Workers Compensation
Workers compensation weekly payments are the income support an injured worker receives while capacity is reduced. The amount is not fixed, it shifts with pre-injury earnings, work capacity and how long the claim has run.
What weekly payments are
Weekly payments replace part of a worker's income when a work-related injury reduces their capacity to earn. They are one of the core entitlements in the NSW scheme, alongside medical and treatment expenses. The insurer advises the worker of the amount once the claim is accepted, and payment usually flows through the worker's normal pay cycle, either from the employer or the insurer.
When must payments start?
After an initial notification of injury, the insurer must start provisional weekly payments within 7 calendar days unless it has a reasonable excuse not to. If a reasonable excuse is issued, the insurer must set out the reason and explain how the worker can make a full claim, which is then decided within 21 days. A current certificate of capacity is what demonstrates reduced capacity and keeps payments flowing.
How workers compensation weekly payments are calculated
The amount is based on the worker's pre-injury average weekly earnings (PIAWE) and their current work capacity. Specifically, it takes account of:
- pre-injury average weekly earnings
- whether the worker has current work capacity
- how long the worker has received weekly payments
- whether the worker has returned to work
- the worker's ability to earn in suitable employment
A higher rate applies in the first 13 weeks to support the majority of workers who recover at work. The maximum weekly amount is capped and indexed in April and October each year.
What can stop or reduce payments?
Ongoing entitlement depends on the worker meeting return to work obligations, the insurer's work capacity decisions, and the statutory entitlement periods. Payments can be affected once a worker passes 130 weeks, again at 260 weeks (five years under section 39 of the Workers Compensation Act 1987), whether the worker has high or highest needs, and on reaching retiring age. Workers with more than 20 per cent permanent impairment are not subject to the 260 week limit.
Where injury managers should focus
The recurring pressure points are certificate currency, PIAWE accuracy, and work capacity evidence. Each is easier to defend when the clinical picture on the file is clear, including how medication affects the worker's capacity to perform suitable duties. A sedating or complex medication regimen can quietly cap capacity and hold up a return to work that the payments framework assumes will progress.
Key Takeaways
- Provisional weekly payments must start within 7 days of notification unless a reasonable excuse applies.
- The amount depends on PIAWE, current work capacity, time on the claim and ability to earn in suitable employment.
- A higher rate applies in the first 13 weeks and the maximum is capped and indexed twice a year.
- Entitlement can change at the 130 and 260 week thresholds and on reaching retiring age.
- A current certificate of capacity is required to keep payments flowing.
Frequently Asked Questions
When must the insurer start weekly payments?
After an initial notification of injury, the insurer must start provisional weekly payments within 7 calendar days unless there is a reasonable excuse. If a reasonable excuse is issued, the worker can lodge a claim form and the insurer then has 21 days to accept or dispute liability.
How are weekly payments calculated?
Weekly payments are based on the worker's pre-injury average weekly earnings, their current work capacity, how long they have received payments, and their ability to earn in suitable employment. A higher rate applies in the first 13 weeks and the amount is capped at the indexed maximum.
What can stop or reduce weekly payments?
Payments can change following a work capacity decision, if a current certificate of capacity is not provided, if the worker passes the 130 or 260 week entitlement periods, or on reaching retiring age. Many of these decisions can be reviewed or disputed.
Primary source: State Insurance Regulatory Authority (SIRA), Weekly payments guidance, updated 2025.
