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WorkCover Weekly Payments - Changes from 1 July 2008
Payments under WorkCover are relatively complex. The payments levels are based on Pre Injury Average Weekly Payments (PIAWE). The other factors that have a major impact on payments are how long the worker has been receiving WorkCover weekly payments and the medical capacity of the injured worker.
PIAWE is calculated on earnings before the injury. It is the average earnings for 12 months with the employer. This includes the base rates and the average tally or production payments.
If the worker receives overtime or a shift penalty, regular overtime and penalties are part of the PIAWE for the first 26 weeks of payments. After 26 weeks of weekly payments the PIAWE used no longer includes regular overtime/penalties. After 26 weeks the PIAWE is base rate plus average tally or production payments.
There are additional factors if the worker works part time for a number of employers but that becomes so complicated that you need to check with the AMIEU Organiser. If a worker has only been there for less than 12 months, the period employed is the basis for calculation of the average.
The outline, described here, is for injuries that occurred after 12 November 1997. The weekly payments are on a different system for injuries that occurred before that. All figures given here are gross income (before tax).
In calculating which block of time it needs to be considered that if you are earning a full wage at work (even if you are doing 'light duties') the week doesn't count even thought you are providing certificates, but if you get WorkCover weekly payment for any time (one hour, one day or a whole week) it is counted as a week's payment. A labourer who is injured and is still working full time even though the duties are modified is not receiving WorkCover weekly payments and so the clock is not ticking. However if the labourer was going to physiotherapy for one morning a week and is receiving WorkCover weekly payments for the four hours, each week is being counted.
For the first 13 weeks a worker (who has WorkCover Certificates) is entitled to 95% of PIAWE to a maximum of $1210 per week if not working at all. If the worker (on certificates) is working during the first 13 weeks but is earning less than 95% of PIAWE, the worker is entitled to receive WorkCover to take pay up to 95% (maximum of $1250 weekly). If the worker (on certificates) is earning more than 95% PIAWE each week during the first 13 weeks he or she is entitled to receive full pay. The 13 weeks does not get counted down unless there are WorkCover payments being paid in addition to wages.
After 13 weeks of WorkCover payments there are changes to entitlements. A worker who has No Current Work Capacity is entitled to receive 75% of PIAWE, to a maximum of $1250 per week. Obviously this worker is not able to work to earn any wages.
If the worker has a certificate that specifies a Current Work Capacity (that is he/she is not capable of pre injury employment but is capable of undertaking some form of duties, alternate or modified) payments are based on a formula that relates to 75% of PIAWE.
The employer must provide suitable alternative duties for a worker (with that certificate) for at least a year if it is at all possible. If the worker is capable of returning to original employment the employer must return the worker to the original employment or equivalent employment.
When a worker is at work on alternate duties the worker is paid for the duties being performed. If the wages are as high as PIAWE, or higher, there is no WorkCover weekly payment. If the wages are less than the PIAWE there is an additional WorkCover payment. The formula on which the WorkCover payment is calculated is as follows:
75% of PIAWE is calculated, capped at $1250 per week .
75% of wages being received is calculated.
75% of wages is taken from 75% of PIAWE (or $1250 if capping occurs). The amount from this subtraction is the WorkCover Payment that the worker receives in addition to wages.
If the worker has a certificate that specifies a Current Work Capacity (that is he/she is not capable of pre injury employment but is capable of undertaking some form of duties, alternate or modified) but the employer does not provide any suitable alternative duties, the worker receives 75% of PIAWE. Employers who refuse to meet their obligations to provide suitable duties could face prosecution.
Examples:
A slaughterer's PIAWE was $950 per week. On the return to work on suitable alternative duties the wages are $500 per week. The WorkCover payment is:
75% of $1000=$750
75% of $ 600=$450
WorkCover payment =$300
The amount the slaughterer receives that week is $600 plus $300. That is payment of $900.
A boner's PIAWE was $1450 per week. On the return to work on suitable alternative duties the wages are $800 per week. The WorkCover payment is:
75% of $1450 is $1087.50
75% of $800 =$600
WorkCover payment =$487.50
The amount the boner receives that week is $800 plus $487.50. That is $1287.50.
A labourer's PIAWE was $700 per week. On the return to work on suitable alternate duties the wages are $400 per week. The WorkCover payment is:
75% of $700=$525
75% of $400=$300
WorkCover payment =$225
The amount the labourer receives that week is $400 plus $225. That is $625.
At 26 weeks there can be another pay drop. Workers who before the injury were on an hourly rate with penalty rates for weekend work and/or evening shifts and those who worked regular overtime are affected at 26 weeks. The percentages stay the same but the Pre Injury Average Weekly earnings is adjusted to remove penalties and overtime.
After 104 weeks (or 130 weeks) most weekly payments are stopped It is not impossible for payments to continue after 104 weeks but the person has to have No Capacity has to be for the forseeable future, not just current. If it can be proven that there is no chance of the person being able to return to any duties at all, in the forseeable future, the worker may continue to be paid 75% of PIAWE to the maximum of $1250 a week.
If your claim was lodged after 1 January 2005 the date that most weekly payments are stopped is after 130 weeks not 104 weeks.
The WorkCover weekly payments are indexed each year, 12 months after the injury. The percentage increase is announced by WorkCover on the first of July each year.
Make Up Pay
In addition to WorkCover payments the worker may be entitled to Make Up Pay. That is in accordance with Enterprise Bargaining Agreements or Federal Awards. People who are on Australian Workplace Agreements, AWAs are extremely likely not to get Make Up Pay. It is just one more area that workers on individual agreements are worse off. How long a worker receives Make Up Pay depends on the collective agreement, it is usually 30 weeks or, in some cases, 39 weeks.
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