What is a cost of living adjustment?

A cost of living adjustment (COLA) is a provision of the Pennsylvania Workers Compensation Law that increases the level of benefits awarded to an injured worker over time. This type of adjustment takes into account the rising standard of living due to inflation. Under this law, the maximum weekly benefit that an employee can receive is adjusted each year on July 1 to keep up with the cost of living. To determine the adjusted benefit levels, the Pennsylvania State Workers Insurance Fund (PA WIF) uses the U.S. Department of Labor’s Consumer Price Index. This index measures changes in the prices of goods and services such as transportation, food, and housing, to determine the level of inflation in the state. Once the COLA is applied, injured workers can receive an increase in their weekly benefits up to the set maximum. This adjustment helps to ensure that workers receive the same buying power that they had before their injury. It also helps to provide them with a steady and reliable income while they are unable to work. The COLA is just one way that the Pennsylvania Workers Compensation Law provides benefits to injured workers. It is important to keep in mind that the amount of benefits provided to injured workers depends on their individual circumstances. Therefore, it is always important to speak to a workers’ compensation attorney familiar with the law in order to ensure that injured workers receive the benefits they are entitled to.

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What is a cost of living adjustment?

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