How to calculate compensation for work-related stress

Updated April 17, 2017

Work-related stress seems inevitable in our changing business environment and workers are now asking for compensation for the mental and physical injuries that stress imposes on them. Every country has its own laws pertaining to worker's compensation for work-related stress and there are certain measurement techniques to arrive at the compensation figure for the physical or mental injury that stress has caused the employee.

Total the medical expenditures you have incurred due to work-related stress. These could include measuring your blood pressure, getting your tests done for cardiac activity, getting treatment for psychiatric problems, etc. This is the base figure and known as special damages.

Calculate the income lost as a result of suffering the stress related to your workplace. If you have missed some hours of work due to not feeling well because of depression or anxiety, or if you were unable to attend events, count the income per hour lost and add the total income lost. This is the non-monetary, general damages.

Multiply the special damages calculated in Step 1 by five and add to the general damages calculated in Step 2. This formula is used to calculate the compensation if the injury is somewhat severe.

Multiply the special damages (base figure) calculated in Step 1 by 10 and add to the general damages (non-monetary losses) calculated in Step 2. This formula is employed to calculate the compensation for work-related stresses in the case of extremely severe injuries due to stress, including lifelong injuries that have impaired the ability of the claimant to continue his current lifestyle or injuries that are extremely incapacitating.

Determine the percentage of the claimant's fault which led to the stress injury. This percentage is anywhere from zero to 100, and represents a numeric value of the verbal assessment of the fault on part of the claimant. For example, maybe the claimant was taking on too much work, which led to the stressful situation.

Reduce the total compensation calculated in Step 3 or Step 4 (as per the circumstances) by the percentage of the claimant's fault determined in Step 5.


The above methodology of calculating the work-related stress compensation should only be used as a guideline, as every region has its set policies and guidelines for the calculation.

Things You'll Need

  • Medical bills
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About the Author

Nida Rasheed has been writing for online businesses since 2008. She specializes in topics such as health, fitness, pet care, travel and home improvement. Rasheed studied social sciences at Lahore University of Management Sciences.