Indiana calculates a permanent partial impairment (PPI) settlement using a statutory chart in Indiana Code 22-3-3-10: each body part is assigned a fixed number of “degrees,” a doctor assigns your impairment percentage, and the two numbers combine to produce compensable degrees that are paid at tiered dollar rates set by the year of injury. For injuries between July 1, 2025 and June 30, 2026, those rates run from $1,913 per degree for the first ten degrees up to $4,436 per degree above fifty. The Indiana workers’ comp settlement chart below shows the degree value for each body part, and the examples that follow show how to run the math.
Degree Values by Body Part
The degrees assigned to each body part are set by statute. They don’t move based on your wages, occupation, or how the accident happened. The whole body sits at the top of the scale at 100 degrees, and individual body parts are rated as a fraction of that.
- Arm above the elbow: 50 degrees
- Leg above the knee: 45 degrees
- Hand below the elbow: 40 degrees
- Foot below the knee: 35 degrees
- Vision in one eye: 35 degrees
- Hearing in both ears: 40 degrees; one ear: 15 degrees
- Thumb: 12 degrees
- Big toe: 12 degrees
- Index finger: 8 degrees
- Middle finger: 7 degrees
- Ring finger: 6 degrees
- Second toe: 6 degrees
- Little finger: 4 degrees
- Both testicles: 30 degrees; one testicle: 10 degrees
- Both hands, both feet, both eyes, or any two such losses in the same accident: 100 degrees
- Whole body (back, neck, head, hip, hernia, internal organs): up to 100 degrees
The whole-body category matters more than it looks. Back injuries, neck injuries, and shoulder injuries involving the socket are rated against 100 degrees rather than the smaller extremity values, which pushes the settlement into higher-paying tiers much faster. Burns and skin impairments are also rated to the whole body because skin is classified as an organ.2Indiana Worker’s Compensation Board. Evaluation and Processing of Permanent Partial Impairment in Indiana Worker’s Compensation Cases
One quirk to know about: when multiple fingers or toes on the same hand or foot are injured but not amputated, the Board pays based on a combined hand or foot rating rather than summing the individual digit values. Amputations are treated differently. They are calculated separately and the dollar value is doubled under the statute.2Indiana Worker’s Compensation Board. Evaluation and Processing of Permanent Partial Impairment in Indiana Worker’s Compensation Cases
Per-Degree Dollar Rates
Degrees don’t pay a flat rate. Indiana uses four tiers, with each block of degrees paying more than the last:
- Degrees 1 through 10
- Degrees 11 through 35
- Degrees 36 through 50
- Degrees 51 through 100
The rates adjust each year on July 1. Two schedules currently apply:
- Injuries between July 1, 2025 and June 30, 2026: $1,913 (degrees 1–10), $2,133 (degrees 11–35), $3,481 (degrees 36–50), $4,436 (degrees 51–100)
- Injuries between July 1, 2026 and June 30, 2027: $1,970 (degrees 1–10), $2,197 (degrees 11–35), $3,585 (degrees 36–50), $4,569 (degrees 51–100)
The date that controls which rate applies is the date of injury, not the settlement date or the Board approval date. An injury from March 2026 uses the 2025–2026 rates even if the case doesn’t settle until the following year.
Running the Math
Three numbers produce a settlement figure: the body part’s degree value, your doctor’s impairment percentage, and the per-degree rates for your injury date. Multiply degrees by percentage to get compensable degrees, then walk those degrees through the tiers.
20 Percent Impairment to the Arm
An arm above the elbow carries 50 degrees. Twenty percent of 50 is 10 compensable degrees, all in the first tier.
10 × $1,913 = $19,130
40 Percent Impairment to the Arm
Forty percent of 50 is 20 compensable degrees. The first 10 pay at tier one, the next 10 at tier two.
- 10 × $1,913 = $19,130
- 10 × $2,133 = $21,330
Total: $40,4603Indiana Worker’s Compensation Board. PPI and Weekly Benefits
15 Percent Whole-Body Impairment for a Back Injury
A back injury is rated against 100 whole-body degrees. Fifteen percent produces 15 compensable degrees.
- 10 × $1,913 = $19,130
- 5 × $2,133 = $10,665
Total: $29,795
A 15 percent back injury pays more than a 20 percent arm injury. That happens because the back is rated against the full 100-degree scale, so degrees climb into higher tiers faster than they would on an extremity. Knowing whether an injury is a scheduled member (arm, leg, hand, foot) or a whole-body rating changes the answer.1Indiana General Assembly. Indiana Code 22-3-3-10 – Compensation for Injuries
Where the Impairment Percentage Comes From
The percentage that drives the calculation comes from a physician, not the Board or the insurer. It cannot be assigned until you reach Maximum Medical Improvement, meaning your condition has stabilized and further treatment isn’t expected to produce meaningful recovery. Getting rated too early is a common way to end up with a percentage that understates the real permanent loss.
