In New South Wales, strict Whole Person Impairment (WPI) thresholds determine an injured worker’s entitlements under the NSW workers compensation scheme. These thresholds impact the amount of lump sum compensation an injured worker can claim and whether they qualify for ongoing benefits.
Speaking with an experienced workers compensation lawyer can help injured workers understand their entitlements and maximize their claims.
Permanent Impairment & Lump Sum Compensation
- Physical injuries – A worker must have a WPI exceeding 10% (i.e., 11% or greater) to claim lump sum compensation.
- Psychological injuries – A worker must have a WPI of 15% or more to qualify for lump sum benefits.
The compensation payout depends on the degree of impairment, and payment amounts increase annually.
| WPI% | FY 2018 | FY 2020 | FY 2022 | FY 2024 |
|---|---|---|---|---|
| 1% – 10% | Nil | Nil | Nil | Nil |
| 11% | $23,790 | $24,580 | $25,900 | $28,840 |
| 15% | $36,230 | $37,420 | $39,420 | $43,920 |
| 20% | $51,780 | $53,470 | $56,320 | $62,770 |
| 30% | $82,880 | $85,570 | $90,120 | $100,470 |
Exempt Workers & Lump Sum Compensation
Certain occupations, such as police officers, firefighters, and paramedics, are considered Exempt Workers under the NSW Workers Compensation Act.
Exempt Workers are eligible for lump sum compensation for any physical injury, regardless of WPI%. However, the 15% WPI threshold for psychological injuries still applies.
Workers with High & Highest Needs
- Workers with High Needs – A worker with a WPI between 21% and 30% is entitled to ongoing statutory benefits (weekly wages, medical, and rehabilitation expenses) beyond the standard claim period, subject to eligibility.
- Workers with the Highest Needs – A worker with a WPI of 31% or greater is entitled to extended compensation benefits, including weekly payments and medical expenses.
A workers compensation lawyer can assist injured workers in understanding their eligibility for ongoing benefits and navigating the claims process to ensure they receive the full compensation they deserve.
Modified Common Law Damages
Under the NSW workers compensation scheme, workers who suffer serious workplace injuries due to employer negligence may pursue Work Injury Damages (WID) claims.
- Work Injury Damages – A worker must have a WPI of at least 15% to seek common law damages.
- A WID claim provides a lump sum payout for past and future economic loss caused by a work-related injury.
- Important: Settling a Work Injury Damages claim means the worker forfeits all future workers compensation benefits, regardless of their WPI percentage.
A workers compensation lawyer can help injured workers determine whether they meet the WPI threshold for a Work Injury Damages claim and negotiate the best possible settlement.
Seek Legal Advice from a Workers Compensation Lawyer
Understanding WPI thresholds is crucial in maximizing your entitlements under NSW workers compensation. Whether you’re seeking a lump sum payout, ongoing weekly benefits, or a Work Injury Damages claim, professional legal guidance ensures you make the best decision.
Call us today at 1800 314 761 to speak with an experienced workers compensation lawyer and ensure you receive the maximum compensation you’re entitled to.