Table 5.2: Income replacement

Part 3, Div 2 (Workers Compensation Act 1987).

No current work capacity *

First 13 weeks — lesser of:

• 95 % pre-injury average weekly earnings (PIAWE) or
• the maximum weekly compensation amount ($2,423.60) minus any deductible amount.

14–130 weeks — lesser of:

• 80% PIAWE or
• the maximum weekly compensation ($2,423.60)

NB: Workers will be subject to work capacity assessments at any point throughout the duration of the claim to gather information about the workers ability to return to work in pre-injury employment or suitable employment.

31–260 weeks: A worker has no entitlement to weekly payments after receiving weekly payments for 130 weeks unless the insurer has made an assessment that they have no current work capacity and this is likely to continue indefinitely

Weekly payments are the lesser of:

• 80% PIAWE minus the value of any deductible amount, or
• the maximum weekly compensation amount ($2,423.60) minus any deductible amount.

NB: Workers will be subject to a work capacity assessment at least every 2 years.

After 260 weeks (5 years)***: Weekly payments will cease except for workers who are determined to be workers with high needs (greater than 20% permanent impairment) and meet the requirements of s38(3A) of the 1987 Act.

Weekly payments are the lesser of:

• 80% PIAWE or
• the maximum weekly compensation amount ($2,423.60) Workers will be subject to a work capacity assessment at least every 2 years. However, workers with highest needs (greater than 30% permanent impairment) continue to be entitled to weekly payments without the requirement for a work capacity assessment.

*** Workers with highest needs are entitled to receive a minimum weekly payment of $978.00 providing they meet the requirements under s38A of the 1987 Act.

Current work capacity*

First 13 weeks — lesser of:

• 95% PIAWE minus earnings** or
• the maximum weekly compensation amount ($2423.60) minus earnings and the value of any deductible amount.

14–130 weeks

• Working 15 hours or more per week, the lesser of:
  • 95% PIAWE minus earnings or
  • the maximum weekly compensation amount ($2423.60) minus earnings and the value of any deductible amount.
• Working less than 15 hours per week, the lesser of:
  • 80% PIAWE minus earnings or
  • the maximum weekly compensation amount ($2423.60) minus earnings

NB: Workers will be subject to work capacity assessments at any point throughout the duration of the claim to gather information about their ability to return to work in pre-injury employment or suitable employment.

131–260 weeks: A worker has no entitlement to weekly payments after receiving weekly payments for 130 weeks unless:

• the worker is assessed by the insurer as having no current work capacity and likely to continue indefinitely to have no current work capacity, or
•  the worker (other than a worker with high needs) has completed an ‘  Application for continued weekly payments after 130 weeks: Form  ’ and submitted it to the insurer, and
• the worker is working 15 hours or more per week and earning at least $216 per week and has been assessed by the insurer as indefinitely incapable of undertaking further employment to increase their earnings, and
• Weekly payments are the lesser of:
  • 80% PIAWE minus earnings or
  • the maximum weekly compensation amount ($2423.60) minus any earnings

NB: Except for workers with highest needs, workers will be subject to a work capacity assessment at least every 2 years.

After 260 weeks (5 years)***: Weekly payments will cease, except for workers with greater than 20% permanent impairment who meet the requirements of s38, 1987 Act.

Weekly payments are the lesser of:

• 80% PIAWE minus earnings or the amount or
• the maximum weekly compensation amount ($2423.60) minus any earnings and the value of any deductible amount.

*Claims by the following exempt workers continue to be managed and administered as though the June 2012 changes never occurred and the above weekly payment regime does not apply:

• police officers, paramedics and firefighters
• workers injured while working in or around a coal mine
• bush fire and emergency service volunteers, and
• people with a dust disease claim under the Workers’ Compensation (Dust Diseases) Act 1942.

**Earnings means the amount to be taken into account as the worker’s earnings after the injury, calculated as whichever of the following is the greater amount:

• the amount the worker is able to earn in suitable employment, or
• the workers current weekly earnings.

