WorkCover Payout Examples – Case Studies.
If you’ve been injured at work, looking at WorkCover payout examples can be a good way to understand the claim process and what you might be entitled to. The five examples in this article provide […]
Workers Compensation Claims NSW: Your Complete Guide.
If you’ve been injured at work or become ill because of your job in NSW, you can claim workers compensation (sometimes called WorkCover) to cover your lost wages, medical expenses, and in some cases, lump sum compensation. All NSW workers—including full-time, part-time, and casual employees—are covered by workers compensation.
However, simply submitting a workers compensation claim doesn’t guarantee you’ll automatically receive your full entitlements.
This article is a complete guide to workers compensation claims in NSW, to help you claim everything you’re entitled to.
We understand how overwhelming it can feel when you’re dealing with a work injury. You might be worried about bills, unsure what you can claim, or concerned about what your employer might think. At Law Partners, we have the largest specialist workers compensation team in NSW, here to help you and make sure you receive your full entitlements.
Quick Links
- Workers compensation in NSW – what you can claim
- Understanding workplace injuries and workers compensation
- How to claim
- Your rights and entitlements under workers compensation
Workers compensation claims: what you need to know.
Most clients come to us in one of the following five situations:
I've just been injured at work.
If you just want to know how to submit your claim, you can jump straight to this section of the article.
My claim has been denied.
We’ve overturned thousands of claim denials for our clients. Click here to go straight to the section on disputing denied claims.
I'm not sure if I can claim.
We’ve included a simple summary in the next section of this article to help you understand if you can claim workers compensation. Or you can call us on 13 15 15 and we’ll tell you over the phone.
I want to know how much I can claim.
This article includes a detailed section covering how much you can claim, which may include lump sum payments.
My payments have stopped.
If your workers compensation payments have stopped but you believe that’s unfair to you, call 13 15 15 and we’ll put you through to a workers compensation lawyer to explain your options. It’s a free service.
What is a workers compensation claim?
A workers compensation claim is a claim for financial compensation to cover your losses such as lost wages, medical expenses and rehabilitation if you suffer an injury at work or get sick because of your work.
You may be able to claim workers compensation if:
- You’re injured while performing your work duties
- You develop an illness or disease caused by your work
- You have been injured due to the nature and conditions of your employment over a period of time
- You’re a full-time, part-time or casual employee
- You’re injured during a work break or at a work event
- You’re travelling for work purposes (not your regular commute)
- You suffer a psychological injury related to your employment
Is WorkCover the same as workers compensation?
WorkCover is the old name for the New South Wales workers compensation scheme, but it’s a term that’s still frequently used. So, WorkCover and workers compensation refer to the same scheme.
Who can claim workers compensation?
All injured workers can claim workers compensation, including full time, part-time and casual workers. Sub-contractors can still claim workers compensation, but you’ll need to establish that you were working under the care and control of a “deemed employer”. If you’re a sole trader with an ABN number, then you might need to claim under your own workers compensation insurance policy if you have one.
| Full-time employees – Fully covered under workers compensation |
| Part-time employees – Fully covered under workers compensation |
| Casual employees – Fully covered under workers compensation |
| Sub-contractors – Covered, but must establish working under the care and control of a “deemed employer” |
| Sole traders with ABN – Not covered; need to claim under your own workers compensation insurance policy if you have one |
If you’re not sure how to identify your deemed employer, one of our specialist workers compensation lawyers will be able to help you.
What can you claim on workers compensation?
When you’re injured at work in NSW, there are four main types of compensation you may be entitled to claim. Each serves a different purpose and has different eligibility requirements.
