Maximum Wage Loss Benefit Has Been Raised
The monthly cap on wage loss benefits increased at the beginning of this month. This rule effects Michigan no-fault PIP cases and individuals entitled to wage loss benefits.
As required under Michigan law, specifically Administrative Rule 500.811, the statutory adjustment was applied and the new maximum wage loss payment effective October 1, 2017 through September 30, 2018 is $5,541.00 per single 30-day period.
This means if you are injured in a Michigan motor vehicle accident, such as a car or truck accident, you can receive up to $5,541.00 in wage loss benefits per a 30-day period. Under MCL 500.3107(1)(b), an injured victim disabled from work due to an auto accident is eligible for wage loss benefits for up to 3 years from the date of the accident.
The statute defines work loss benefits as compensation for “loss of income from work an injured person would have performed during the first three years after the date of the accident if he or she had not been injured.”
Under the statute, work loss benefits are payable at the rate of 85 percent of gross pay, including overtime. However, the work loss benefit cannot exceed a monthly maximum, which is adjusted in October of every year to keep pace with the cost of living.
The monthly maximum applicable at the time of the injured victim’s accident is the monthly maximum that continues to apply for the remainder of that person’s three-year benefit period. So if you are injured in a car accident on January 1, 2016, the monthly cap of $5,398.00 applies for remainder of the claim.
This monthly maximum also applies to Survivors’ Benefit claims as well.
Monthly Maximums
Set forth below are the monthly maximum benefit levels that have been in effect since 2001:
October 1, 2001 – September 30, 2002: $4,027.00
October 1, 2002 – September 30, 2003: $4,070.00
October 1, 2003 – September 30, 2004: $4,156.00
October 1, 2004 – September 30, 2005: $4,293.00
October 1, 2005 – September 30, 2006: $4,400.00
October 1, 2006 – September 30, 2007: $4,589.00
October 1, 2007 – September 30, 2008: $4,713.00
October 1, 2008 – September 30, 2009: $4,948.00
October 1, 2009 – September 30, 2010: $4,878.00
October 1, 2010 – September 30, 2011: $4,929.00
October 1, 2011 – September 30, 2012: $5,104.00
October 1, 2012 – September 30, 2013: $5,189.00
October 1, 2013 – September 30, 2014: $5,282.00
October 1, 2014 – September 30, 2015: $5,392.00
October 1, 2015 – September 30, 2016: $5,398.00
October 1, 2016 – September 30, 2017: $5,452.00
October 1, 2017 – September 30, 2018; $5,541.00