*** Workers with highest needs are entitled to receive a minimum weekly payment of $978.00. Workers who were in receipt of weekly payments before 1 October 2012 may continue to be entitled to weekly payments after 260 weeks if:

• an assessment of the degree of permanent impairment is pending and has not been made because an approved medical specialist has declined to make the assessment on the basis that maximum medical improvement has not been reached and the degree of permanent impairment is not fully ascertainable, or
• the insurer is satisfied that the degree of permanent impairment is likely to be more than 20% (whether or not the degree of permanent impairment has previously been assessed).

(indexation of weekly payment amounts occurs on 1 April and 1 October each year) 

Due to statutory changes to scheme on 12/11/97, benefit rates depend on date of entitlement.

Pre 12/11/97 claims: Worker is entitled to receive weekly payments — old rates apply.

Post 05/04/10 claims:

First 13 weeks:

If no current work capacity: 95% of pre-injury average weekly earnings (PIAWE)* less deductible amount** or maximum (twice State average weekly earnings — $2,660), whichever is the lesser.

If current work capacity: the difference between 95% PIAWE less deductible amount and the worker’s current weekly earnings or the difference between the maximum (twice State average weekly earnings — $2,660) less the worker’s current weekly earnings, whichever is the lesser — s161, Workplace Injury Rehabilitation and Compensation Act 2013

>13 weeks:

• If no current work capacity: 80% of PIAWE less deductible amount or maximum (twice State average weekly earnings — $2,660), whichever is the lesser.
• If current work capacity: the difference between 80% of PIAWE less deductible amount and 80% of the worker’s current weekly earnings or the difference between the maximum (twice State average weekly earnings — $2,660) less 80% current weekly earnings, whichever is the lesser — s162

>52 weeks:

• Weekly payments continue as above, except PIAWE is reduced as no further entitlement to shift allowance or overtime (earnings enhancements) — s152, s153 and s157.

>130 weeks (Note for pre 1 Jan 2005 claim ≥ 104 weeks):

• Weekly payments can continue to be paid until retirement age (except where worker injured within or after 130 weeks of retirement age where maximum of 130 weeks applies) as long as: 
  • the worker is likely to have no current work capacity indefinitely. The weekly payment is then 80% of PIAWE less deductible amount or maximum (twice State average weekly earnings — $2,660), whichever is the lesser — s163, or 
  • the worker has a current work capacity and has returned to work at their maximum capacity and is working at least 15 hours per week and earning at least $177 per week. The weekly payment is then the difference between 80% of PIAWE less deductible amount and 80% of the worker’s current weekly earnings or the difference between the maximum which is twice State average weekly earnings — $2,660) and 80% current weekly earnings, whichever is the lesser — s165, or
  • the worker is working 15 hours per week and earning at least $177 per week and requires surgery and is incapacitated for work — worker entitled to maximum of 13 weeks of weekly payments on same basis as s162 above if worker applies more than 13 weeks after weekly payment entitlement has ceased after 130 weeks — s164.

*Pre-injury average weekly earnings is defined in s152 to s158 but generally means a worker’s average ordinary earnings during the 12 months prior to injury excluding any week that the worker was not actually working and not on paid leave expressed as a lump sum and any earnings enhancements (shift allowance, overtime) in that 12 months. Earnings enhancements are included in PIAWE for the first 52 weeks of weekly payments only.

**Deductible amount is defined in s152 but generally means the total value of any ongoing employment benefits including non-pecuniary benefits such as the value of residential accommodation, motor vehicle use, health insurance and education fees.

For the first 26 weeks: Workers under an industrial instrument s150(1)(a), Workers’ Compensation and Rehabilitation Act 2003 — the greater of:

• 85% of the worker’s NWE, or
• amount payable under the worker’s industrial instrument.

Requirement to pay basic weekly payment while waiting for information (s 146B) if insurer does not have the information necessary to calculate the weekly payment of compensation to which the worker is entitled – 55% of Queensland Ordinary Time Earnings.

