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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 $1.14 billion is paid out in additional lump sum payouts to workers compensation recipients every year.*
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.
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.
*According to SIRA Open Data, June 2024
The first thing to understand is that after you’re injured, even if your workers compensation claim is approved, you won’t automatically receive everything you’re entitled to. We’ve helped thousands of people claim additional amounts, and here are the most common reasons why we find people are missing out:
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.
The first step in getting your full workers compensation entitlements is to understand all the weekly payments, medical expenses, and lump sum payouts you may be eligible to claim:
| 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.
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Get startedThe maximum weekly compensation amount from 1 October 2024 to 31 March 2025 is $2,523.00.* This amount is capped and indexed in April and October each year.
*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 (as of November 2024) |
|---|---|
| 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 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 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 $2,523 x 5 years – or a total of $655,980.* 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.
*As of November 2024
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 (as of November 2024) is $740,550. *
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 13 15 15 or chat to us now for free advice
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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. |
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 February 2024, around $1.14 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 $740,550**, 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, June 2024
**As of November 2024
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.
A work injury damages (common law) claim is for a lump sum workers compensation payout you can claim if your injury was caused by your employer’s negligence.
In NSW, most work injury damages payouts are based on past and future loss of earning capacity. Once you’ve claimed work injury damages, you have no further entitlement to workers compensation benefits (including weekly payments, and medical, hospital and rehabilitation expenses) associated with that injury. Also, the weekly payments that have already been paid to you may have to be repaid out of the settlement amount.
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:
No, in NSW you can’t claim workers compensation (WorkCover) pain and suffering payouts, however, you can claim for permanent impairment, which is essentially a lump sum 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.
You must have 11% or more permanent impairment for a physical injury or 15% or more for a primary psychological injury to be entitled to receive a permanent impairment payout.
It’s highly recommended that you seek specialist legal advice before lodging a permanent impairment claim. You can get free legal advice by calling 13 15 15.
Call 13 15 15 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 13 15 15.
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 surrounds, including Parramatta and Newcastle. If you’re concerned about being too late to claim work injury damages, call us on 13 15 15 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.
Robert Hopper
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.
Our senior lawyers will assess your case for free.
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