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You work in Woolworths/Safeway, Coles Myer or BiLo
Trying to Make Sense of WorkCover Weekly Payments after 1 July 2007
Payments under WorkCover are relatively complex. The AMIEU helps members through the system. Weekly payments are based on Pre Injury Average Weekly Payments (PIAWE). Other factors that have a major impact on payments are how long you have been receiving WorkCover weekly payments, and what it says in your medical certificates.
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 any production payments. If you regularly work overtime or a shift penalty, it is part of PIAWE for the first 26 weeks of payments. After 26 weeks of weekly payments calculation of PIAWE no longer includes regular overtime or penalties. After 26 weeks PIAWE is base rate (plus production payments).
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).
Make Up Pay You are entitled to Make Up Pay in addition to WorkCover payments in accordance with your AMIEU Agreement. Under AMIEU and BiLo, Coles and Safeway EBAs you get 39 weeks of make up pay.
WorkCover for the first 13 weeks If you have WorkCover Certificates you are entitled to 95% of PIAWE (up to a maximum of $1210 per week) if you are not working at all. If you are working during the first 13 weeks but earning less than 95% of PIAWE, you are entitled to receive WorkCover to take pay up to 95% PIAWE (maximum of $1210 weekly). If you are earning more than 95% PIAWE WorkCover payments don't come into it. The 13 weeks does not get counted down unless there are WorkCover payments.
After 13 weeks of WorkCover Payments there are changes to entitlements. If you have 'No Current Capacity' WorkCover payments are 75% of PIAWE to a maximum of $1210 per week. If you have a certificate that specifies a 'Current Work Capacity', that is you are not capable of pre injury employment but can do some form of duties (alternate or modified), payments are based on a formula that relates to 75% of PIAWE.
The employer must offer you suitable alternative duties if it is at all possible, for at least a year. If you are capable of returning to original employment the employer must return you to your original employment or equivalent employment. Employers who do not meet their responsibilities to provide suitable duties could face prosecution.
When you work on alternate duties you are paid for the hours worked. If you work full time there is no WorkCover weekly payment. If you are earning 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 to a maximum of $1210 per week is calculated.
75% of wages being received is calculated.
75% of wages is taken from 75% of PIAWE (or $1210 if that is higher).
The amount from this subtraction is the WorkCover Payment that the worker receives in addition to wages.
If there are no duties provided even though the worker has a 'Current Work Capacity', WorkCover payments are 75% of PIAWE to a maximum of $1210 per week.
At 26 weeks there can be another drop in WorkCover payments. Workers who are on an hourly rate with penalty rates for weekend work and/or evening shifts and those who work regular overtime are affected at 26 weeks. The 26 week drop is still to the same percentage (75% or the 75% formula) but because of the change in the way of calculating PIAWE so that regular overtime or penalty rates are no longer included the amount received can drop.
Examples of payments after first 13 weeks
A butcher's PIAWE(based on base rate that does not include weekend penalties after 26 weeks) was $715 per week. If totally unable to work, WorkCover payment is $536.25. On the return to work on suitable alternative duties the wages are $400 per week. The WorkCover payment is: 75% of $715=$536.25
75% of $400=$300 - WorkCover payment =$236.25
The amount the butcher receives that week is $400 plus $236.25. That is weekly pay of $636.25.
A wrapper's PIAWE was $631 per week. If totally unable to work, WorkCover payment is $473.25. On the return to work on suitable alternate duties the wages are $300 per week.
The WorkCover payment is:75% of $631=$473.25
75% of $300=$225 -
WorkCover payment =$248.25
The amount the wrapper receives that week is $300 plus $248.25. That is $248.25.
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 $1210 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.
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