Workers compensation insurance is designed to protect both the employer and the employee. Every business in Australia, regardless of their state or territory, needs to have workers compensation insurance that aligns with what is expected within their respective state. If your business hires employees on a full-time, casual, contract, or part-time basis, you need to have workers compensation insurance. This blog will explore how the workers compensation payments are calculated.  If you would like more information on workers compensation in its entirety, please visit this page

What is the eligibility criteria for workers comp?

There is certain criteria that must be met in order for a worker to receive workers compensation. If you were hurt or became ill as a result of your work, not only could you get workers compensation benefits, but also payments for medical bills and any lost wages will be paid out to you. As long as you’re eligible, you could receive compensation regardless of who was at fault for the injury. In general, there are four basic eligibility requirements for workers compensation benefits:

  • You must be an employee at the business
  • Your employer must carry workers compensation insurance
  • You must have a work-related injury or illness
  • You must meet your state’s deadlines for reporting the injury and filing a claim. 

What affects workers compensation?

There are a variety of factors that could affect how much workers compensation you are eligible to receive. Such factors include:

  • The industry you are in
  • Your history of claims
  • Your annual wages
  • The number of employees at the company. 

The industry that you are in can affect the amount of compensation you receive because industry rates are set by WorkSafe. These rates reflect the claims experience in which the employer operates. 

Any claims that the business has been in could affect the premium of a future claim. For more information on this, please visit Safe Work Australia.  

Workers compensation calculation

Your workers compensation claim can be calculated using a variety of factors. The weekly amount available could depend on whether you have a partial or total disability. If this is the type of injury, then the type of compensation will be different to someone with a temporary injury. 

If your injury is not permanent, there are certain levels and time periods that determine how much of your workers compensation is paid out to you. The workers entitlement would be as follows: 

First 13 weeks of injury 95% of pre-injury average weekly earnings.
After 13 weeks and up to 130 weeks of injury 80% of pre-injury average weekly earnings if the worker is either not working or working less than 15 hours per week.  95% or pre-injury earnings if the worker is working more than 15 hours. 
After 130 weeks up to 260 weeks of injury 80% of pre-injury average weekly earnings. Specific requirements must be satisfied for payments to continue after 130 weeks.
After 260 weeks of injury 80% of pre-injury average weekly earnings. Payments will only continue if a worker has 21% whole person impairment or more. 


If you think you have a workers compensation claim, do not delay in starting the process to make your claim. Please use this claim calculator to start the process of your claim.