DoDI 1400.25-V810, April 15, 2005
27 ENCLOSURE 3
(a) Compensation Rates. Generally, in cases of total disability, an employee is
entitled to compensation equivalent to two-thirds of the weekly salary if there are no dependents,
or three-fourths of the salary if there are one or more dependents (see Glossary for definition of
dependents). Compensation is tax free. In establishing a person’s wage rate, the law recognizes
certain additional amounts that may be included in salary, such as premium pay, night and
Sunday differential, holiday pay, hazard pay, dirty work pay, quarters allowances and post
differential for overseas employees. Overtime pay is not included except for administratively
uncontrollable work covered under 5 U.S.C. 5545(c)(2) (Reference (a)). Under Reference (a)
the maximum compensation rate may not exceed more than 75 percent of the monthly pay of the
maximum rate of basic pay for GS-15 (excluding locality pay).
(b) Duration of Compensation. Compensation payments for total disability may
continue as long as the disability continues and suitable modified work is not available; in some
instances, for the lifetime of the employee. As with medical care, there is no total dollar
maximum or time limitation.
(c) Loss of Wage-Earning Capability (LWEC). When an injured person suffers a
wage loss because of disability that is less than total, compensation may be paid for this partial
loss of wages or wage-earning capacity. Provisions of Reference (a) govern the determination of
wage-earning capacity. When a claimant has completed 60 days of employment in a suitably
modified, formally classified position, the agency should complete a LWEC worksheet and
request that a formal LWEC rating be issued. If the position carries a pay rate less than that of
the date of injury, compensation will be payable for a loss of wage earning capacity. Such a
formal rating can be changed only under very limited circumstances.
(d) Schedule Awards. Reference (a) also provides for payment of compensation for
permanent loss or loss of use (either partial or total) of certain internal and external organs;
members or functions of the body such as arms, legs, hands, feet, fingers, toes, eyes; or loss of
hearing or loss of vision. Each extremity or function has been rated for a specific number of
weeks of compensation that can be paid in addition to full salary. If a serious disfigurement of
the head, face, or neck results from a job-related injury, an award may also be made for such
disfigurement, not to exceed $3,500. Multiple schedule awards may be paid concurrently for
different body parts or paid concurrently with the Office of Personnel Management (OPM)
retirement benefits. Employees can receive schedule award payments concurrently while
receiving severance pay for involuntary separation from their employment. Schedule awards can
be paid even if the employee returns to work. However, employees cannot receive wage loss
compensation and schedule award benefits concurrently for the same injury.
(e) Vocational Rehabilitation
. If the injured employee suffers a vocational handicap
due to the injury and cannot resume usual employment, OWCP-directed vocational rehabilitation
may be arranged to assist in training for work that the employee can do. The cost for
rehabilitation is paid from the Employees’ Compensation Fund and charged back to the DoD
Component. Rehabilitation service is supervised by OWCP, but is usually provided in
cooperation with state and private rehabilitation agencies. In addition to the cost of
rehabilitation, an employee may qualify for a monthly allowance of up to $200 necessary for his
or her personal maintenance. Employees are also entitled to collect total disability payments