Workers not under an award or agreement s151(1)(a) — the greater of:

• 85% of normal weekly earnings (NWE)*, or
• 80% of Queensland Ordinary Time Earnings (QOTE) **.

QOTE is $1,953.70 as at 1 July 2025.

Workers on contract s152(1)(a) — the greater of:

• 85% NWE*, or
• the amount payable under the worker’s contract of service.

From the end of the first 2 years to the end of the first 5 years: where a worker demonstrates that the injury could result in a degree of permanent impairment (DPI) of more than 15% — s150(1)(c)(i), s151(1)(c)(i) and s152(1)(c)(i) — the greater of:

• 75% of the worker’s NWE*, or
• 70% of QOTE**.

Workers with DPI less than or equal to 15%, receive an amount equal to the single pension rate.

Total amount payable for weekly benefits is $422,295 as at 1 July 2025.

*NWE can include amounts paid to the worker regularly for overtime, higher duties, penalties and allowances. It cannot include some allowances (such as those paid for travelling, meals, education, and living away from home), superannuation contributions or lump sum payments made on termination of a workers’ employment for superannuation or accrued leave — s106 Workers’ Compensation and Rehabilitation Regulation 2025.

**QOTE for a financial year, means the amount of Queensland full-time adult persons ordinary time earnings declared by the Australian Statistician in the original series of the statistician’s average weekly earnings publication most recently published before the start of the financial year (s107).

A cap on weekly income compensation of $3,163 per week applies for the duration of claims and a cap on total income compensation payments of $273,220 (the General Maximum Amount) also applies These amounts are for 2025-26 and  indexed annually. 

Income compensation payments are calculated based on a worker’s pre-injury average earnings over a 12-month period for award and non-award workers (or period employed if less than one year). 

Any period taken as leave without pay is excluded from the calculation of average earnings.

A step down to 85% of the worker’s pre-injury weekly rate of income applies after 26 weeks of payments,

A safety net minimum weekly rate of income compensation applies if the step down to 85% of a worker’s pre-injury weekly rate of earnings would otherwise result in income compensation falling below:

• the base award rate under provisions of an industrial instrument to which the worker would be entitled to be paid in a week (plus any regular additional earnings – over award payments, overtime and allowances)
• if the worker is not covered by an industrial instrument, the minimum amount to which the worker would be entitled under the Minimum Conditions of Employment Act 1993 to be paid in a week.

 –s54, s55, s56, s57

s69B, Workers Rehabilitation and Compensation Act 1988

≤ 26 weeks:

• 100% of weekly payment i.e. the greater of normal weekly earnings (NWE), or ordinary-time rate-of-pay for work engaged in immediately prior to incapacity.
• NWE is the worker's average weekly earnings with that employer over the previous 12 months or the period of employment if less than 12 months. Overtime is included if it was regular and would have continued to be paid if the worker was not incapacitated.

> 26 weeks to ≤ 78 weeks:

• 90% of weekly payment. The Act provides that the worker is to receive 95% of the weekly payment if the employer fails to provide suitable alternative duties.

> 78 weeks:

• 80% of weekly payment. The Act provides that the worker is to receive 85% of the weekly payment if the employer fails to provide suitable alternative duties.
• Cessation of entitlement to weekly payments depends on the worker’s degree of whole person impairment (WPI):
  • 9 years if < 15% WPI
  • 12 years if ≥15% WPI but < 20% WPI
  • 20 years if ≥20% WPI but < 30% WPI, or
  • To date of cessation of employment under s87 (normally the pension age) if ≥ 30% WPI.

Minimum amount payable is 70% of the basic salary (which is $767.90 per week, as at 1 January 2025) or 100% of the weekly payment determined under s69 — whichever is the lesser amount (or pro rata equivalent) — s69B(3).

