If you suffer a workplace injury – whether physical or psychological – you may be unable to continue working while you recover. This could leave you without an income for weeks or even months.
For this reason, the New South Wales workers compensation system provides payments to eligible workers injured in the course of their employment. These may be weekly payments or, for more serious injuries, a lump sum payment.
A quick chat with an NSW worker’s compensation lawyer can help clarify how weekly payments work and whether your compensation is likely to match your usual wage.
Provisional weekly payments
To claim workers compensation, you need a certificate of capacity from your doctor, which provides information about your injury or illness, your capacity to work and any treatment you need. The insurer uses this information to determine what you can claim for.
But even before the insurer assesses your workers compensation claim, you may need urgent medical attention, including medication or treatment. To ensure you get help immediately, the insurer will pay ‘provisional payments’ – weekly payments (and medical expenses) – while they assess your claim.
They must start these provisional payments within 7 days of being told about your injury unless they have a good reason not to. They can make provisional payments for up to 12 weeks.
If the insurer does see a good reason not to make these payments, they must provide the ‘reasonable excuse’ within 7 days or determine that they’re not liable.
If the insurer denies your workers compensation claim, you don’t need to pay back the provisional payments you’ve received up to that point.
How weekly workers compensation payments are paid
If the insurer accepts your claim for lost income due to your workplace injury, they will then start paying your weekly payments. Either your employer or the insurer will pay these to you directly in your usual pay cycle.
You may still be able to claim weekly payments if you:
- can’t work at all because of your injury
- can work part-time or in a role that isn’t at the same pay grade as your previous one
- have some capacity for work but your employer can’t offer you work that is suitable for your injury.
Each case is different so you shouldn’t assume that you’re not eligible to claim. Get legal advice to find out everything you’re entitled to.
Once the insurer accepts your claim for weekly payments, they will advise you of your weekly payment amount. In New South Wales, the insurer calculates the payment amount based on:
- your average weekly pay before your injury
- your capacity for work after your injury
- how long you have received provisional weekly payments
- whether you can return to work
- your future capacity to work.
Do weekly payments equal your regular pay?
The insurer calculates your pre-injury average weekly earnings (PIAWE) to establish how much compensation to pay. Average weekly earnings includes ordinary earnings plus overtime and shift allowance.
The amount you can receive is based on either:
- your weekly earnings and any non-monetary benefits you were getting before the injury (e.g. accommodation, education, health insurance, motor vehicle)
- a maximum weekly compensation amount (which is $2,569.60 from 1 April 2025 to 30 September 2025).
The value of any non-monetary benefits you receive in your job is deducted if you still receive them after your injury.
The weekly compensation payment calculation is complex and based on whether you have capacity for suitable work. These are some of the calculations for weekly payments during different time periods after your injury:
Up to 13 weeks:
- If you can’t work at all, you can receive 95% of PIAWE (or the maximum).
- If you have some work capacity, you can receive either 95% of PIAWE minus current earnings or the maximum amount minus earnings (whichever is lower).
Weeks 14 to 130:
- If you can’t work at all, you can receive 80% of PIAWE (or the maximum).
- If you work 15+ hours per week, you can receive either 95% of PIAWE minus earnings or the maximum amount minus earnings.
- If you work less than 15 hours per week, you can receive 80% of PIAWE minus earnings.
- After 130 weeks, you can receive 80% of PIAWE or the maximum amount.
If you’re unsure whether your payments are being calculated correctly during this time, a worker’s compensation lawyer in NSW can help review your entitlements.
Weeks 130 to 260:
If you can’t work at all or work 15+ hours and earn at least $202 per week, you may be eligible for further payments. However, you need to be assessed as having more than 20% permanent impairment. The insurer will conduct a work capacity assessment to work out the extent of your impairment.
After 260 weeks:
Weekly payments cease after 5 years unless you’re assessed as having 21% or more permanent impairment. If you’re eligible, you can receive weekly payments until retirement age.
Higher permanent impairment:
If you have more than 30% permanent impairment, you may be entitled to at least $1,020 per week.
Post-surgery payments:
If you need surgery for a work injury, you may receive weekly payments for 13 weeks after the surgery while you recover. If any part of the process becomes unclear, speaking with a worker’s compensation lawyer in NSW can make it easier to understand what you’re owed and how to move forward.
How retirement affects weekly payments
If you are close to retirement age and sustain a workplace injury or illness, you may receive weekly payments for up 12 months after you reach retirement age.
If you sustain a workplace injury or illness on or after retirement age, you may receive up to 12 months of weekly payments from the date of your injury.
Lump sum payments
If your workplace injury or condition is so severe that you’re unlikely to completely recover, you may be able to claim a permanent impairment lump sum.
You need to be assessed as having at least 11% permanent impairment to be eligible for a lump sum compensation in addition to weekly payments and related expenses.
Lump sum payments are not taxable.
How can Main Lawyers help?
A workplace injury can leave you without a regular income for weeks, months or even longer while you recover. So you need to know that you and your family are financially protected if you’re unable to work or your work hours are reduced.
At Main Lawyers, you’ll have access to an experienced worker’s compensation lawyer in NSW who understands the system and knows how to maximise your entitlements. We’ve helped many New South Wales clients navigate their claims and secure the payments they deserve.
Contact us today for a free, no-obligation discussion to see how we can help you.
