How to Calculate Short Term Disability Benefits

Short term disability benefit is a voluntary optional benefit chosen by an employee by enrolling himself in STD insurance. If you enroll for this insurance, then you will not be at the risk of no income when you encounter accidental injury or sickness, which may keep you off the job for a short period. You will receive a benefit during this period of your inability to do your work or job, and this benefit is known as a short term disability benefit.

Details of STD Benefit

In general, 66.67% of the income is given as short term disability benefit that can be paid either weekly or monthly. But certain employers can even pay 100% of the salary depending on the length of the service of the concerned employee. Thus the percentage of benefit amount is decided by the employer when he contributes for your benefit. I66.67% is the standard followed for insurance in general where the employee contributes for such untoward incidents. An employee can come under this insurance coverage from 1 to 14 days after the injury. This period may vary from state to state. It is calculated based on your income. This benefit can be claimed after the sick leave is exhausted due to the disability. 

Calculation of Short Term Disability 

Short term disability benefit is calculated by multiplying your weekly salary with the percentage of weekly benefit. Once you have the weekly benefit, then the premium amount can also be calculated easily. 

You can understand the method of calculating the short term disability benefit in a better way with the example provided below. 

The formula to calculate the weekly STD benefit is as follows:

Weekly STD Benefit = Annual Salary / Weeks × Weekly Benefit % 

You should calculate the premiums to be paid for the STD insurance. The premium rate is 0.645 cents per $10 for weekly benefits and it is 0.405 cents per $10 for monthly benefits.

Hence if you choose the weekly option, then the premium is calculated as below: 

If you have chosen the monthly premium, then it is calculated in this way.

Talk to a Disability Lawyer

It is advisable to take the advice of a reliable attorney while calculating your short term disability benefit. Most disability attorneys can offer you a free initial consultation where you can find out your legal options for getting your disability benefits as quickly as possible.