Calculating a permanent disability benefit is based upon the amount your disability impairs you from everyday life activities. A doctor will examine you to determine the extent of your disability. He or she will then write a medical report about your condition. The report establishes how disabled you are and what portion of your disability was caused by your work related injury. The doctor's report will finally assign an impairment number to your case.

This impairment number is then entered into a formula that calculates your "percentage of disability." This percentage is a measure of your physical limitations for both work and everyday life activities. The formula then calculates your occupation, your salary, and age at the time of your injury and the future earning capacity that you have lost as a result of your injury. If your doctor has determined that a percentage of your disability was sustained previous to your workplace injury, this percentage is taken out of the calculation.

Once the formula is complete, the end result will be expressed as a percentage and this percentage will be the measure of your disability. This percentage is equal to a specific dollar amount that varies depending upon your state's guidelines. If the variables for the formula have been entered fairly and accurately, the percentage should be an accurate reflection of your impairments.

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