Upon what basis are workers' compensation benefits typically calculated?

Workers' compensation benefits are typically calculated on a percentage of the injured worker's average weekly salary. This approach is designed to provide workers with compensation that reflects their lost earnings due to a work-related injury or illness. The percentage used can vary by jurisdiction and is generally intended to replace a significant portion of the employee's income while they are unable to work.

Calculating benefits as a percentage of salary ensures that the compensation is proportionate to what the worker was earning before the injury, thus making it fair and equitable. This method accommodates variations in individual circumstances, meaning that higher earners receive more substantial benefits while lower earners receive accordingly less, which maintains integrity in the system.

The other options do not accurately reflect the typical basis for calculating workers' compensation benefits. For example, fixed weekly rates might not take into account an individual’s specific earnings, minimum wage standards would not apply to salaries above that threshold, and market value assessments are not related to personal income or earnings scenarios. These alternatives do not align with the foundational principles of compensatory measures provided in workers' compensation systems.