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 is paid out in additional lump sum payouts to workers compensation recipients every year.* This workers compensation payout guide explains everything you need to know about payouts and settlements in NSW, and how to make sure you receive absolutely everything you’re entitled to.
Many of our workers compensation clients are already receiving weekly benefits when they come to us for help, but we often uncover additional amounts and lump sums they’re entitled to. If your workers comp claim is simply ‘processed’, there’s a risk you’ll miss out on entitlements, and lump sum payouts can be substantial.
*According to SIRA Open Data, updated February 2026
If your work has affected your mental health, it’s important to understand how these changes to NSW law may affect your rights.
From 1 July 2026, stricter requirements now apply to psychological injury claims. This means some workers who may have qualified under the previous rules may not qualify under the current system. If you’re unsure where you stand under the new rules, it may help to seek advice so you can better understand your options. We’re here to help, call us on 13 15 15.
Even if your claim is approved, insurers don’t automatically pay everything you’re entitled to. We’ve helped thousands of people claim additional amounts. Here are the four most common reasons we find injured workers missing out on compensation—and how we help fix them:
This is very common, as insurers may argue that treatment or surgery isn’t ‘reasonably necessary’, or isn’t directly related to the work accident. However, insurer decisions can be challenged, and we often get them overturned.
This is another situation we come across a lot, but with the right evidence, we often get payments reinstated. For example, if your medical assessment didn’t take into account all aspects of your injuries, you may be deemed to be fit for work before you’re fully recovered. We can help by challenging insurers’ decisions.
We have hundreds of clients whose whole person impairment (WPI) assessments were revised after we presented additional evidence, which meant they could claim this lump sum payout.
If your injury was caused by negligence, this lump sum may be available to you. We’ve helped thousands of clients claim this additional payout, with many of them completely unaware they were entitled to it.
Read on to learn more about whether you qualify for additional workers compensation payments or lump sums, and how to get help claiming them.
A workers compensation payout in NSW includes weekly payments to replace lost wages, coverage of medical expenses, and potential lump sum payments for permanent impairment and work injury damages. The total payout depends on your injury severity, earning capacity, and whether employer negligence was involved.
| Workers Compensation Payments NSW | Description |
|---|---|
| Weekly payments | These are payments to compensate you for lost income while you’re off work. |
| Medical expenses | Payment of your medical, hospital, ambulance, rehabilitation (including home help) and travel expenses. |
| Permanent Impairment payout | A lump sum compensation payout to cover a permanent impairment as a result of a work-related injury or illness. |
| Work Injury Damages payout | Also known as a common law claim, this is a lump sum payout for damages if your injury was caused by your employer’s negligence. |
As you can see, there are two different lump sum amounts you may be entitled to claim on top of your weekly benefits and medical expenses.
These five essential points capture what injured workers in NSW need to understand about their workers compensation entitlements:
A specialist lawyer will review your circumstances and tell you how much you can claim.
In NSW, workers compensation pays up to 95% of your pre-accident earnings for the first 13 weeks, then up to 80% from week 14 onwards. The maximum weekly payment from October 2025 is $2,604.80*.
*For workers injured on or after 21 October 2019 – sira.nsw.gov.au
The following table summarises the weekly workers compensation payments you may be eligible to claim:
| Entitlement Period | Entitlement (updated February 2026) |
|---|---|
| Weeks 0-13 | Up to 95% of pre-accident earnings |
| Weeks 14-130 (no work capacity) | Up to 80% of pre-accident earnings |
| Weeks 14-130 (some work capacity*) | Up to 80% of pre-accident earnings (payments increase to 95% if working 15 hours per week and earning at least $202 per week) |
| Weeks 131-260 (no work capacity) | Up to 80% if you have no work capacity |
| Weeks 131-260 (some work capacity*) | Weekly benefits stop for most; some exceptions apply |
| After 5 years | Weekly payments are only available to people with WPI** >20% |
*Able to return to suitable employment working at least 15 hours a week, but not pre-injury employment
**WPI is whole person impairment – a scale used to measure the extent of your injuries
You can generally claim workers compensation for up to 5 years. However, if your permanent impairment is greater than 20% and you have been assessed as being unable to work indefinitely, then this five-year limit no longer applies.
Generally, your weekly workers compensation payments in NSW will continue until:
If you’re approaching 130 weeks on workers compensation in NSW, you’re at a critical stage of your claim. This is the point where weekly payments can stop if you’re not prepared — and many workers only understand their rights after payments have already ceased. Learn more about how long can you stay on workers compensation in NSW, and what happens after 130 weeks.
