Disability Compensation Law and Legal Definition

Disability compensation means payments from public or private funds to a disabled person who cannot work. For instance, worker’s compensation benefits or social security are disability compensation’s. Disability compensation can be classified into permanent disability compensation and temporary disability compensation. Permanent disability compensation is intended to provide the employee with sustenance while s/he rehabilities himself and adjusts to his/her new earning capacity. It is payable for "prospective loss of future earnings." While temporary disability compensation, is measured by a fraction of wages and is intended to partially compensate for loss of wages. It is also termed as disability benefits.