Workers Compensation Weekly Payments
- Covers: Lost wages while you’re unable to work
- Eligibility: Any work-related injury or illness where employment is the main contributing factor
- Typical Amount: Up to 95% of pre-injury earnings (subject to maximum weekly amount)
Treatment Expenses
- Covers: Reimbursement of your medical treatment expenses
- Eligibility: Any work-related injury or illness where employment is the main contributing factor
- Typical amount: All reasonably necessary expenses
Permanent Impairment Lump Sum
- Covers: Compensation for the permanent impact of your injury on your life and ability to work
- Eligibility: Whole Person Impairment (WPI) of at least 11% for a physical injury or 15% for a primary psychological injury
- Typical amount: Between $22,840 and $757,0760, depending on your level of impairment
Work Injury Damages Lump Sum (Common Law Claim)
- Covers: Lump sum compensation for pain and suffering, past and future loss of earnings, medical expenses, and care needs
- Eligibility: WPI of at least 15% AND your employer was negligent
- Typical Amount: Often hundreds of thousands of dollars – depends on severity of injury, age, earning capacity and level of negligence
It’s important to understand that you may be entitled to claim more than one type of compensation. For example, you might receive weekly payments while recovering, then later claim a permanent impairment lump sum once your injury has stabilised. If your employer was negligent and your impairment is severe enough, you may also be able to pursue a work injury damages claim on top of your other entitlements.
Because the rules around these different types of compensation can be complex, it’s worth speaking to one of our specialist workers compensation lawyers who can assess your situation and help you claim everything you’re entitled to.
How are workers compensation payments calculated in NSW?
Payments are calculated based on the extent of your injuries, the expenses you’ve incurred and the amount of time you need off work because of your injuries.
If your work injury results in loss of earnings, here’s a summary of how your weekly payments are calculated:
| Period | Payment Rate | Conditions |
| Provisional payments (Up to 12 weeks) | Weekly payments and medical expenses up to $7,500 | While your claim is being assessed by the insurer. This period gives the insurer more time to make a decision on liability. |
| First entitlement period (Weeks 0-13) | Up to 95% of your pre-injury average weekly earnings, or the maximum weekly compensation amount – whichever is less | No work capacity requirements during this period |
| Second entitlement period (Weeks 14-130) | If working 15+ hours/week: 95% of pre-injury earnings less current earnings If working less than 15 hours/week: 80% of pre-injury earnings less current earnings | Your weekly entitlements depend on your capacity to return to work |
| After 130 weeks | Continued payments may be available | You may continue to receive payments – see below* |
*After 13 weeks you can continue to receive payments if:
- You’ve been assessed as having no current work capacity, likely to continue indefinitely, OR
- You’re working at least 15 hours per week (likely to continue indefinitely) AND you applied for continued weekly payments and this has been approved by the insurer
What is the average workers compensation payout in NSW?
$61,158 was paid out for every new claim submitted* in the 12 months to November 2025. This is according to SIRA Open Data, which shows that 114,457 workers compensation claims were submitted in NSW, and $7 billion was paid out in benefits and lump sums.
How much can you claim in work injury damages?
In our experience, the average payout for a work injury damages claim is in excess of $200,000.
Work injury damages settlements are often in the hundreds of thousands of dollars. If you’re considering making a claim for damages, you should speak to a specialist workers compensation lawyer and get professional advice.
Get FREE claim advice today.
A specialist lawyer will review your circumstances and tell you how much you can claim.
Understanding workplace injuries and workers compensation.
What constitutes a workplace injury?
A workplace injury is any injury that happens while you’re working, where your employment is the main contributing factor. Workplace injuries can also happen while you’re on a break from work, at a work party, travelling for work or visiting other workplaces in the course of doing your job.
What is the most common type of workplace injury?
The most common workplace injuries are musculoskeletal injuries such as joint, ligament and tendon injuries, wounds and lacerations, fractures, burns and spinal injuries. However psychological injuries such as stress and PTSD can also occur in the workplace.
Although jobs involving lifting and physical activity are more likely to cause workplace injuries, office workers are also at risk and may be able to claim workers compensation for injuries relating to repetitive strain or poor ergonomic design of workstations, as well as slip, trip and fall injuries.
What is Whole Person Impairment (WPI)?
Whole Person Impairment (WPI) is a medical assessment that measures the permanent impact of your injury on your overall function and quality of life. It’s expressed as a percentage, with higher percentages indicating more severe permanent impairment. An accredited medical specialist conducts this assessment using standardised guidelines to determine your level of permanent impairment.
Can I claim workers compensation stress leave?
You can claim workers compensation if you’re diagnosed as having a psychological injury caused by your job. Insurers often deny psychological injury claims on the basis that the psychological injury occurred as a result of reasonable actions by management. However, a specialist workers compensation lawyer can look into the circumstances of your injury more deeply, often finding that management’s actions were in fact unreasonable, and liability is then accepted by the insurer.
