Weekly Payments of Compensation for incapacity – NSW

Payments when working

The maximum weekly compensation amount is capped and is indexed in April and October. The maximum amount from 1 April 2016 to 30 September 2016 is $2042.80 per week.

Payments for the first 13 weeks

For the first 13 weeks, your weekly payments are based on the lesser of:

  • 95 per cent of your pre-injury average weekly earnings minus your current weekly earnings or the amount that you have been assessed as able to earn in suitable employment and the value of any deductible amount, or
  • the maximum weekly compensation amount minus any current weekly earnings and the value of any deductible amount.

Payments for 14 to 130 weeks

From 14 to 130 weeks where you continue to have current work capacity and are working 15 hours or more per week, your weekly payments are based on the lesser of:

  • 95 per cent of your pre-injury average weekly earnings minus your current weekly earnings or the amount that you have been assessed as able to earn in suitable employment and the value of any deductible amount, or
  • the maximum weekly compensation amount minus any current weekly earnings and the value of any deductible amount

If you are working less than 15 hours per week, your weekly payments are based on the lesser of:

  • 80 per cent of your pre-injury average weekly earnings minus your current weekly earnings or the amount that you have been assessed as able to earn in suitable employment and the value of any deductible amount, or
  • the maximum weekly compensation amount minus any current weekly earnings and the value of any deductible amount

Payments for 131 to 260 weeks

There is no entitlement to weekly payments after receiving weekly payments for 130 weeks unless:

  • the worker has completed an application for continued weekly payments after 130 weeks form and sent it to the insurer
  • the worker is working 15 hours or more per week and earning at least $176 per week (indexed annually) and has been assessed by the insurer as being, and as likely to continue indefinitely to be, incapable of undertaking further additional employment or work that would increase their earnings

Between 131 to 260 weeks, weekly payments are based on the lesser of:

  • 80 per cent of your pre-injury average weekly earnings minus your current weekly earnings or the amount that you have been assessed as able to earn in suitable employment and the value of any deductible amount, or
  • the maximum weekly compensation amount minus any current weekly earnings and the value of any deductible amount

If you have capacity to work but are not working 15 hours or more and earning at least $176 per week (indexed annually) you will cease to receive weekly payments.

After 260 weeks (five years) of weekly payments

Generally, weekly payments will cease after five years unless your level of impairment is greater than 20 per cent and:

  • you have no work capacity which is likely to continue indefinitely, or
  • are working 15 hours or more and earning at least $176 per week (indexed annually), and have been assessed as indefinitely incapable of undertaking further employment to increase their earnings

After 260 weeks, weekly payments are calculated based on the lesser of:

  • 80 per cent of your pre-injury average weekly earnings minus your current weekly earnings or the amount that you have been assessed as able to earn in suitable employment and the value of any deductible amount, or
  • the maximum weekly compensation amount minus any current weekly earnings and the value of any deductible amount.

For all workers, weekly payments generally cease when they reach the Commonwealth retirement age.

Payments when not able to work

Payments for the first 13 weeks

For the first 13 weeks where you have no current work capacity, your weekly payment is based on whichever is less:

  • 95 per cent of your pre injury average weekly earnings minus the value of any deductible amount, or
  • the maximum weekly compensation amount (see note below) minus the value of any deductible amount

Payments for 14 to 130 weeks

From 14 to 130 weeks of weekly payments, where you continue to have no current work capacity, your weekly payment is based on whichever is less:

  • 80 per cent of your pre injury average weekly earnings minus the value of any deductible amount, or
  • the maximum weekly compensation amount (see note below) minus the value of any deductible amount

Note: Pre-injury average weekly earnings are calculated by the insurer based on information provided by you or your employer and reflect how much you were earning prior to your injury. During the first 52 weeks of weekly payments, the calculation of pre-injury average weekly earnings includes ordinary earnings plus overtime and shift allowance payments. After 52 weeks of receiving weekly payments the calculation of pre-injury average weekly earnings will not include overtime and shift allowance payments.

Payments for 131 to 260 weeks

Between 131 to 260 weeks, your weekly payments will cease unless you are assessed as having no current work capacity, and this is likely to continue indefinitely. If this is the case, your weekly payment is based on whichever is less:

  • 80 per cent of your pre injury average weekly earnings minus the value of any deductible amount, or
  • The maximum weekly compensation amount (see note below) minus the value of any deductible amount

After 260 weeks (five years) of weekly payments

Weekly payments will cease after five years unless your level of impairment is greater than 20 per cent and you have been assessed by your insurer as having no work capacity which is likely to continue indefinitely,

For all workers, weekly benefits generally cease when they reach Commonwealth retiring age.

Payments when work is not available

Payments for the first 13 weeks

For the first 13 weeks where you have current work capacity, your weekly payments are calculated based on whichever is less:

  • 95 per cent of your pre injury average weekly earnings minus the amount that you have been assessed as able to earn in suitable employment and the value of any deductible amount, or
  • the maximum weekly compensation amount (see note below) minus the amount that you have been assessed as able to earn in suitable employment and the value of any deductible amount

Payments for 14 to 130 weeks

Between 14 to 130 weeks, where you continue to have current work capacity and are not working because suitable employment is not available, your weekly payments are calculated based on whichever is less:

  • 80 per cent of your pre injury average weekly earnings minus the amount that you have been assessed as able to earn in suitable employment and the value of any deductible amount, or
  • the maximum weekly compensation amount (see note below) minus the amount that you have been assessed as able to earn in suitable employment and the value of any deductible amount

Payments for 131 to 260 weeks

If you have some capacity to work you are only entitled to weekly benefits if you work at least 15 hours a week and earn at least $176 per week (indexed annually).

Between 121 to 260 weeks, payments are based on whichever is less:

  • 80 per cent of your pre injury average weekly earnings minus the value of any deductible amount, or
  • the maximum weekly compensation amount (see note below) minus the amount that you have been assessed as able to earn in suitable employment and the value of any deductible amount

After 260 weeks (five years) of weekly payments

Weekly payments will cease after five years unless your level of impairment is greater than 20 per cent and:

  • you have no work capacity to work which is likely to continue indefinitely, or
  • are working 15 hours or more and earning at least $176 per week (indexed annually), and have been assessed by the insurer as being, and likely to continue to indefinitely be incapable of undertaking further employment or additional work to increase your earnings

For all workers, weekly benefits generally cease when they reach Commonwealth retiring age.