If you’ve suffered a work-related injury or illness, this Workers Compensation Payout Guide for NSW outlines everything you need to know. In NSW, you may be entitled to workers compensation payouts that cover lost wages while you’re unable to work, medical and rehabilitation expenses, and travel costs for attending treatment appointments. Learn how much you can get for workers comp and understand your WorkCover payout options.
Depending on the extent of your injury and its Whole Person Impairment (WPI) rating, you may be eligible for a workers compensation lump sum payment, also known as a lump sum claim. If your injuries meet the required threshold, you could also qualify for a workers compensation settlement, such as a work injury damages claim or a common law claim.
Several factors influence the workers compensation payout you may receive, but our specialised workers compensation lawyers can provide clear legal advice tailored to your situation. We’re here to help you understand your rights, access your entitlements, and regain control of your life. Plus, you won’t be required to pay any legal costs or disbursements for your workers compensation claim.
Is a Workers Comp Payout the Same as a WorkCover Payout in NSW?
The former regulator in NSW was known as WorkCover, but it is now overseen by the State Insurance Regulatory Authority (SIRA). Despite the change, many people still refer to workers compensation as WorkCover. While the name you use isn’t important, what truly matters is understanding the compensation you’re entitled to, the workers compensation claims process, and the next steps to secure your benefits.
What Is a Workers Compensation Payout in NSW?
Workers’ compensation is an insurance payment provided to employees who suffer an injury or illness due to their work. This includes both physical injuries and psychological injuries, such as those caused by workplace bullying or harassment. In NSW, all employees are protected under the Workers’ Compensation Scheme, even if their employer is uninsured. This ensures that injured workers can access the support and compensation they need to recover.
When you make a workers compensation claim, you may be able to get:
Entitlements:
- Weekly payments while you have a reduced capacity to work.
- Hospital, rehabilitation and medical expenses including travel expenses.
- Domestic assistance for help around the home
Lump Sum Payment:
- A permanent impairment payment -
If you are assessed as having at least 11% Whole Person Impairment (WPI) for a physical injury, or 15% or greater WPI for a psychological injury, you may be entitled to a lump sum compensation payment. This lump sum is an additional entitlement, separate from other weekly benefits. How much you get paid for workers comp is dependent on the extent of the injury or condition.
For exempt workers—such as police officers, paramedics, or firefighters—you may still qualify for a lump sum payment even if your physical injuries are assessed at less than 11% WPI.
Our specialised lawyers handle the entire assessment process, including referring you to an Independent Medical Examiner (IME). The IME will assess your injuries and provide a WPI rating, which forms the basis for claiming lump sum compensation. Let us guide you through the process to ensure you receive the compensation you deserve.
Lump Sum Payout:
- Work injury damages payout –
If you are assessed as having at least 15% Whole Person Impairment (WPI) and your injury was caused by your employer’s negligence, you may be eligible for additional compensation. Proving negligence is a critical part of the process, but our experienced lawyers will assist in gathering the necessary evidence to determine whether your employer was at fault. We are here to guide you through every step to help you secure the compensation you are entitled to.
Is Workers Compensation Compulsory in NSW?
In New South Wales (NSW), it is mandatory for all employers to have workers compensation insurance to protect their employees in case of workplace injuries or illnesses. Employers who fail to comply face significant penalties.
If your employer does not have workers compensation insurance, it does not affect your entitlements—you are still covered under the NSW Workers Compensation Scheme. However, it is crucial to notify your employer about your injury and seek assistance from our experienced lawyers to ensure your rights and entitlements are protected.
Am I Eligible for a Workers Comp Payout?
Your eligibility to claim workers compensation depends on factors such as:
- Your employment type: casual employees, permanent, full-time, part-time, or self-employed.
- The nature of your injury: Whether it occurred at work, as a result of work, or during work-related activities.
You can claim workers compensation for both physical and psychological injuries, as long as the injury or illness was sustained at work.
For tailored advice on your eligibility and entitlements, contact our experienced workers compensation lawyers. We’ll guide you through the process and provide support specific to your situation.
Who Pays for Workers Compensation Payouts?
Workers compensation is funded through insurance policies purchased by employers. In NSW, employers are legally required to have a workers compensation insurance policy to cover their employees in case of work-related injuries or illnesses.
The insurance provider pays for the compensation, which can include:
- Lost wages during your recovery.
- Medical and rehabilitation expenses.
- Lump sum payments for permanent impairments.
If an employer does not have workers compensation insurance, the claim can still be processed through the NSW Workers Compensation Scheme, ensuring employees are protected. Employers who fail to insure their workers may face penalties.
How Much Do You Get Paid For Workers Comp?
Your benefits are calculated based on various factors, such as:
- Your age and the age of retirement;
- The severity and complexity of your injury or illness;
- Your whole person impairment assessment;
- Your working conditions, including supervision provided and the level of training you received;
- Your prospects of rehabilitation;
- Whether your injury occurred as a result of your employers’ negligence
However, your weekly payments are as detailed below:
| Duration | Entitlement |
|---|---|
| Up to 13 weeks | Up to 95% pre injury average weekly earnings |
| Week 14-130 | Injured workers who have returned to work for at least 15 hours per week, are entitled to up to 95% of their pre-injury average weekly earnings. Injured workers who have no capacity to work, or are working less than 15 hours per week, may receive up to 80% of their pre-injury weekly earnings |
| Weeks 131-260 | For most, their weekly benefits stop here however, exceptions apply (as below). Injured workers who have no capacity to work can receive up to 80% of pre-injury weekly earnings if: – they’re assessed as likely to be off work indefinitely; or – their permanent impairment is greater than 20% |
| After 261 weeks (5 years) until retirement | Weekly payments are only available to injured workers with permanent impairment greater than 20%, subject to ongoing work capacity assessments |
If your permanent injury is assessed as being greater than 10% for a physical injury, or 15% or greater for a psychological injury, then you may make a claim for lump sum compensation.