The evaluating doctor uses the AMA Guides to the Evaluation of Permanent Impairment. Indiana doesn’t require a specific edition; physicians choose the one they consider most appropriate, and the Board encourages consulting an earlier edition if a newer one would deny a rating entirely.2Indiana Worker’s Compensation Board. Evaluation and Processing of Permanent Partial Impairment in Indiana Worker’s Compensation Cases
The report needs to identify the specific body part or system affected and state the exact impairment percentage. Whether the rating attaches to a scheduled member or to the whole person changes which degree value goes into the calculation, so a vague report creates real problems when the settlement number is being negotiated.
When the Insurer Disputes Your Rating
Insurers often send injured workers to an Independent Medical Examination with a physician of their choosing. IME reports frequently come back with a lower impairment percentage than the treating doctor’s rating, and the insurer uses that lower number to justify a smaller offer.
The IME isn’t the last word. Additional medical evidence can be submitted, a second independent opinion can be requested, and the Worker’s Compensation Board can be asked to resolve the conflict. In some cases the Board appoints a neutral physician for a third evaluation. Testimony from the treating physician, backed by thorough records, can outweigh an IME that reads as incomplete or biased. A lot of settlements are won or lost at this stage.
Attorney Fees
Indiana caps workers’ compensation attorney fees on a sliding scale:
- 20 percent of the first $50,000 recovered
- 15 percent of any recovery above $50,000
- 10 percent of unpaid, out-of-pocket, or future medical expenses
The Board has final authority over fees and can adjust the amount in a given case. If the Board finds the employer acted in bad faith or failed to pursue settlement with reasonable diligence, fees are paid by the employer on top of the award instead of coming out of the worker’s recovery.5Indiana General Assembly. Indiana Code 22-3-4-12 – Rates and Charges; Attorneys Fees
Deadlines That Can Wipe Out the Claim
Two deadlines matter before any settlement math is worth running. Report the injury to your employer within 30 days; waiting longer can result in the claim being denied.6Worker’s Compensation Board of Indiana. Who Is Eligible
The statute of limitations for filing a formal claim with the Board is two years. If no compensation has been paid, the clock starts on the date of injury. If benefits have been paid, the deadline runs two years from the last date of payment. Reopening a closed claim for a change in condition follows the same two-year rule, or one year if the change is an increase in permanent partial impairment.6Worker’s Compensation Board of Indiana. Who Is Eligible
What Actually Reaches Your Bank Account
The chart tells you the gross settlement. Two federal programs can change what you keep. Workers’ compensation itself is not subject to federal income tax under 26 U.S.C. § 104(a)(1), so the settlement doesn’t get taxed on the way out.7Office of the Law Revision Counsel. 26 USC 104 – Compensation for Injuries or Sickness
Social Security Disability is different. If you receive SSDI, the Social Security Administration reduces your monthly payments so the combined total from SSDI and workers’ compensation does not exceed 80 percent of your average earnings before the disability. A lump-sum settlement triggers the offset too; the SSA prorates the lump sum into monthly amounts. Medical and legal expenses tied to the workers’ compensation claim can be excluded from the offset calculation, which is why itemizing those costs in the settlement agreement matters instead of writing a single undifferentiated number.8Social Security Administration. How Workers’ Compensation and Other Disability Payments May Affect Your Benefits9Social Security Administration. Handbook Section 504 – Reduction to Offset Workers’ Compensation
Medicare adds a separate consideration. If you’re already on Medicare or expect to enroll within 30 months of settling, part of the settlement may need to be set aside to pay for future injury-related medical care that Medicare would otherwise cover. CMS recommends submitting a Workers’ Compensation Medicare Set-Aside Arrangement for review when the claimant is on Medicare and the settlement exceeds $25,000, or when Medicare enrollment is expected within 30 months and the anticipated settlement exceeds $250,000. Submission is recommended, not legally required.10Centers for Medicare & Medicaid Services. Workers’ Compensation Medicare Set Aside Arrangements Self-administering the set-aside means tracking every deposit and withdrawal, using the funds only for injury-related treatment Medicare would cover, and filing an annual attestation with CMS. Mishandling the account can lead Medicare to refuse future treatment related to the injury.11Centers for Medicare & Medicaid Services. WCMSA Self-Administration