This article was originally published on 27 January 2023 and was updated on 19 March 2025.

Injured Victorian workers are eligible for various forms of compensation at different stages of their WorkCover claim. Once a claim is accepted, an injured worker can claim not only payment of medical and like expenses, but also weekly payments and in some cases a lump sum known as an Impairment Benefit. If a worker can then establish that they have suffered a serious injury under the law and fault on the part of their employer, they may also be entitled to compensation by way of Common Law damages.

This WorkCover compensation payout guide seeks to simplify what injured workers need to know in making their claims for monetary compensation.

Weekly payments

What are weekly compensation payments and how can I make a claim?

Weekly payments are a form of ‘wages’ which an injured worker can claim if they have lost wages as a result of their injury. 

If a WorkCover claim form is submitted with an initial 14-day Certificate of Capacity, it is automatically considered a claim for both weekly payments and medical and like expenses. If a WorkCover claim form is submitted without a Certificate of Capacity, it is considered to be a claim for medical and like expenses only.

If the claim is accepted, the worker must then regularly attend a treating practitioner to obtain 28-day Certificates of Capacity which demonstrate their fitness for pre-injury or alternative work. This legal document must be submitted to the insurer in order to obtain these payments.

When can I claim weekly compensation payments?

Weekly payments can be claimed from the date of the injury up until 130 weeks if there is no capacity to perform pre-injury hours.

There are only two instances in which weekly payments can be claimed beyond 130 weeks.

1. If a worker can establish that they have no current work capacity and this is likely to continue indefinitely, as well as having a more than 20% whole person impairment, they will continue to receive weekly payments after 130 weeks. 
2. Alternatively, a worker may be eligible for top-up payments if they can prove that, after the expiration of the 130 week period:

• They are working at least 15 hours per week; and
• They are earning at least $240 per week (indexed annually); and
• As a result of their injury, they are medically incapable of working beyond this level on an indefinite basis; and
• They have a whole person impairment (WPI) of greater than 20% whole person impairment.

These are strict tests and require sound supporting medical evidence.

How much can I claim for weekly compensation payments?

Under an accepted claim, the first 13 weeks of weekly payments are calculated at 95% of a worker’s pre-injury average weekly earnings (PIAWE). From 14 weeks to 130 weeks, weekly payments are calculated at 80% of a worker’s PIAWE.

If after 130 weeks, a worker is deemed to have no current work capacity and this is likely to continue indefinitely, and they meet the whole person impairment of more than 20% threshold, then they will continue to receive payments at the 80% rate.

In the event that a worker is eligible for top-up payments, there are special calculations which determine the payable rate. Read more about WorkCover top-up payments after 130 weeks.

Impairment benefit

What is an impairment benefit and how can I make a claim?

Under an accepted claim, a worker injured during the course of their employment, may be entitled to a lump sum claim called an Impairment Benefit. It is a no-fault claim which means that the worker does not have to establish that the injury occurred through the fault of their employer or a third party.

An impairment benefit claim is claimed through the WorkCover insurer and can be made for both physical and primary psychiatric injuries.

In reviewing the claim, the nominated insurer will consider:

• if the injury occurred in the course of employment; and
• whether the injury exceeds the relevant minimum whole person impairment (WPI) threshold.

The nominated insurer will arrange for the worker’s impairment levels to be assessed by an independent medical examiner. If a worker’s impairment is assessed as meeting the following minimum thresholds in accordance with the American Medical Association Guides (AMA) for physical injuries and the Guides to the Evaluation of Psychiatric Impairment (GEPIC) for psychiatric injuries, they will be entitled to an impairment benefit lump sum:

• 5% for musculoskeletal injuries (bone, ligament, tendon etc.)
• 10% for all other physical injuries
• 30% for psychiatric injuries.

When can I claim an Impairment Benefit?

An impairment benefit claim can be pursued at least 12 months after the worker’s date of injury or once an injury is considered to have ‘stabilised’. By law, a worker’s injury is considered to be stable when a worker has undertaken all substantive treatment and when the injury is unlikely to become significantly better or worse in the foreseeable future.

