Are My Wages Capped?

In October 1999, the State Government, made changes to the Workers' Compensation and Injury Management Act 1981 to preclude an injured employee from earning above a capped rate of wages for the duration of their claim for workers' compensation. This rate is indexed annually. For the period 1 July 2008 to 30 June 2009 it is $1904.40 per week.

Below is a table outlining the changes to the Act.

Workers Whose Earnings Are Prescribed By An Industrial Award

Workers Whose Earnings Are Not Prescribed By An Industrial Award

First 13 weeks of claim

Weekly payments will consist of the rate of weekly earnings payable under the relevant industrial award, plus any over award or service payment paid on a regular basis including overtime, bonuses or allowances up to a maximum of $1904.40 (amount current until 30 June 2009). Overtime bonuses or allowances are averaged over the 13 weeks before the disability occurred.

Weekly payments will consist of the worker's average weekly earnings (including overtime, bonuses or allowances) averaged over the year before the disability occurred up to a maximum of $1904.40 (amount current to 30 June 2009).

14th week onwards

Weekly payments will consist of the rate of weekly earnings under the relevant industrial award, plus any over award or service payment made on a regular basis, but excluding overtime, bonuses and allowances. Maximum payment is $1904.40 (amount current until 30 June 2009).

Weekly payments will 'step down' to consist of 85% of the worker's normal weekly earnings. Maximum payment is $1904.40(amount current to 30 June 2009).

Essentially, this means that if you are injured at work and submit a claim for workers' compensation, and you have time off for the injury, whether it be 1 day or 4 weeks, your salary will be capped at $380.88 gross per day or $1904.40 gross per week (inclusive of allowances).

In the event liability cannot be determined without further information any time off work is normally deducted as sick leave until RiskCover can determine liability on the claim. If liability for the claim is accepted, sick leave will be reinstated and replaced with workers' compensation.

Whilst on sick leave the employee's normal weekly rate of pay applies. Once on workers' compensation, the rate of pay will be capped at $1904.40 gross per week (inclusive of allowances). In the event there is a difference between the amount of sick leave paid, and the maximum amount of compensation payable for that period, a debit note will be issued.