First 26 weeks of incapacity — Where the worker is totally incapacitated, weekly compensation is payable at the worker’s average pre-incapacity earnings — s39(4)(a), Workers Compensation Act 1951

Where the worker is partially incapacitated during the first 26 weeks, weekly compensation is payable calculated as the difference between:

• the worker’s average pre-incapacity weekly earnings, and
• the average weekly amount that the worker is being paid for working or could earn in reasonably suitable employment: s39(4)(b)

If the worker is totally incapacitated for any period after the 26-week period, they are entitled to weekly compensation equal to:

• 100% of the worker’s average pre-incapacity weekly earnings — if 100% of the worker’s average pre-incapacity weekly earnings is less than the pre-incapacity floor for the worker, or
• the statutory floor — if 100% of the worker’s average pre-incapacity weekly earnings is more, but 65% of those earnings is less, than the pre-incapacity floor for the worker, or
• whichever is more — if 65% of the worker’s average pre-incapacity weekly earnings is more than the pre-incapacity floor for the worker — s41(1)

If the worker is partially incapacitated for period after the 26-week period, they are entitled to weekly compensation equal to the difference between the weekly amount the worker is being paid for working or could earn in reasonably available suitable employment and:

• 100% of the worker’s average pre-incapacity weekly earnings if that amount is less than the statutory floor, or
• the statutory floor if the relevant percentage of the worker’s average pre-incapacity weekly earnings is less than the statutory floor, or
• the statutory ceiling if the relevant percentage of the worker’s average pre-incapacity weekly earnings is more than the statutory ceiling 3, or
• in any other case — the relevant percentage of the worker’s average pre-incapacity weekly earnings — s42(1)

For these purposes the ‘relevant percentage’ is:

• 65% if the worker is not working or works 25% of the worker’s average pre-incapacity weekly hours or less, or
• 75% if the worker is working more than 25% of the worker’s average pre-incapacity weekly hours but not more than 50%, or
• 85% if the worker is working more than 50% of the worker’s average pre-incapacity weekly hours but not more than 75%, or
• 95% if the worker is working more than 75% of the worker’s average pre-incapacity weekly hours but not more than 85%, or
• 100% if the worker is working more than 85% of the worker’s average pre-incapacity weekly hours — s42(2)

Definitions:

• Pre-incapacity floor, for a worker, means the statutory floor that applied immediately before the initial incapacity date for the worker in relation to the injury — s41(2)
• Statutory floor, means the national minimum wage set by a national minimum wage order in an annual wage review by Fair Work Australia — s36G(1)
• Statutory ceiling, in relation to an amount, means 150% of AWE at the time the amount is to be paid — s42(4).

< 26 weeks:

• NWE i.e. worker’s pre-injury gross weekly remuneration from all employment, including overtime and shift penalties (where worked in a regular and established pattern) — s49A (for NWE) and s64 Return to Work Act 1986

> 26 weeks:

s65(1B) - Whichever is the lesser of:

• 75% of  NWE; or 
• 150% of average weekly earnings.

s 65 Long-term incapacity 

• s65(7) - Where a worker is totally incapacitated for work and the compensation the worker is entitled to under subsection (1B) is less than the amount calculated in accordance with subsection (12), the worker shall, notwithstanding subsection (1B), but subject to subsection (10), be entitled to compensation equal to 90% of their loss of earning capacity or the amount so calculated, whichever is the lesser.:
  • 90% of loss of earning capacity; or
  • 50% of average weekly earnings plus 12.5% of average weekly earnings for a dependant spouse and 6.25% of average weekly earnings for each dependent child.

Post 26 weeks weekly benefits are indexed annually on 1 January in accordance with movements in average weekly earnings as published by ABS for Northern Territory Full Time Adult Persons Ordinary Time Earnings. — s3(1), s65(3) and s65(3A).

< 104 weeks: 

• Weekly  benefits may reduce or cease, if the worker has been deemed to have an earning capacity, provided that suitable employment is reasonably available — s65(2)(b)(i)

> 104 weeks

• Weekly benefits may reduce or cease, if the worker has been deemed to have an earning capacity, without having regard to the availability of suitable employment — s65(2)(b)(ii)

> 260 weeks —

• Entitlement ceases unless WPI 15% or greater s65(1BA) where entitlement can continue until pension age

< 45 weeks — see s19(2), Safety, Rehabilitation and Compensation Act 1988:

• 100% NWE which includes overtime if regular and required and penalties, with no maximum cap applied, less greater of the employee’s actual earnings or ability to earn (together, ‘AE’).