If you’re assessed as having a degree of permanent impairment of 20% or less, your weekly workers compensation payments in NSW will be limited to five years.
Workers with greater than 20% permanent impairment may be entitled to weekly payments beyond this five-year cap, and are entitled to medical treatment, service, or assistance for life.
The maximum entitlement to weekly benefits and lump sum payouts is summarised below:
In terms of weekly payments, for most people the maximum is $2,604.80 x 5 years – or a total of $677,248.* However, if your permanent impairment is greater than 20% this limit doesn’t apply.
In addition to these weekly payments, you may be entitled to payment for your medical, hospital, ambulance, rehabilitation, and travel expenses.
*Updated February 2026
If you make a successful lump sum claim for damages, your lump sum will be paid on top of your weekly benefits. You may also be entitled to a lump sum for permanent impairment. The permanent impairment payout must be made prior to any damages settlement.
The maximum permanent impairment lump sum is $757,760. *
*Updated February 2026 – sira.nsw.gov.au
Workers compensation lump sum settlements in NSW are determined by way of negotiation with the insurer, so it’s strongly advised that you engage a specialist workers compensation lawyer to act on your behalf.
Call 02 9264 4474 or chat to us now for free advice
Chat nowFind out how much you can claim.
Get startedThere are two ways you can get a workers compensation lump sum payment:
| Permanent impairment payout | A lump sum compensation payout to cover a permanent impairment as a result of a work-related injury or illness. |
| Work injury damages payout | Also known as a common law claim, this is a lump sum payout for damages if your injury was caused by your employer’s negligence. |
A permanent impairment lump sum is a compensation payout to cover a permanent impairment as a result of a work-related injury or illness. You must have 11% or more permanent impairment for a physical injury or at least 25% or more for a primary psychological injury to be entitled to receive a permanent impairment payout.
The maximum permanent impairment lump sum is $757,760 (updated February 2026 – sira.nsw.gov.au). It’s highly recommended that you seek specialist legal advice before lodging a permanent impairment claim. For a comprehensive guide to permanent impairment lump sums, refer to our whole person impairment compensation calculator and guide.
A lot of our workers compensation clients come to us wanting to know if they can make a work injury damages claim. This lump sum isn’t paid to you automatically – you have to apply for it.
You can claim work injury damages if:
| Permanent Impairment | Work Injury Damages |
| No fault required | Employer negligence required |
| Up to $757,760 | No maximum (negotiated) |
| Keeps weekly benefits* | Ends all entitlements |
| 11% WPI minimum | 15% WPI minimum |
For more detailed information, refer to our work injury damages claim guide.
*Weekly benefits and medical treatment remain ongoing, with the entitlement duration dependent on your level of permanent impairment
No, in NSW you can’t claim workers compensation (WorkCover) pain and suffering payouts; however, the permanent impairment lump sum described above is essentially a payment to compensate you for the overall effect your work injury has had on your life. This lump sum payout is in addition to any weekly payments, medical and related expenses that you may have received.
No. Workers compensation payments in NSW are primarily intended to cover lost wages and medical expenses to help people transition back to work. However, your case may end in a settlement in the following circumstances:
Workers compensation lump sum payments can be substantial. In the 12 months to September 2025, around $1.27 billion was paid to injured workers in NSW in common law payments and permanent impairment lump sums*. Lump sum payouts for permanent impairment range from $22,480 up to a maximum of $757,760**, and if you’re entitled to a common law damages settlement, it’s paid on top of this amount. So, for more serious injuries that were caused by employer negligence, payout amounts can be substantial. For a comprehensive guide to permanent impairment lump sums, refer to our whole person impairment compensation calculator and guide.
If you’re negotiating a workers compensation payout with an insurer, it’s important that you get independent legal advice on your options.
At Law Partners, we have one of Australia’s largest and most successful teams of workers compensation lawyers. Our team is headed up by Principal Chantille Khoury, who has trained and mentored some of the best workers compensation lawyers in NSW. We’ll negotiate your settlement on your behalf – we win over 99% of our cases, and we pride ourselves on our track record of winning more compensation for our clients.
*According to SIRA Open Data, February 2026
**Updated February 2026
Yes, you can go back to work when you’re able to do so. Even if you’ve received a permanent impairment payout, if you recover from your injuries and you’re able to return to work, your workers compensation settlement doesn’t prevent you from working and shouldn’t impact how you’re treated at work.
Call 02 9264 4474 or chat to us now for free advice
Chat nowFind out how much you can claim.
Get startedTo claim for work injury damages in NSW, you’ll need the following information:
To make a successful work injury damages claim, you need to provide strong evidence that you were injured because your employer breached their duty of care to you. We have an excellent track record of success in these claims, and you can get free legal advice from one of our no win no fee lawyers by calling 0292644474.
