Quick Answer (The Core Formula)

In Victoria, WorkCover weekly payments are generally calculated using your pre-injury average weekly earnings (PIAWE) and your current work capacity.
The weekly payment rate is usually:

• First 13 weeks: up to 95% of your PIAWE (subject to a statutory maximum), minus what you’re currently earning if you’re working.
• Weeks 14 to 130: up to 80% of your PIAWE (subject to a statutory maximum), minus 80% of what you’re currently earning if you’re working.
• After 130 weeks: weekly payments only continue in certain circumstances (the rules are stricter), and the rate is generally based on 80% of your PIAWE, subject to a statutory maximum and other criteria.

The most important takeaway: your payments are not a flat “percentage of your wage forever.”
They change over time, they’re impacted by whether you return to work (even part-time), and there’s a legal cap that affects higher-income earners.

Step 1: What Is PIAWE and Why It Matters

PIAWE stands for Pre-Injury Average Weekly Earnings. It’s the figure WorkCover uses as the foundation for weekly payments.
In simple terms, it’s your “average weekly earnings” before you were injured.

How PIAWE is usually worked out

In many cases, PIAWE is based on the average of your ordinary earnings over the 52 weeks immediately before your injury.
If you’ve been with your employer less than 52 weeks, it’s typically calculated over your actual employment period.
Periods of unpaid leave (and other periods where you didn’t work) are generally not included in the calculation.

What can be included in PIAWE

Depending on your circumstances, PIAWE can include more than just your base rate:

• Ordinary hours earnings
• Some shift allowances
• Some overtime (but see the 52-week rule below)
• Some commissions or piece rates (where applicable)
• Some non-monetary benefits (in certain circumstances)

Why workers get surprised by PIAWE

Many Melbourne workers assume WorkCover looks at their “best week” or their “usual take-home pay.”
WorkCover usually uses an average (and it’s generally based on gross earnings, not the net amount hitting your bank account).
If your hours fluctuated, you had unpaid leave, or you only recently started doing overtime, your PIAWE might be lower than you expect.

Tip: If your earnings are complicated (multiple roles, variable hours, commissions), keep copies of payslips and rosters from the year before injury.
It can help if there’s a dispute about what should be counted.

Step 2: Weekly Payment Rates in Victoria (13 Weeks, 14–130, After 130)

First 13 weeks (the first entitlement period)

If you have no current work capacity (you can’t work at all), weekly payments are generally up to 95% of your PIAWE, subject to the statutory maximum.

If you have some capacity and you’re working (even reduced duties), the general approach is:
95% of your PIAWE (subject to the cap) minus your current weekly earnings.

This period is designed to support early recovery when many workers are still very limited and not earning normally.

Weeks 14 to 130 (the second entitlement period)

After the first 13 weeks, weekly payments are generally based on 80% of your PIAWE, subject to the statutory maximum.

If you’ve returned to work in any capacity, the calculation typically becomes:
80% of your PIAWE (subject to the cap) minus 80% of your current weekly earnings.

Practically, this means:
working more hours often reduces WorkCover payments, but your total income (wages + WorkCover top-up) may increase overall.
The aim is to encourage safe return-to-work without leaving you financially worse off (within the scheme’s limits).

After 130 weeks

Once a claim reaches 130 weeks of weekly payments paid or payable, the continuation rules become much tighter.
In many cases, weekly payments can stop unless specific criteria are met.
If weekly payments do continue, the rate is generally based on 80% of your PIAWE (subject to the cap), with different rules depending on whether you have no capacity or some capacity and meet the relevant thresholds.

The practical message: if you’re heading toward long-term weekly payments, it’s worth planning early.
The “130-week stage” is one of the most common points where workers feel blindsided by reviews and changes.

Step 3: The Statutory Maximum (Cap) — Why Some People Don’t Get 95%

Even if the rate is 95% (or 80%), there’s a legal ceiling called the statutory maximum.
This matters most if you were a higher income earner before the injury.

What is the cap?

For many claims (particularly those made on or after 5 April 2010), weekly payments are capped at a statutory maximum that is indexed.
As at 1 July 2025, the statutory maximum is stated as $2,930 per week for the post-2010 maximum, and it’s indexed annually.

What the cap means in plain language

If 95% of your PIAWE is above the maximum, you don’t get 95% of your PIAWE — you get the maximum.
Same for 80%.

Example: If your PIAWE was $3,600 per week, then:

• 95% of $3,600 = $3,420 (but capped at the statutory maximum)
• 80% of $3,600 = $2,880 (may still be capped depending on the applicable maximum)

So a worker on higher earnings can experience a bigger drop compared to their normal wage, even in the first 13 weeks.

Important: claims made before certain dates can have different caps. If your injury date is older, or your claim has unusual timing, it’s worth checking the applicable maximum with your agent or getting advice.

If You Can Do Some Work: How Partial Return-to-Work Payments Are Calculated

Many injured workers in Melbourne aren’t “all or nothing.” You might be able to work:

• shorter hours,
• lighter duties,
• different tasks, or
• in a new role while you recover.

When you have a current work capacity, weekly payments usually become a top-up designed to partially bridge the gap between your pre-injury earnings and what you can earn now.

Why your weekly payment changes when you work

The scheme generally reduces payments in proportion to your earnings (and after 13 weeks it uses an 80% factor).
That’s why the formula includes a subtraction:

• Weeks 1–13: payment based on 95% PIAWE, then subtract your current weekly earnings
• Weeks 14–130: payment based on 80% PIAWE, then subtract 80% of your current weekly earnings

Keep your payslips and track your hours

Partial return-to-work calculations rely on accurate wage information.
If your hours vary week to week, the top-up can vary too.
Keep a simple file with:

• payslips,
• rosters,
• any return-to-work plans,
• and your certificates of capacity.

