claimant's actual average weekly wage (AWW) and the statutory benefit rate of two‑thirds of that wage, divided by seven days. This calculation ties the daily benefit directly to the injured worker's earnings, ensuring proportional wage replacement while allowing adjustments for partial disability or offset earnings.

How the per‑diem is calculated

The formula used by the Indiana Workers' Compensation Board (IWCB) is:

PPD = (AWW × 2/3) ÷ 7

Where:

• AWW – the claimant's average weekly wage, based on the 52 weeks preceding the injury.
• 2/3 – the statutory benefit percentage for total temporary total disability (TTTD).
• ÷ 7 – conversion from weekly to daily rate.

Adjustments that can affect the PPD

Several factors may raise or lower the per‑diem:

• Partial disability: If the worker can perform some duties, the benefit is reduced proportionally.
• Offset earnings: Income from other sources (e.g., unemployment, other insurance) is deducted.
• Maximum and minimum caps: Indiana sets statutory limits that can cap the daily benefit.

When the PPD is paid

Payments begin after a medical certification of disability is issued and continue until the worker reaches maximum medical improvement (MMI), returns to work, or the benefit period ends. For TTTD, the benefit typically lasts up to 104 weeks, but extensions are possible for severe injuries.

Comparison with neighboring states

Key compliance points for employers

Employers should:

• Accurately report the employee's wages to avoid miscalculation.
• Maintain records of the AWW calculation for at least three years.
• Notify the IWCB promptly of any changes in the employee's work status or earnings.

Impact on claimants and claim management

For claimants, the per‑diem directly influences cash flow during recovery, making precise wage documentation crucial. Claim managers often use the PPD figure to forecast claim costs and negotiate settlements, as adjusting the benefit rate can significantly affect total payout.