Cost of Living Adjustment for 2025

Since Section 9-638 of the Labor and Employment Article became effective on January 1, 1988, covered workers have been provided an annual adjustment for any compensation paid to a covered worker who has sustained a permanent total disability because of an accidental injury or an occupational disease. This provision only applies to claims that occurred on or after January 1, 1988. Every subsequent year since 1988, other than 2011, has seen the annual cost of living adjustment increase, and that trend will not change in 2025.

Beginning on January 1, 2025, the annual cost of living adjustment for compensation paid to covered employees will increase an additional 3.11%. This is down from 2024’s maximum cost of living adjustment increase of 5% (the maximum single year increase). What won’t be changing is that the benefits are still reduced in cases where the injured worker is entitled to Federal Social Security Disability Benefits to a certain extent. All parties involved in a workers’ compensation claim moving forward should be aware of this increase in order to ensure compliance with any Commission Order’s regarding permanent total disability.

Written by Attorney Austin R. Scott.