There is no time limit for making an Impairment Benefit claim.

How much Impairment Benefit can I claim?

The amount of payable compensation varies depending on the type of injury, percentage of assessment and the year of injury. For a comprehensive guide on payable amounts for certain injuries, please see the tables below.

If you are assessed as being above the relevant thresholds, you may have an entitlement to compensation in accordance with the below example tables*.

Musculoskeletal spine injuries between 0% - 29%:

WPI	Year of Injury
	FY21	FY22	FY23	FY24	FY25
0%-4%	$0	$0	$0	$0	$0
5%	$14,696	$14,883	$15,257	$16,478	$17,105
10%	$27,214	$27,566	$28,259	$30,514	$31,680
15%	$44,209	$44,770	$45,881	$49,558	$51,455
20%	$61,138	$61,908	$63,437	$68,525	$71,154
29%	$86,360	$87,440	$89,590	$96,780	$100,500

Other musculoskeletal injuries between 0% - 29%:

WPI	Year of Injury
	FY21	FY22	FY23	FY24	FY25
0%-4%	$0	$0	$0	$0	$0
5%	$13,360	$13,530	$13,870	$14,980	$15,550
10%	$24,740	$25,060	$25,690	$27,740	$28,800
15%	$40,190	$40,700	$41,710	$45,053	$46,778
20%	$55,580	$56,280	$57,670	$62,295	$64,685
29%	$83,282	$84,324	$86,398	$93,332	$96,919

All other physical injuries between 0% - 29%:

WPI	Year of Injury
	FY21	FY22	FY23	FY24	FY25
0%-9%	$0	$0	$0	$0	$0
10%	$21,560	$21,840	$22,390	$24,180	$25,100
15%	$37,760	$38,240	$39,190	$42,330	$43,950
20%	$53,960	$54,640	$55,990	$60,480	$62,800
29%	$83,120	$84,160	$86,230	$93,150	$96,960

All physical injuries above 30%:

WPI	Year of Injury
	FY21	FY22	FY23	FY24	FY25
30%	$86,360	$87,440	$89,590	$96,780	$100,500
50%	$194,070	$196,580	$201,590	$217,750	$226,040
70%	$301,870	$305,780	$313,590	$338,750	$351,640
81%-100%	$636,470	$644,640	$660,970	$713,780	$741,000

*These tables contain a sample of WPI% and are not intended as a definitive list of every possible level of WPI.

What is the percentage impairment threshold for my psychiatric injury?

Where a worker has a primary psychiatric injury, the WPI threshold for an impairment benefit claim is 30%. This is an undeniably high threshold, usually reserved for only the most severe psychiatric injuries.

What is the difference between a primary and secondary psychiatric injury?

In order to receive an impairment benefit for a psychiatric injury, the injury must be a primary rather than secondary psychiatric injury. That is, the injury must stem directly from a workplace incident or incidents, rather than as a consequence of a primary injury.

For example, if you develop PTSD as a result of bullying and harassment in the workplace, or exposure to traumatic events, this will be considered a primary psychiatric injury. If you develop anxiety and depression, flowing from a primary physical injury, this will be considered a secondary psychiatric injury.

How much compensation can I obtain for my primary psychiatric injury?

If you are assessed as being above the 30% WPI threshold, you may have an entitlement to compensation in accordance with the below example table*:

WPI	Year of Injury
	FY21	FY22	FY23	FY24	FY25
0-29%	$0	$0	$0	$0	$0
30%	$86,360	$87,440	$89,590	$96,780	$100,500
40%	$140,170	$141,980	$145,590	$157,250	$163,240
50%	$194,070	$196,580	$201,590	$217,750	$226,040
60%	$247,970	$251,180	$257,590	$278,250	$288,840
70%	$301,870	$305,780	$313,590	$338,750	$351,640
81%-100%	$636,470	$644,640	$660,970	$713,780	$741,000

*This table contains a sample of WPI% and is not intended as a definitive list of every possible level of WPI.

