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One of the first questions people ask after a workplace injury is, “How much will my WorkCover compensation be?” The answer depends on your individual circumstances, including how much you were earning before your injury, how long you’ve been receiving weekly payments, and whether you have the capacity to return to work.
Weekly WorkCover payments are designed to replace part of your lost income while you recover. They are calculated using your Pre-Injury Average Weekly Earnings (PIAWE) and are subject to maximum statutory limits.
PIAWE in Victoria
Pre-injury average weekly earnings is usually an average of your gross earnings over the 52 weeks before your work-related injury. Your WorkCover insurer takes your total ordinary earnings for that period and divides by 52 to arrive at a single weekly figure, then that drives every weekly payment you receive.
WorkCover weekly payments are a percentage of PIAWE: generally 95% in the first 13 weeks, then 80% from week 14 up to 130 weeks. Those amounts are adjusted for any current work capacity you have (meaning earnings from suitable duties) and are subject to a statutory maximum cap. Specific weekly payment details can also depend on local regulations and practices, as workers compensation systems in Australia are managed at the state and territory level.
Overtime and shift allowances can be included in PIAWE, but the rules differ depending on your injury date and how long you have been on payments. Eligibility for WorkCover payments requires an accepted compensation claim, a Certificate of Capacity from your treating doctor certifying reduced work capacity, and timely injury reporting. Weekly payments are designed to support employees during recovery from work related injuries. If anything looks wrong with your figure, Brave Legal is a Melbourne WorkCover law firm that can check whether your PIAWE and weekly payments have been calculated correctly.
What PIAWE Means and Why It Matters
Pre-injury average weekly earnings is the legal measure of what you were earning before you were hurt. It sets the dollar figure from which every WorkCover weekly payment in Victoria is derived.
PIAWE uses gross earnings – your before-tax pay – not net (take-home) pay. It usually excludes non-cash benefits such as private health insurance, personal use of a company car, or a phone plan paid by your employer. The focus is on your ordinary pattern of earnings prior to the injury date, capturing what you would have continued to earn before for the injury.
An incorrect PIAWE can understate your payments by hundreds of dollars per week, particularly if you are a worker with variable hours, allowances, or commissions. Your WorkSafe agent must issue a written decision stating the calculated PIAWE amount and explaining how it will be used for weekly payments. If that decision is wrong on its face, you have the right to challenge it.
The Reference Period Used to Calculate PIAWE
PIAWE is built on a relevant period of earnings before the injury – not always exactly 52 weeks, though that is the most common baseline.
If you have been continuously employed by the same employer for at least 52 weeks before the injury, your PIAWE is calculated from the total gross earnings in those 52 weeks divided by 52. For example, if your gross earnings over that year totaled $65,000, your PIAWE would be $65,000 ÷ 52 = $1,250 per week.
If you worked for your employer for less than 52 weeks, the calculation uses your total earnings from the start of employment to the injury date, divided by the number of weeks actually worked. Periods of unpaid leave or unpaid stand-downs where no work was offered are often excluded from the denominator so they do not artificially lower the average.
PIAWE is normally based on earnings from the employer (or employers) who are part of the WorkCover claim. You cannot usually combine unrelated second jobs held with a different employer into one claim’s PIAWE.
Special rules may apply to apprentices, trainees, or workers injured shortly after a promotion. Where your pay increased significantly before the injury – for instance, because of a new role or an enterprise bargaining agreement – the insurer may need to adjust the reference period to reflect those higher earnings.
What’s Included in PIAWE (Overtime, Shift Loading, Allowances, Commissions)
Ordinary earnings for PIAWE can include more than just your worker’s base rate of hourly pay. Common inclusions are:
- Base wages or salary
- Regular overtime (for injuries after October 26, 2018, overtime is included in PIAWE)
- Penalty rates and piece rates
- Shift allowances and industry allowances
- Rostered extra hours that formed part of your usual pattern
- Commissions where they are a regular component of remuneration
- Superannuation contributions may be relevant in some contexts
The insurer will typically total all qualifying average weekly earnings PIAWE components for the relevant period, then divide by 52 (or the applicable number of weeks).
Bonuses and commissions are included when they form part of normal remuneration – for example, regular sales commissions. One-off sign-on bonuses, discretionary bonuses unrelated to weekly work, or education fees reimbursements are generally excluded.
Other common exclusions: non-cash benefits, reimbursement of expenses, travel allowance amounts that merely repay costs, and private health insurance contributions.
How Weekly Payments Step Down: 95% Then 80%
WorkCover payments are not a flat 100% of wages. Weekly payment rates differ depending on the duration of the compensation period, and they change at key milestones.
First entitlement period (weeks 1–13):
- An injured worker with no current work capacity can receive up to 95% of PIAWE, subject to the statutory maximum cap. Payments are 95% of PIAWE for the first 13 weeks.
- If you have some capacity and are doing a partial return to suitable duties earning $500 per week, your payment = 95% of PIAWE minus your current earnings.
Second entitlement period (weeks 14–130):
- Payments drop to 80% of PIAWE. After 13 weeks, this lower rate applies.
- If working, payments become 80% of PIAWE minus 80% of current weekly earnings. WorkCover payments are adjusted based on current earnings, and returning to work can reduce payments significantly.
- Workers’ compensation schemes include stipulations for continuous rehabilitation cooperation by recipients during this period.
Worked example (PIAWE = $1,200/week, no capacity):
Period | Rate | Weekly payment |
Weeks 1–13 | 95% | $1,140 |
Weeks 14–130 | 80% | $960 |
Weekly payments can stop after 130 weeks unless you meet strict criteria – generally, no current work capacity likely to continue indefinitely and a whole person impairment of 21% or more. A Certificate of Capacity must be provided throughout to claim weekly payments.
Overtime and shift allowances may also stop being counted in the PIAWE figure used for payments after the first 52 weeks, which can cause a further drop separate from the percentage step-down.
Overtime, Shift Allowances and the 52-Week Rule
To protect yourself, keep copies of rosters, overtime approvals, and payslips showing penalty rates. If your insurer’s records overlook these when they first calculate PIAWE, those documents become critical evidence. The significant changes to the WorkCover scheme introduced in recent years make it especially important to confirm which rules apply to your circumstances.
The Statutory Maximum, Indexation and High Earners
The statutory maximum is the legal cap on WorkCover weekly payments, tied to the State’s average weekly earnings. Maximum payment limits apply and can vary across different jurisdictions, but in Victoria the cap is set by WorkSafe.
From 1 July 2026 it rises to approximately $3,000 per week. Even if your PIAWE is very high, your payments will not exceed this cap – whether at 95% in the first entitlement period or 80% later. For example, a worker with a PIAWE of $4,000 per week would calculate 95% as $3,800, but the actual payment is capped at $2,930 (using the July 2025 figure).
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