WorkCover Weekly Payments
Notional earnings I Injury Classification I Current work capacity I No current work capacity
Weekly payments under WorkCover vary.
They depend on:
- Timing;
- When the injury occurred and the claim was made;
- Level of Pre-injury Average Weekly Earnings (PIAWE)
For most workers this means the average weekly earnings during the twelve months before the injury. It is calculated at ordinary time rate of pay, and excludes penalty rates, overtime or allowances. Piece rates, however,should be included.
NOTIONAL EARNINGS
Notional earnings are either:
- Your current earnings; or
- The weekly earnings the WorkCover Authority believes you could be earning in suitable employment, whether it is available or not.
Usually the Victorian WorkCover Authority takes account of the worker's current earnings in determining income. If notional earnings is used to mean anything other than current weekly earnings in your case, contact your union or Union Assist immediately.
It is important to remember that, where notional earnings are applied after 13 weeks, compensation paid is the difference between 60% of pre-injury average weekly earnings (PIAWE) and 60% of notional earnings.
For example, if your pre-injury average weekly earnings were $400, and your notional (current) earnings are $300, your weekly payment would be $240 minus $180.00, leaving a weekly payment from WorkCover of $60 per week. Your gross weekly income would therefore be $360 per week.
Where notional earnings are applied to workers with a 'serious injury', the compensation paid is the difference between 90% of pre-injury average weekly earnings and 90% of notional earnings.
INJURY CLASSIFICATION
The classification of 'serious injury' only applies to injuries before November 12, 1997. A serious injury is one which involves an impairment of 30% or more to the whole body. The assessment must be in accordance with the American Medical Association's Guides to the Evaluation of Permanent Impairment (second edition). No account can be taken of any psychological injury which arises as a consequence of a physical injury. Primary psychological injury can still be considered eg. post traumatic stress.
CURRENT WORK CAPACITY
You are considered to have a current work capacity if you are not able to return to your pre-injury employment but would be able to return to work in suitable employment. What constitutes suitable employment is assessed by looking at the nature of your injury, the job requirements, your age, education and vocational skills and other factors such as where you live.
Such a job does not have to be available.
NO CURRENT WORK CAPACITY
You are considered to have no current work capacity when you are not able to return to work either in pre-injury employment or in suitable employment.
For claims lodged before November 12, 1997, payments are as follows:
Up to 104 weeks, payments will be either at:
- 90% (up to a legislated maximum) if you have a 'serious' injury; or
- 70% (up to a legislated maximum) if you have 'no current work capacity'; or
- 60% (up to a legislated maximum) if you have 'a current work capacity'.
Payments after 104 weeks of weekly payments are:
- 90% if you have a serious injury; or
- 70% if you have no current work capacity and are likely to continue indefinitely to have no current work capacity.
After 104 weeks if you have a current work capacity you will only be paid compensation if you are:
- (i) working at least 15 hours per week; and
- (ii) earning at least $104 per week; and
- (iii) likely to continue indefinitely to be incapable of undertaking other employment which would increase your earnings.
Weekly compensation payments would be calculated at the difference between 60% of PIAWE and 60% of notional earnings.
If you have a current work capacity and no work, you receive no WorkCover weekly payments.
For injuries which occurred and claims that were lodged after November 12, 1997, payments are as follows:
- For the first 13 weeks of payments, they are at 95% of Pre-Injury Average Weekly Earnings (up to a legislated maximum). If you have returned to work on reduced hours this will be reduced by any current weekly earnings.
- Between week 13 and week 104 of payments, they will be either at:
75% (up to a legislated maximum) if you have 'no current work capacity'; or
60% (up to a legislated maximum) if you have a 'current work capacity'.
After 104 weeks in which compensation for lost income is paid, payments are:
75% if you have no current capacity for work and that is likely to continue
indefinitely; or
60% if you have a current work capacity and are:
(i) working at least 15 hours per week; and
(ii) earning at least $104 per week; and
(iii) likely to continue indefinitely to be incapable of undertaking other employment which would increase your earnings.
Weekly compensation payments would be calculated at the difference between 60% of PIAWE and 60% of notional earnings.
If you have a current work capacity and no work, you receive no WorkCover weekly payments.
Problems with weekly payments? Contact your Union or Union Assist.