Will my pre-existing or subsequent injuries impact my percentage impairment?

Where a worker has injuries that are non-work related, or otherwise pre-date the current injury claim, the principle of apportionment may apply. This means that their impairment percentage may be reduced to cut away any parts of their injury that were pre-existing or otherwise, do not form part of their injury claim.

Example 1

A worker has a pre-existing, non-work-related condition of osteoarthritis that has been exacerbated due to their work duties.

Here a worker may be entitled to compensation for the work-related portion of the injury. That is, the independent medical examiner may establish that the worker’s total WPI is 10%, but only 5% is attributable to their work duties. Their WPI is therefore adjusted to 5%.

Example 2

A worker injures their back while performing their work duties. While they are undertaking physiotherapy for their back injury, they injure their hip and cause a further injury.

Here a worker may be entitled to compensation not only for the initial work-related injury, but also for the subsequent physical injury.

Example 3

A worker injures their shoulder while performing their work duties. A month later they are at a non-work-related social event and further injure their shoulder.

Here a worker will only be entitled to workers compensation for the work-related portion of the shoulder injury.

Example 4

A worker has previously made an impairment benefit claim for a right knee injury. They have recently re-injured their right knee whilst performing their work duties.

Here a worker may be entitled to compensation for only the “new” portion of the injury. For example, if their total WPI has increased from:

• 15% to 18% – the worker’s apportioned WPI will be 3% and they will not have an entitlement to further compensation as 3% is under the relevant threshold; or
• 15% to 20% – the worker’s apportioned WPI will be 5% and they may have an entitlement to further compensation as 5% meets the relevant threshold.

Common Law claim

What is a Common Law claim and how can I make a claim?

A Common Law claim is a ‘fault’ claim where an injured worker sues their negligent employer and/or a third party for compensation for their pain and suffering and loss of earning capacity (that is, economic loss).

In order to succeed in a Common Law claim, an injured worker must establish that:

• they have a Serious Injury; and
• the Serious Injury was caused by the negligence or fault of their employer and/or a third party.

A Common Law claim is initiated by the lodgement of a Serious Injury Application against the Victorian WorkCover Authority (VWA). The VWA will then determine if the injured worker meets the Serious Injury test under the law. The Serious Injury test is met if the worker rates at 30% whole person impairment under their Impairment Benefit claim, or alternatively, if they satisfy the ‘narrative test.’ The narrative test is met where the consequences of the worker’s injury are considered serious. This means that the consequences are very considerable, and more than significant, particularly when judged in comparison with other similar cases.

If a worker is granted a Serious Injury Certificate, the worker is then entitled to commence a common law (negligence) claim. If the Certificate is not granted, the worker can elect to have their case heard by a Court in an action called an Originating Motion in order to seek a Serious Injury Certificate.

Employers owe a non-delegable duty of care to take reasonable care for the health and safety of their workers. This means that an employer is required to take reasonable care to ensure that workers have a safe place and system of work and safe plant and equipment. Where an employer breaches their duty and this has caused the worker’s injury, a worker may be successful in a claim for negligence.

Both Serious Injury and negligence must be satisfied in order to be successful in a Common Law claim.

When can I make a Common Law claim?

For injuries which occur in Victoria, injured workers generally only have six years from the date of injury to commence a common law claim by lodging a Serious Injury Application.

How much can I claim?

The amount of damages claimable, and ultimately received, varies depending on the circumstances and nature of the injury, as well as the consequences of the injury.

For some examples of our outcomes, click below:

• Teacher wins her bullying case
• A fair recognition for a psychological injury caused by the negligence of an employer
• Professional printer’s painful prognosis
• Triumph after a young mum’s struggle with a back injury
• Dependency payout for weight-related death
• Teacher receives over $600,000 after being assaulted by student
• An injury 12 years in the making

More information

If you or a loved one have been injured at work, it is important to seek legal advice so that you understand your rights and entitlements. To arrange a free initial consultation to discuss your claim, contact our legal team on (03) 9321 9988 or submit an online enquiry.