If you’ve sustained an injury at work and cannot work to your full capacity, it can significantly impact your financial stability. Particularly in the case of a serious injury resulting in a prolonged absence from work. Luckily, workers compensation payments are designed to help cover a number of costs and financial losses, taking into account the worker’s earnings prior to the injury, their capacity to work following the injury, and the amount of time off work required.
How it’s Calculated
Payments of weekly compensation are calculated based on the worker’s pre-injury average earnings that are capped at a maximum rate.
For those who sustained injuries prior to 25 October 2018, some payments and allowances are not included at all in the calculation of PIAWE. For the first 52 weeks in which weekly payments are payable PIAWE includes overtime and shift allowances but these are not included in calculating PIAWE for subsequent periods in which weekly payments are payable.
In respect of injuries suffered between 26 October 2018 and 20 October 2019, PIAWE is calculated including overtime and shift allowances during all periods in which weekly payments are payable.
In respect of injuries suffered from 21 October 2019, PIAWE is calculated including all income payments received by the worker during all periods in which weekly payments are payable.
The legislative provisions are quite complex and should be reviewed in light of your circumstances from time to time.
How the Entitlements are Paid
Once the calculations for the worker’s average weekly earnings pre-injury are made, their entitlements to weekly compensation can be determined. These entitlements are as follows:
- First 13 weeks: 95% of pre-injury average weekly earnings (PIAWE).
- After 13 weeks and up to 130 weeks if working 15 hours per week or less: 80% of PIAWE.
- After 13 weeks and up to 130 weeks if working more than 15 hours per week: 95% of PIAWE.
- After 130 weeks and up to 260 weeks: 80% of PIAWE but specific requirements must be satisfied for payments to continue after 130 weeks.
- After 260 weeks: 80% of PIAWE but payments will only continue if a worker has 21% whole person impairment of more.
Throughout the claim period, these payments may be reduced in circumstances where the worker returned to work or has the capacity to work but has not yet commenced – whether it’s because their current employer doesn’t have available duties, or they’re no longer employed.
In any case, when dealing with any workers compensation matters, it’s so important to seek legal help to ensure you receive all of your entitlements correctly. And given all workers compensation claims are run with a grant of legal assistance from IRO, all legal costs will be covered.
Give our experts a call today, on 1800 600 664 or email us at info@tayscott.com.au, and we’ll help you get the compensation you deserve.