> 45 weeks — see s19(3):

• If not working — 75% of NWE.
• If working >0% to <=25% of pre injury hours — 80% of NWE less AE
• If working >25% to <=50% of pre injury hours — 85% of NWE less AE
• If working >50% to <=75% of pre injury hours — 90% of NWE less AE
• If working >75% to <100% of pre injury hours — 95% of NWE less AE
• If working 100% of pre injury hours — 100% of NWE less AE.

Minimum earnings — see s19(7): $594.46p/w
Additional for prescribed person — see s19(8): $147.20 p/w,
Additional for each dependent child — see s19(9): $73.53 p/w
Maximum amount of compensation after 45 weeks’ incapacity — see s19(5):

– $3015 p/w from 14 August 2025 (150% of Average Week Ordinary Time Earnings for Full-time Adults as published by Australian Bureau of Statistics).

Compensation payments for ex-employees are increased by reference to the ABS Consumer Price Index for year ending 31 December applicable from 1 July each year.

Retired Employees (those not currently working and earning any income):

The combined workers’ compensation and employer funded superannuation benefit payable to retired employees is the equivalent of 70% of their former normal weekly earnings. This is calculated by subtracting from the amount of compensation otherwise payable

• (i) the employer-funded part of their weekly superannuation pension (or its deemed weekly interest from the employer funded lump sum), and
• (ii) 5% of the employee’s former normal weekly earnings to equate with the typical superannuation contribution most employees would have been paying had the employee not retired.

The above mentioned ‘amount of compensation otherwise payable’ takes into account any actual or able to earn amount — see ss20(3), 21(3) and 21A(3).

As per s23(1) compensation ceases to be payable to an employee who has reached pension age, unless their date of injury has reached the age that is 2 years before pension age in which case they will receive a maximum of 104 weeks of compensation as per s23(1A).

< 45 weeks — 100% NWE less greater of the employee’s actual earnings or ability to earn (together, ‘AE’). — s31(2), Seafarers Rehabilitation and Compensation Act 1992.

> 45 weeks — s31(5):

• if not working — 75% of NWE.
• if working >0% to <=25% of pre injury hours — 80% of NWE less AE, or
• if working >25% to <=50% of pre injury hours — 85% of NWE less AE
• if working >50% to <=75% of pre injury hours — 90% of NWE less AE
• if working >75% to >100% of pre injury hours — 95% of NWE less AE
• if working 100% of pre injury hours — 100% of NWE less AE.
• Minimum earnings — see s31(9) $594.96594.46 per week
• Additional for prescribed person — see s31(10) 147 $147.20 per week
• Additional for each dependent child — see s31(11) $7373.53 per week
• Maximum amount of compensation after 45 weeks’ incapacity — see s31(7)
• Maximum: $30153015per week from 14 August 20252025 (150% of Average Week Ordinary Time Earnings for Full-time Adults as published by Australian Bureau of Statistics).

s38(1) compensation ceases to be payable to an employee who has reached pension age, unless their date of injury has reached the age that is 1 year before pension age in which case they will receive a maximum of 104 weeks of compensation as per s38(2).

Military Rehabilitation and Compensation Act 2004 (MRCA):

• 100% normal earnings (NE) for current members — Chapter 4 Part III.
• <45 weeks — 100% NE for former members — s129.
• >45 weeks — if not working: 75% of NE — s131.
• if working >0% to <=25% of pre injury hours — 80% of NE less actual earnings (AE)
• if working >25% to <=50% of pre injury hours — 85% of NE less AE
• if working >50% to <=75% of pre injury hours — 90% of NE less AE
• if working >75% to <100% of pre injury hours — 95% of NE less AE, or
• if working 100% of pre injury hours — 100% of NE less AE.
• Minimum: Federal Minimum Wage — s179.
• Maximum: no maximum.
• Compensation payments for ADF earnings are increased by reference to the ADF pay scales. Compensation for civilian earnings are increased by reference to the ABS Wage Price Index.
• NE is reduced by any actual or able to earn amount from employment.
• Compensation ceases to be payable to a person who has reached pension age, unless their service injury or disease occurs 2 years before pension age in which case they will receive a maximum of 104 weeks of compensation as per s121.

