Printing - FECA-PT2 - National Association of Letter Carriers

2-0900-9 Computing Daily Pay Rate
9. Computing Daily Pay Rate. This paragraph provides guidance on how to compute daily pay rates,
which may be used under the circumstances noted below. However, in practice, payments in disability
claims are almost always based on the weekly rate.
a. Criteria. A daily pay rate may be used only when the following three tests are met:
(1) The injury caused only temporary total disability.
(2) The period of compensable disability (the period for which compensation is paid)
does not, or is not expected to, exceed 90 calendar days and no increments of pay (e.g.,
Sunday pay) are involved.
(3) The "average annual earnings" of the employee are not readily determinable.
b. Length and Permanency of Disability. In deciding whether the injury will likely cause
permanent disability or a period of temporary total disability exceeding 90 calendar days, the CE
must consider the nature and severity of the injury; the medical prognosis; the age of the
employee; and the nature of the employment. When it is unclear whether permanent effects will
result from the injury, or whether the temporary total disability will exceed 90 calendar days, and
the “average annual earnings” cannot be readily determined, the CE should set up payment based
on the daily pay rate and make appropriate inquiries to develop the weekly pay rate.
c. Fixed Schedule. Where the evidence on Form CA-1 or CA-2 shows that the employee is a
regular worker with fixed hours and days of duty, the CE will determine the actual daily wage
according to how it is reported:
(1) If on a daily basis, the amount shown will be used as the actual daily wage;
(2) If on an hourly basis, the actual daily wage will be computed by multiplying the
hourly pay by the hours worked per day shown in item 20 on Form CA-1 or item 21 on Form
CA-2; or
(3) If on a yearly basis, the actual daily wage will be computed by dividing the annual
salary rate by 260 when the regular workweek is five days. For shorter or longer
workweeks, it will be necessary to compute the number of work days per year, and divide
the annual salary by that number.
d. Intermittent Schedule. Where Form CA-1 or CA-2 shows that the employee did not have
fixed hours and days of duty, the CE should determine the actual dates worked during the month
immediately preceding the injury to determine whether the employee worked a reasonably regular
schedule of 5, 5 1/2 or 6 days per week.
(1) If so, the actual daily wage will be computed by dividing the employee's gross
earnings during the month just before the injury by the actual number of days the
employee worked during such period; or
FECA-PT2 Printed: 06/08/2010 477