For more information, read our detailed guide to claiming compensation for stress-related illnesses.
If you’ve had a workers compensation claim denied for a stress-related illness, your best option is to speak to a specialist workers compensation lawyer and get legal advice on your options.
Call 02 9264 4474 or chat to us now for free advice
Chat nowFind out how much you can claim.
Get startedHow to claim workers compensation in NSW
Here’s a step-by-step guide on what to do following a workplace injury.
Step 1: Seek medical attention immediately
Your health and safety come first. If you’ve been injured at work, get medical help straight away – even if the injury seems minor. Some injuries can worsen over time, and early treatment can prevent complications. Your doctor will assess your injuries and provide the medical documentation you’ll need for your claim.
Step 2: Report the injury to your employer
You must notify your employer that you’ve sustained a work-related injury as soon as possible. This can be done verbally or in writing, but we recommend putting it in writing (such as an email) so you have a record. Include details about when, where, and how the injury occurred. Your employer is legally required to notify their workers compensation insurer within 48 hours of being told about your injury.
Step 3: Obtain a certificate of capacity from your doctor
You’ll need a certificate of capacity from a doctor – this is a medical assessment of your injuries that states your capacity to work. This certificate is essential for your workers compensation claim. It outlines whether you can return to work, need modified duties, or require time off to recover.
Step 4: Document everything
Keep detailed records of everything related to your injury. This includes medical reports, certificates, receipts for any expenses, photos of your injuries or the accident scene if possible, and copies of all correspondence with your employer and the insurer. Write down what happened while it’s fresh in your mind, including the date, time, location, what you were doing, and any witnesses. Good documentation can make a significant difference to your claim.
Step 5: Lodge your claim
Once you’ve told your employer, they must notify their workers compensation insurer within 48 hours. You can also notify the insurer directly if you wish. The insurer will contact you to arrange an assessment of your injuries and then notify you whether they’re accepting liability for your claim. A claim for workers compensation should be made within six months of the date of the injury, however there are some situations where this time limit can be exceeded. If you’re unsure about whether you can claim, you should seek free advice from a specialist personal injury lawyer.
Important: Your employer cannot force you to take paid or unpaid leave instead of lodging a workers compensation claim. If this happens, contact us immediately on 13 15 15.
How long do you have to submit a workers compensation / WorkCover claim?
Workers compensation claims in NSW should be made within six months of the accident or injury. However, there are exceptions where you can exceed this time limit. For example:
- A claim can be made up to three years after the accident in some situations (eg if you’ve been travelling or you make an honest mistake)
- If a claim relates to an injury resulting in death or serious and permanent impairment, the claim may still be made after three years, if there’s a reasonable cause for the delay
- If a period greater than three years has passed since the accident then a claim may still be made with SIRA approval
There are also special arrangements if you become aware of an injury a long time after the accident. In these cases, the time limit for workers compensation claims starts from the time you become aware of your injury and the reasons for it.
How long do WorkCover claims take?
After your claim is submitted by your employer, the insurer has 14 days to notify you whether:
- Your claim is accepted
- There’s not enough information to make a decision and they need more time
- Your claim is denied
If your claim is accepted, you should start receiving payments straight away.
Do I get full pay if injured at work?
If your claim for workers compensation is accepted by the insurer, you may be eligible for weekly payments up to a maximum of 95% of your average pre-accident weekly earnings. The amount you receive will be reduced depending on your work capacity (ie) the higher your work capacity, the lower the amount you’ll receive.
Please refer to our workers compensation payout guide for more details.
Can I sue for work injury?
If your work injury is the result of negligence on the part of your employer, and you have been assessed as having a whole person impairment (WPI) of at least 15%, you can sue your employer for damages to cover loss of past wages and loss of future earning capacity. This is a common law damages claim, and under the workers compensation system it’s known as a work injury damages claim. If you’re considering suing for a work injury, you should start by getting advice from a specialist personal injury lawyer.
What happens when workers compensation is denied?
Short answer: If your workers compensation claim is denied, you have the right to dispute the decision through an internal review, by lodging a dispute with the Personal Injury Commission (PIC), or by getting help from a specialist lawyer.
