Workers compensation based on degree percentage of impairment

Workers compensation based on degree percentage of impairment

Victorian workers injured in the course of their employment may be entitled to lump sum compensation by lodging an impairment benefit claim.

The impairment benefit process is a no-fault statutory scheme, meaning that workers are not required to show that their employer has engaged in negligent conduct. This allows injured workers to access compensation in accordance with their percentage impairment, subject to minimum thresholds.

 In reviewing a claim for impairment benefits, the nominated insurer will consider:

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

The insurer will usually engage an independent medical examiner in order to assist with this assessment.

Impairment benefit claims can be made for both physical and primary psychological injuries.

 What is the percentage impairment threshold for my physical Injury?

 Where a worker has a physical injury there are two thresholds that are relevant in determining whether they have an entitlement to workers compensation under the impairment benefit scheme.

 For musculoskeletal injuries (bone, ligament, tendon etc.) the minimum threshold for compensation is 5% WPI. 

For non-musculoskeletal injuries the minimum threshold for compensation is 10% WPI.

How much compensation can I obtain for my physical injury?

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%:

WPIYear of Injury


FY21FY22FY23
0%-4%$0$0$0
5%$14,696$14,883$15,257
10%$27,214$27,566$28,259
15%$44,209$44,770$45,881
20%$61,138$61,908$63,437
29%$86,360$87,440$89,590

Other musculoskeletal injuries between 0% - 29%:

WPIYear of Injury


FY21FY22FY23
0%-4%$0$0$0
5%$13,360$13,530$13,870
10%$24,740$25,060$25,690
15%$40,190 $40,700$41,710
20%$55,580$56,280$57,670
29%$83,282$84,324 $86,398

Non-musculoskeletal injuries between 0% - 29%:

WPIYear of Injury


FY21FY22FY23
0-9%$0$0$0
10%$21,560$21,840$22,390
15%$37,760$38,240$39,190
20%$53,960$54,640$55,990
29%$83,120$84,160$86,230

All physical injuries above 30%: 

WPIYear of Injury


FY21FY22FY23
30%$86,360$87,440$89,590
50%$194,070$196,580$201,590
70%$301,870$305,780$313,590
81%-100%$636,470$644,640$660,970

What is the percentage impairment threshold for my psychological injury?

Where a worker has a primary psychological injury the WPI threshold for workers compensation under the impairment benefit scheme 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 psychological injury?

In order to receive workers compensation for a psychological injury under the impairment process, the injury must be a primary rather than secondary psychological 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 a result of bullying and harassment in the workplace, or exposure to traumatic events, this will be a primary psychological injury. If you develop anxiety and depression, flowing from a primary physical injury, this will be a secondary injury.

How much compensation can I obtain for my primary psychological 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*:

WPIYear of Injury


FY21FY22FY23
0-29%$0$0$0
30%$86,360$87,440$89,590
40%$140,170$141,980$145,590
50%$194,070$196,580$201,590
60%$247,970$251,180$257,590
70%$301,870$305,780$313,590
80%-100%$636,470$644,640$660,970

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 your percentage of impairment may be reduced to cut away any parts of your injury that were pre-existing or otherwise do not form part of your 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 for 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 reinjured 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 workers apportioned WPI will be 3% and they will not have an entitlement to further compensation as 3% is under the relevant threshold
  • 15% to 20% – the workers apportioned WPI will be 5% and they may have an entitlement to further compensation as 5% meets the relevant threshold.

More information

If you 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, call our legal team directly on (03) 9321 9988.

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

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