Step down (13-week and 52-week)

Once your worker's claim has been accepted for liability, they will start to receive weekly payments to assist with their recovery whilst they are unable earn their usual income.

Entitlements to weekly payments are time limited and will be adjusted or stopped when the injured worker has the ability to work and earn an income.

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First 13 weeks of payments

14 weeks onwards

Entitlements

52-week step down

First 13 weeks of payments

For the first 13 weeks of the claim, the injured worker will receive up to 95 per cent of their pre-injury average weekly earnings (PIAWE), less any income they earn that week.

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14 weeks onwards

If your employee has not returned to 15 hours of work or more per week, their entitlement will drop to 80 per cent of their pre-injury average weekly earnings, less any income they earn that week. This is known as a 'step down'.

If they are working more than 15 hours per week, they will continue to receive the 95 per cent PIAWE entitlement rate, less any income they earn that week.

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Entitlements

  Working more than 15 hours per week Working less than 15 hours per week Not working 
0-13 weeks Entitled to 95% of PIAWE (less any earnings) Entitled to 95% of PIAWE (less any earnings)
Entitled to 95% of PIAWE
14-130 weeks Entitled to 95% of PIAWE (less any earnings)
Entitled to 80% of PIAWE (less any earnings)
Entitled to 80% of PIAWE

NB: There is a maximum PIAWE entitlement amount that is reviewed and updated twice a year.

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52-week step down

In late 2018, the NSW Government amended the workers compensation legislation and removed the 52-week step down for shift and overtime earnings. This change only applies to claims that were lodged after the new amendment commenced.

This means, if a worker sustained an injury:

  • on or after 26 October 2018, shift and overtime amounts continue to be included in the calculation of PIAWE after 52 entitlement weeks
  • before 26 October 2018, the insurer must exclude shift and overtime amounts from the PIAWE calculation after 52 entitlement weeks.

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