Does WorkCover have minimum wages?

WorkCover does not have minimum wages (weekly payments).

It does not take into account the national minimum wage or wage amounts referred to in an agreement or an award.

A person’s weekly payments are based on their pre injury average weekly earnings (PIAWE).

This is an average of what a person earned in the 12 months (or if not employed for 12 months, whatever period they had been employed for) with the employer prior to the injury occurring.

WorkCover does not have minimum income payment amounts

Generally speaking, there are four entitlements under the WorkCover system.

One of those entitlements is the payment of weekly payments – or income payments.

These income payments can be paid to a person if their ability to work has been impacted – either on a partial or total basis.

When calculating how much by way of weekly payments are to be paid to a person, WorkCover does not take into account the national minimum wage (which as of July 2023 is $812.60 per week gross, or $21.38 per hour) if a person is not covered by an award or other agreement.

If a person is covered by an award and it specifies that they are to be paid at a particular hourly rate and be paid for a certain number of hours per week, this is not relevant when it comes to calculating weekly payments.

What is relevant is what a person was paid prior to the injury.

WorkCover takes into account what your earnings were in the twelve months prior to suffering the injury.

The WorkCover insurer will take an average of your earnings over that twelve months and arrive at your base pre injury average weekly earnings (PIAWE) figure.

Here’s a very basic example as to how this works:

Say you earned $1000 gross every week prior to suffering the injury.

Your PIAWE would roughly be calculated like this:

$1000 x 4 = $4000 (monthly income).
$4000 x 12 = $48000 (total income earned during relevant period).
$48000 divided by 52 weeks = $1000 gross.

If you were not employed for a full twelve months prior to suffering the injury, then WorkCover will take into account what your earnings were over the total period you had been employed.

Again, here’s another very basic example as to how this works:

Say for example you were employed with this employer for four months and you earned $1000 gross per week.

Your PIAWE would roughly be calculated like this:

$1000 x 4 = $4000 (monthly income).
$4000 x 4 = $16000 (total income earned during relevant period).
$16000 divided by 16 weeks = $1000 gross.

This would be your base PIAWE figure.

For the first 13 weeks you’re paid at 95% of your PIAWE figure. Thereafter, you’re paid at 80%.

If the calculated payment amount falls under the minimum wage amount (referred to above) or the minimum wage amounts specified in an award or agreement specific to your job, this isn’t taken into account by the WorkCover insurer.

If using the above calculation methods the weekly payment payable to you under your WorkCover claim is $500 per week which is less than the $812.60 national minimum wage amount, WorkCover would still pay you based on the calculated $500.

Review your wages

It’s a good idea to do a review of your PIAWE early on in the life of your WorkCover matter to ensure it is accurate.

Part of this review can also involve reviewing your wages paid to your by your employer to ensure you’re being paid at the correct rate.

If you’re covered by an award or other agreement, you should check and see whether you’re being paid in accordance with those.

If you’re not, you should speak to your employer and/or obtain legal advice.

If you have been getting paid at a lesser amount than what you should have been getting paid, then it’s possible to have your wages adjusted which in turn should result in your weekly payment amount being adjusted.

Anything that you should have received by way of WorkCover payments can be back paid to you by the WorkCover insurer in the form of a lump sum.

Conclusion

WorkCover does not have minimum wages that they pay.

They also do not take into account the take into account the national minimum wage or minimum wages referred to in an award or other agreement.

Weekly payments are based on a person’s pre injury average weekly earnings (PIAWE).

WorkCover will pay weekly payments solely based on a person’s PIAWE amount.