Detailed explanation: If your workers compensation claim is denied, the insurer must notify you in writing of their reasons for the denial and provide information on the next steps available to you.
Here are some examples of common disputes:
- The insurer doesn’t consider the person making the claim to be a ‘worker’ (under the legislation)
- The insurer considers that employment wasn’t the main contributing factor to the injury
- It wasn’t ‘reasonably necessary’ to have the medical treatment or to incur other expenses claimed
The Personal Injury Commission (PIC) is the central body for resolving all workers compensation disputes.
What this means for you: A denial doesn’t mean your claim is over. You have options to challenge the insurer’s decision, and many denials are successfully overturned when properly reviewed.
Next steps: If you have a dispute with an insurer, here are some options:
- Request an internal review by the insurer, who must respond within 14 days
- Lodge a dispute directly with the PIC
- Contact a specialist personal injury lawyer who offers free legal advice – it may be possible to get legal representation at no cost to you
Call 02 9264 4474 or chat to us now for free advice
Chat nowFind out how much you can claim.
Get startedYour rights and entitlements under workers compensation.
Does workers compensation affect future employment?
Employers are not allowed to discriminate against someone who has made a workers compensation claim. In fact, Federal Fair Work legislation prohibits employers from refusing to hire a worker who has made a claim. However, prospective employers can be hesitant about hiring someone who has a pre-existing condition that may affect their work or increase the employer’s risk of being held liable for an injury. For example, an employer would be well within their rights to refuse to hire a removalist who has a pre-existing back problem. On the other hand, if the removalist had made a full recovery, the employer can’t refuse to hire them.
Will I lose my job if I claim workers compensation?
The NSW Workers Compensation Act essentially prevents employers from terminating an employee who has sustained a work injury of any kind, purely because they’re unfit to resume work within the first six months. During this ‘protected period’, if an employer terminates an injured worker’s employment because they’re not fit for employment as a result of the injury, then the employer may be liable to pay a fine of up to $11,000.
Keeping the worker’s position available for the first six months while they undergo rehabilitation isn’t the only expectation of the employer. The employer needs to be actively involved in the recovery, which includes arranging a treatment plan alongside an approved workplace rehabilitation provider. Failure to do this can leave the employer at risk of fines in excess of $11,000.
Even if the employer fulfils its obligations within the first six months and then terminates the worker, the worker still has the right to seek reinstatement of their employment with the Industrial Relations Commission within two years of the dismissal.
Does workers compensation cover you to and from work?
Workers compensation in New South Wales doesn’t generally cover you for accidents while travelling between your home and your regular workplace. However, you’re covered if your journey was part of your work duty. Once you’ve arrived at your place of work, any trips you make in the course of doing your job are covered.
Here are some examples of where you would be covered by workers compensation:
- If you’ve been directed to pick up work mail on the way to work
- If you’ve been directed to travel to a training course at a location other than your normal place of work
- Travelling directly to a meeting, rather than going to the office first
- Driving from home to deliver equipment to a worksite
- If you’ve been involved in an accident due to fatigue when travelling home after a double shift
Can I still claim workers compensation if I’m a casual worker?
If you’re already receiving workers compensation, you may still be entitled to sue for damages if your injury was the result of your employer’s negligence, and your whole person impairment is greater than 15%. This is a common law claim, referred to as a work injury damages claim, and is for past and future loss of earnings – compensation for wages and superannuation lost because you have been unable to work or are unable to work into the future.
Can I sue while on workers compensation / WorkCover?
If you’re already receiving workers compensation, you may still be entitled to sue for damages if your injury was the result of your employer’s negligence, and your whole person impairment is greater than 15%. This is a common law claim, referred to as a work injury damages claim, and is for past and future loss of earnings – compensation for wages and superannuation lost because you have been unable to work or are unable to work into the future.
How long can you be on workers compensation / WorkCover?
