If you’re making a workers compensation claim, it’s helpful to understand how payments are calculated, especially because you need to ensure that you can meet all of your expenses and obligations. Here’s what you need to know.
How are weekly payments calculated?
Weekly payments are calculated by a concept known as notional weekly earnings. This is also known as average weekly earnings. In essence, your earnings in the 12 months before the injury are used to find the average amount that you have earned in that time. This can also include the value of other benefits such as mobile phones, cars and carparks. It can also include:
- Other benefits, for example a mobile phone, company car or carparking.
- Income from a second job.
- Overtime payments.
This is a complicated area and legal advice is necessary to ensure that all of your entitlements are properly calculated.
Previous lump sum payments
If you had a previous work injury and entered into a prior redemption agreement (link to redemption payment page) that allowed you to receive a lump sum payment, your notional weekly earnings may be reduced. It will be necessary for you to have legal advice about this before making a decision about how to proceed.
What is a redemption agreement?
A redemption agreement is an agreement that an injured worker makes with the compensating authority to receive a lump sum payment in exchange for the worker giving up their entitlement to weekly payments and/or medical expenses. For further information, click through to our redemption payment page.