In Western Australia, worker income compensation payments are calculated based on a worker’s average earnings from 12 months before the injury. If the worker was employed for less than a year, the calculation will use their weekly rate from their first day of employment to the day before the injury occurred. After 26 weeks, these payments may be reduced to 85% of the worker’s pre-injury earnings, but only in certain specific circumstances.
In this blog, we provide a more detailed breakdown of how workers compensation payments are calculated in Western Australia.
Calculating Pre-Injury Earnings
If an insurer approves a worker’s injury claim, the worker may receive payments to replace their lost wages. These payments are based on the worker’s pre-injury income but are subject to minimum and maximum limits (in 2024/25, it is capped at $3,079.00 per week). Any periods of unpaid leave are excluded from the calculation. This applies to both award and non-award employees.
Initially, these payments are based on the worker’s earnings from 12 months before the injury. After 26 weeks, a step down to 85% of the worker’s pre-injury income may apply in some circumstances. A safety net minimum weekly rate of income compensation applies if the 85% step-down causes the payments to fall below the base award rate or the minimum amount under the Minimum Conditions of Employment Act WA, in some cases.
If a worker has multiple jobs, they could be eligible for income compensation for their other jobs as well. The worker’s pre-injury income is calculated separately for each job, and the amounts are added together to determine the total income compensation rate. However, this is capped based on the income of the job where you were injured.
Other Compensation Benefits
Medical and Health Expenses
Workers may claim compensation for a range of “reasonable” medical and health expenses. This could include first aid, medicines, surgeries, rehabilitation and other approved treatments. These medical compensation payments depend on how much each medical provider charges for their services. The injured worker is usually required to make upfront payments until the claim is accepted, but Medicare and private health insurance can also be used. Once the claim is approved, some medical providers will bill the employer’s insurance company directly, and you can request reimbursement.
At any point, the insurer can state they will not be reimbursing because they do not believe it is “a reasonable medical expense”. This can be argued, but it is an easier argument for treatment that can be proved to be necessary. For example, if you need reimbursement for life-changing surgery as opposed to a massage after receiving them regularly for 12 months with no improvement.
Learn More: Who Pays for Workers Compensation?
Permanent Impairment
In some cases, a work injury may leave workers permanently impaired, whether they can return to regular work duties or not. This usually involves a lump sum payment to the injured worker as compensation. This comes out of the prescribed amount for income, so if that is exhausted, you can’t access it.
You must obtain an impairment assessment from an Approved Permanent
Impairment Assessor (APIA) to be eligible for these benefits. These medical assessments determine your whole person impairment (WPI), a percentage that reflects the extent of permanent damage caused by the injury. This is done to pursue the employer in common law (min 15% WPI). The permanent impairment payout is then calculated based on the degree of impairment and a section of the Act that dictates amounts. Accepting a Permanent impairment payout will finalise your claim.
If you believe you have been incorrectly compensated, we strongly suggest seeking legal advice. Anvil Legal’s workers compensation lawyers could review your case (we cannot review settlements if you have already agreed to a figure) and determine the correct rate of compensation you are entitled to once you are a client. Contact us today for a free claim assessment.