If your level of impairment from your injury is less than 20% WPI (whole person impairment), your payments will stop after five years. If you’re assessed as having a WPI greater than 20%, you’ll continue to receive the lesser of:
- 80% of your pre-injury average weekly earnings, minus the amount you’re currently earning or have been assessed as able to earn, or
- The maximum weekly compensation amount minus the amount you’re currently earning or have been assessed as able to earn
Key Takeaways
These five essential points capture the most critical information injured workers need to know about workers compensation claims in NSW:
- You must report your workplace injury to your employer immediately and provide a certificate of capacity from your doctor—your employer then has 48 hours to notify their insurer, and claims should be lodged within six months of the injury.
- Workers compensation covers up to 95% of your pre-injury earnings for the first 13 weeks, then 80-95% from weeks 14-130 depending on your work capacity, with payments potentially continuing beyond 130 weeks if you meet specific criteria.
- All workers in NSW are covered by workers compensation including full-time, part-time, and casual employees, and you’re protected from dismissal during the first six months of your claim with employers facing fines up to $11,000 for unlawful termination.
- If your workers compensation claim is denied, you have the right to request an internal review, lodge a dispute with the Personal Injury Commission, or seek free legal advice—many law firms can secure IRO funding to cover your legal costs entirely.
- If your injury results in a whole person impairment of 15% or more and was caused by employer negligence, you can pursue a work injury damages claim for lump sum compensation that often reaches hundreds of thousands of dollars beyond standard weekly payments.
Workers Compensation Claim FAQs
Can I claim workers compensation if I'm injured during my lunch break at work?
It depends on the circumstances. If you’re injured while on a break at your workplace premises, you’re generally covered by workers compensation. However, if you leave the workplace to run personal errands during your lunch break, you may not be covered unless the activity was work-related or directed by your employer.
What happens if my employer pressures me not to lodge a workers compensation claim?
Your employer cannot legally prevent you from making a workers compensation claim or force you to take paid or unpaid leave instead. If you experience this pressure, you should still notify your employer of your injury in writing, lodge your claim directly with their insurer if needed, and consider speaking to one of our workers compensation lawyers for free legal advice.
How long do I have to wait before receiving my first workers compensation payment?
Once your claim is accepted by the insurer, you should start receiving weekly payments straight away. The insurer has 14 days from when your employer submits your claim to make a decision. If they need more time to assess your claim, you may be entitled to provisional payments for up to 12 weeks while they investigate.
Can I still claim workers compensation if I was partly at fault for my workplace injury?
Yes, you can still claim workers compensation even if you were partly responsible for your injury. Workers compensation in NSW is a no-fault system, which means you’re entitled to benefits regardless of who caused the accident, as long as your employment was the main contributing factor to your injury.
What's the difference between workers compensation weekly payments and a lump sum claim?
Weekly payments replace your lost wages while you’re unable to work due to your injury, calculated as a percentage of your pre-injury earnings. A lump sum claim compensates you for permanent impairment and is only available once your injury has stabilised and you’ve been assessed by a doctor as having a permanent impairment. You may be entitled to both types of compensation.
Will I lose my workers compensation payments if I start working part-time hours?
No, you won’t lose your payments entirely. If you return to work part-time, your weekly payments will be adjusted based on your current earnings and work capacity. During weeks 14-130, you’ll receive a percentage of your pre-injury earnings minus what you’re currently earning, with the exact percentage depending on whether you’re working more or less than 15 hours per week.
What should I do if the insurer only accepts part of my workers compensation claim?
If the insurer accepts some aspects of your claim but denies others—such as approving weekly payments but rejecting certain medical treatments—you have the right to dispute the denied portions. You can request an internal review by the insurer, lodge a dispute with the Personal Injury Commission, or speak with one of our specialist workers compensation lawyers.
Robert Hopper
Senior Managing Solicitor
An accredited specialist in personal injury law, backed by over 15 years’ experience in assisting injured Australians receive everything they’re entitled to with their workers compensation claim.
Related articles.
No Win No Fee Lawyers – Your Guide.
Get to know our no win no fee lawyers. We believe our no win, no fee, no disbursements guarantee is the best and fairest agreement in Australia. We’ll match you with a no win, no fee lawyer […]
Workers Compensation Payout Guide NSW.
If you’ve been injured at work in NSW, you probably know you’re entitled to workers compensation to cover your lost wages and medical expenses. But you may not know that in NSW, around $1.27 billion […]
Do I have a case?
Our senior lawyers will assess your case for free.