How To Claim a Workers Compensation Payout
If you have suffered an injury or illness at work, you can make a workers compensation claim by:
1. Reporting your injury or illness to your employer as soon as possible. If you don’t report your injuries how can we prove it happened?
2. Visiting your doctor and seeking medical treatment. You will also need to obtain a certificate of capacity to be completed by your doctor. Same question as above applies here too!
3. Contacting our team of workers compensation lawyers to seek advice about your eligibility to claim, how much you can claim and when you can expect to receive a response or payments from the insurer.
4. Completing and lodging a Worker’s Compensation Claim form. In addition to your form, you will be required to provide your employer with a Certificate of Capacity completed by your doctor and you before lodging your claim.
There is a 6 month time limit to lodge a workers compensation claim form, for workers so we recommend that you act as soon as possible.
How Long Can You Stay on Workers Compensation?
How long you can stay on workers compensation in NSW depends on your Whole Person Impairment (WPI) assessment:
For Permanent Impairment Above 20% WPI:
- You may be eligible to receive weekly payments until you reach the Commonwealth retirement age plus one year, subject to ongoing capacity assessments.
For Permanent Impairment of 20% WPI or Less:
- Weekly payments are typically limited to 5 years.
Alternative Options for 15% WPI or More:
- If your injury is assessed at 15% WPI or more, you have the option to close your claim by pursuing a work injury damages claim.
Deciding whether to continue receiving workers compensation or explore other options depends on your circumstances. Our experienced lawyers can help you assess your situation and guide you toward the best course of action for your future.
What Is the Maximum Workers Comp Payout in NSW?
The maximum weekly workers compensation payments in NSW are adjusted in April and October each year, so the amount you may receive depends on when you make your claim.
In addition to weekly payments, you could also be entitled to:
- Hospital, rehabilitation, and medical expenses.
- A lump sum payout for permanent impairment.
- Compensation for damages if your injury resulted from your employer’s negligence.
For tailored advice and to understand your full entitlements, contact our experienced workers compensation lawyers on 1800 952 898 to discuss your circumstances.
Can You Get a Pain and Suffering Payout Under Workers Compensation in NSW?
In short, no, unless you are an exempt worker (e.g., police officers, paramedics, or firefighters). Most workers in NSW are not eligible for pain and suffering payouts under workers compensation.
Workers compensation entitlements include:
- Weekly payments for lost wages.
- Medical expenses and rehabilitation costs.
- Lump sum payouts for permanent impairment (11% WPI for physical injuries or 15% WPI for psychological injuries).
- Work injury damages, available if you are assessed at 15% WPI or more and can prove your injury was caused by your employer’s negligence.
To better understand your eligibility and maximise your compensation entitlements, consult with a workers compensation lawyer.
What Is a Work Injury Damages Claim (Common Law Claim)?
A work injury damages claim is a common law claim for workplace injuries where the employee sustains an injury at work as a result of their employer’s negligence.
The workplace injury must meet the threshold of at least 15% and this assessment must either be accepted by the insurer or determined by the Personal Injuries Commission.
To make a successful work injury damages claim you need to establish that:Your employer owed you a duty of care; and
- 1. Your employer failed to exercise that duty of care; and
- 2. Your permanent impairment resulted from your employer’s negligence.
Both physical or psychological injuries are able to make a work injury damages/common law claim if they meet the above.
What Happens If My Workers Compensation Claim Is Denied?
If your claim is denied, the insurer must notify you of the reasons for their denial, in writing and provide information about the next steps available to you.
After receiving the denial, you have the following options to challenge the decision:
- Request an internal review by the insurer.
- Lodge a dispute directly with the Personal Injury Commission (PIC), the central body for resolving all workers compensation disputes in NSW.
- Contact us on 1800 952 901 for advice on challenging the decision and if we disagree with the insurer we will act on your behalf in seeking to challenge the decision and obtaining evidence in support of your claim. Once we have the required evidence we will then put the insurer on notice of our claim and depending on the insurers response, refer your claim for conciliation/arbitration at the Personal Injuries Comission.
How Much Will a Workers Compensation Lawyer Cost Me?
Our workers compensation lawyers will provide you with free legal advice about your claim and if you decide to instruct us, we will apply to the Independent Review Office (IRO) for funding. This means there’s no cost to you!
If you are eligible for lump sum payments, we’ll work on a ‘no win no fee’ basis, so you will only need to pay us when you win.
Issa Rabaya
• Bachelor of Laws
• Graduate Diploma in Legal Practice
• Approved Legal Service Provider to the Independent Review Office
• Member of the Law Society
Issa Rabaya
• Bachelor of Laws
• Graduate Diploma in Legal Practice
• Approved Legal Service Provider to the Independent Review Office
• Member of the Law Society