Compensation where the person is in receipt of superannuation

• NE is reduced by amounts of Commonwealth-funded superannuation received as a result of the retirement. 

Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988 (DRCA):

• <45 weeks — see s19(2): 100% NEW which includes overtime and allowances
• >45 weeks — see s19(3): If not working — 75% of NWE
• if working >0% to <=25% of pre injury hours — 80% of NWE less Able to Earn
• if working >25% to <=50% of pre injury hours — 85% of NWE less Able to Earn
• if working >50% to <=75% of pre injury hours — 90% of NWE less Able to Earn
• if working >75% to <100% of pre injury hours — 95% of NWE less Able to Earn
• if working 100% of pre injury hours — 100% of NWE less Able to Earn.
• Minimum earnings — see s19(7): $594.46 pw
• Additional for prescribed person — see s19(8): $147.20 pw
• Additional for each dependent child — see s19(9): $73.53 pw
• Maximum amount of compensation after 45 weeks’ incapacity — see s19(5):
• $2,757.15 (150% of Average Week Ordinary Time Earnings for Full-time Adults as published by Australian Bureau of Statistics).
• Compensation payments are increased by reference to the ABS Wage Price Index
• NWE is reduced by any actual or able to earn amount from employment.
• Compensation ceases to be payable to a person who has reached pension age, unless their injury occurs 2 years before pension age in which case they will receive a maximum of 104 weeks of compensation as per s23(1A)

Compensation where the person is in receipt of superannuation

• The combined workers’ compensation and employer funded superannuation benefit payable to retired employees is the equivalent of 70% of their former normal weekly earnings. This is calculated by subtracting from the amount of compensation otherwise payable
• the employer-funded part of their weekly superannuation pension (or its deemed weekly interest from the employer-funded lump sum), and
• 5% of the employee’s former normal weekly earning to equate with the typical superannuation contribution most employees would have been paying had the employee not retired.

MRCA s5– Yes. 

DRCA s4 & s8 – Yes. 

MRCA – No s168, s180 

DRCA – No s8

Employees (Accident Compensation Act 2001)

• For weeks 2 to 5, 80% of short term rate, which is defined as:
  • Permanent employees — earnings in the 4 weeks prior divided by number of weeks in which they were derived — Schedule 1, Part 1, clause 34
  • Non-permanent employees — all earnings in the 4 weeks prior divided by number of weeks in which they were derived — Schedule 1, Part 1, clause 36
• Week 5, 80% of the long term rate, which is defined as:
  • Permanent employees — earnings from employment with that employer in the 52 weeks prior divided by weeks in which they were derived — Schedule 1, Part 1, clause 34
  • Non-permanent employees — all earnings in the 52 weeks prior divided by 52 weeks — Schedule 1, Part 1, clause 36

Shareholder-employees

Either:

• earnings as an employee in the 52 weeks prior to incapacity divided by the number of weeks worked
• earnings as an employee in the 52 weeks prior to incapacity and as a shareholder employee in the relevant year divided by weeks as an employee plus weeks worked as a shareholder-employee, or
• weeks as an employee divided by 52 plus shareholder-employee earnings divided by 52 — Schedule 1, Part 1, clause 39

Maximum weekly compensation amount is NZ$2,257.17. Will be reduced by a proportion of any earnings derived in the period of incapacity.

Minimum for full-time earners — 80% of NZ$908.00. (The IPRC Amendment Act 2008 removed the need for a different minimum earner rate for full-time earners under 18).