If you don’t agree with an insurer’s offer of settlement, you may consider starting mediation or court proceedings. Court proceedings for work injury damages must begin within three years of the injury date unless you have the court’s approval.
Our workers compensation specialists have been 100% successful in getting court approval to proceed after three years post-injury. We have specialist workers compensation lawyers based around Sydney and its surrounds, including Parramatta and Newcastle. If you’re concerned about being too late to claim work injury damages, call us on 0292644474 and we’ll let you know what your options are.
Before you can start mediation or court proceedings for work injury damages, you must serve a pre-filing statement giving the details of the claim and the evidence you’ll be using to support your claim on your employer or the insurer. In most cases, the claim must be referred for mediation in the Workers Compensation Commission before starting court proceedings.
The Workers Compensation Commission will attempt to mediate and reach a settlement through discussion with all parties.
Weekly payments replace your lost wages while you’re unable to work due to your injury, and they continue for a set period depending on your circumstances. Lump sum payouts are one-off compensation amounts you may be entitled to claim for permanent impairment or work injury damages—these are paid on top of your weekly benefits and medical expenses, and they can be substantial depending on the severity and impact of your injury.
Yes, you can still claim workers compensation in NSW even if you were partly at fault for the accident. Workers compensation is a no-fault system, which means you’re entitled to benefits regardless of who caused the injury, as long as it happened at work or in the course of your employment. However, if you’re claiming work injury damages (common law), the insurer may argue contributory negligence, which could reduce your lump sum payout.
You’re entitled to a permanent impairment lump sum if your injury results in a whole person impairment (WPI) of 11% or more for a physical injury, or 25% or more for a primary psychological injury. This assessment must be conducted by an approved medical assessor, and it’s important to ensure all aspects of your injuries are properly documented—we often find that clients’ initial assessments didn’t capture the full extent of their impairment, and we can help challenge these to secure the payout you deserve.
Accepting a workers compensation lump sum settlement can affect your eligibility for some Centrelink payments, as the settlement amount may be assessed as an asset or income for a period of time. It generally won’t affect your superannuation, but if you’re considering a TPD (total and permanent disability) claim through your super fund, it’s important to get advice before finalising your workers compensation settlement, as the timing and structure of settlements can impact your other entitlements.
Weekly payments should generally start within a few weeks of your claim being accepted by the insurer, though delays can occur if there are disputes about your capacity to work. Lump sum payouts for permanent impairment or work injury damages take longer—typically several months—as they require medical assessments, negotiations with insurers, and sometimes mediation or court proceedings. We work to expedite this process and ensure you’re not left waiting longer than necessary for the compensation you’re entitled to.
No, you can never be forced to accept a settlement offer—it’s entirely your decision. Insurers often make initial offers that are lower than what you’re truly entitled to, hoping you’ll accept quickly without getting legal advice. We strongly recommend having a specialist workers compensation lawyer review any settlement offer before you accept it, as once you sign, you generally can’t claim any additional amounts later, even if your condition worsens or you discover you were entitled to more.
If your payments have been stopped or reduced and you believe it’s unfair, don’t panic—insurer decisions can be challenged. Contact a workers compensation lawyer immediately to review your case, as there are time limits for disputing these decisions. We often successfully overturn insurers’ decisions by presenting additional medical evidence or challenging their assessments of your work capacity, and we can help get your payments reinstated while ensuring you receive everything you’re entitled to.
Understanding your workers compensation entitlements in NSW can seem complex, but you don’t have to navigate it alone. As we’ve covered in this guide, you may be entitled to weekly payments, medical expenses, permanent impairment lump sums, and work injury damages – but these aren’t always paid automatically. Many injured workers miss out on significant entitlements simply because they weren’t aware they could claim them, or because insurers denied legitimate claims.
At Law Partners, we’ve helped thousands of injured workers across NSW secure the full compensation they deserve. Our specialist workers compensation lawyers know how to challenge insurer decisions, gather the right evidence, and negotiate the best possible payouts. We work on a no win, no fee basis, so there’s no financial risk in getting help with your claim.
If you’ve been injured at work, don’t settle for less than you’re entitled to. Call us on 13 15 15 for a free claim check.
Chantille Khoury
Partner
Chantille is a multi-award-winning, preeminent workers compensation specialist with over 20 years’ experience. Having ranked top 6 nationwide in the highest category of the Doyle’s Guide, Chantille is now providing feedback on policy changes for the Personal Injury Commission and IRO.
Our senior lawyers will assess your case for free.
Request a callback