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Content Last Revised: 2/14/75
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CFR  

Code of Federal Regulations Pertaining to U.S. Department of Labor

Title 20  

Employees' Benefits

 

Chapter I  

Office of Workers' Compensation Programs, Department of Labor

 

 

Part 10  

Claims for Compensation Under the Federal Employees' Compensation Act, As Amended

 

 

 

Subpart E  

Compensation and Related Benefits


20 CFR 10.403 - When and how is compensation for partial disability paid?

  • Section Number: 10.403
  • Section Name: When and how is compensation for partial disability paid?

    (a) 5 U.S.C. 8115 outlines how compensation for partial disability 
is determined. If the employee has actual earnings which fairly and 
reasonably represent his or her wage-earning capacity, those earnings 
may form the basis for payment of compensation for partial disability. 
(See Secs. 10.500 through 10.520 concerning return to work.) If the 
employee's actual earnings do not fairly and reasonably represent his or 
her wage-earning capacity, or if the employee has no actual earnings,
OWCP uses the factors stated in 5 U.S.C. 8115 to select a position which 
represents his or her wage-earning capacity. However, OWCP will not 
secure employment for the employee in the position selected for 
establishing a wage-earning capacity.
    (b) Compensation for partial disability is payable as a percentage 
of the difference between the employee's pay rate for compensation 
purposes and the employee's wage-earning capacity. The percentage is 
66\2/3\ percent of this difference if the employee has no dependents, or 
75 percent of this difference if the employee has at least one 
dependent.
    (c) The formula which OWCP uses to compute the compensation payable 
for partial disability employs the following terms: Pay rate for 
compensation purposes, which is defined in Sec. 10.5(s) of this part; 
current pay rate, which means the salary or wages for the job held at 
the time of injury at the time of the determination; and earnings, which 
means the employee's actual earnings, or the salary or pay rate of the 
position selected by OWCP as representing the employee's wage-earning 
capacity.
    (d) The employee's wage-earning capacity in terms of percentage is 
computed by dividing the employee's earnings by the current pay rate. 
The comparison of earnings and ``current'' pay rate for the job held at 
the time of injury need not be made as of the beginning of partial 
disability. OWCP may use any convenient date for making the comparison 
as long as both wage rates are in effect on the date used for 
comparison.
    (e) The employee's wage-earning capacity in terms of dollars is 
computed by first multiplying the pay rate for compensation purposes by 
the percentage of wage-earning capacity. The resulting dollar amount is 
then subtracted from the pay rate for compensation purposes to obtain 
the employee's loss of wage-earning capacity.
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