Overtime, Shift Allowances, Casual Loading and Bonuses

Overtime and shift allowances can be time-limited

A big “gotcha” for many workers is that overtime or shift allowance amounts included in PIAWE may stop being included after 52 weeks of weekly payments.
That can reduce your weekly payment amount even if your injury hasn’t changed.

Casual workers

Casual workers can be eligible for WorkCover, but casual earnings patterns can make PIAWE tricky.
If your shifts fluctuated heavily, your average can be lower than your “good weeks.”
If you think your PIAWE has been calculated incorrectly, it’s worth getting it reviewed early rather than hoping it fixes itself.

Bonuses, commissions, and variable pay

If your pay included commissions or bonuses, the key question is often whether the earnings are part of “ordinary earnings” for the purpose of PIAWE and how they’re averaged.
This is where good documentation (payslips, commission statements, employment contract) can make a difference.

Worked Examples (Realistic Numbers)

Example 1: No capacity, PIAWE $1,200/week

Weeks 1–13: 95% of $1,200 = $1,140/week (subject to any cap; in this example the cap doesn’t apply).

Weeks 14–130: 80% of $1,200 = $960/week.

Example 2: Partial return to work, PIAWE $1,400/week, earning $600/week

Weeks 1–13: 95% of $1,400 = $1,330. Subtract current earnings ($600).
Estimated weekly payment: $1,330 ? $600 = $730/week.

Weeks 14–130: 80% of $1,400 = $1,120. Subtract 80% of current earnings (0.8 × $600 = $480).
Estimated weekly payment: $1,120 ? $480 = $640/week.

Total weekly income might be $600 wages + $640 WorkCover = $1,240/week (before tax considerations and depending on the specifics of how your employer pays wages).

Example 3: Higher-income worker, PIAWE $3,800/week (cap applies)

95% of $3,800 is $3,610. But weekly payments can be limited by the statutory maximum.
So even in the first 13 weeks, you may receive the maximum rather than 95% of your full PIAWE.

This is why some workers feel WorkCover “doesn’t come close” to their usual income — the cap can be a major factor.

Example 4: Overtime-heavy role, weekly payments drop after 52 weeks

If your PIAWE initially included overtime or shift allowance, the included amount may stop after 52 weeks of weekly payments.
That can reduce your weekly payment even if your medical condition is unchanged.

If you’re approaching 52 weeks and you’ve relied on overtime to make ends meet, it’s worth planning ahead financially and getting advice if the calculation seems off.

Do I Get Superannuation on WorkCover?

Some workers can receive superannuation contributions on WorkCover weekly payments, but it doesn’t automatically start from day one.
In many cases, super contributions can start after 52 weeks of weekly payments and you need to meet eligibility criteria.

If super is important for your long-term planning (and for most people, it is), ask early:

• When will super be payable in my circumstances?
• What criteria do I need to meet?
• What is the contribution based on?

Who Pays Me and How Long Does It Take?

Weekly payments are typically administered through the WorkCover process involving your employer and the WorkSafe agent.
Often your employer pays you (similar to wages) and then is reimbursed through the WorkCover system, particularly in the earlier phase.

If your claim is accepted, timelines can still vary depending on:

• how quickly your claim form and certificate of capacity are submitted,
• whether the employer forwards documents promptly,
• whether the agent needs more information,
• and whether any dispute is raised.

If you’re stuck waiting, don’t just hope it resolves itself. Follow up in writing, keep copies, and consider getting advice if delays are unreasonable.

When Your Payments Can Change (Reviews, Capacity, 130 Weeks)

Your weekly payments can change for reasons that have nothing to do with whether you’re “trying hard enough.”
Common triggers include:

• Capacity changes (your doctor certifies more hours or different duties)
• Wage changes (your current weekly earnings rise or fall)
• The 13-week step-down (95% to 80% calculation)
• The 52-week overtime/shift allowance change (where applicable)
• Independent medical or occupational assessments
• The 130-week review (stricter continuation criteria)
• Retirement age rules (weekly payments align with retirement age/pension age concepts)

Don’t ignore review letters

If you receive letters about entitlement periods, reviews, or your “current work capacity,” read them carefully.
These notices often come with timeframes and next steps, and leaving it too late can make it harder to respond effectively.

What If the Agent Cuts My Payments or Disputes My Capacity?

It’s common for disputes to revolve around one of these arguments:

• “You have more capacity than your doctor says.”
• “Your injury isn’t the cause of your current incapacity.”
• “You could earn more if you tried.”
• “Your PIAWE was calculated correctly; we won’t change it.”

If you’re dealing with a dispute, the best approach is structured and evidence-based:

1. Get your treating doctor to be specific (functional restrictions, hours, duties, and why).
2. Keep consistent reporting (symptoms, limitations, and work attempts).
3. Collect documents (payslips, rosters, certificates, return-to-work plans, messages with your employer).
4. Get advice early if you’re facing a formal reduction, termination, or rejection.

Many workers try to “handle it themselves” until it becomes urgent. If weekly payments are your main income, early advice can save months of stress.

Melbourne Checklist: How to Protect Your Weekly Payments

• Report the injury in writing as soon as possible.
• See your GP early and request clear, practical certificates of capacity.
• Avoid gaps in certificates (a gap can create a payment gap).
• Track your earnings if you return to work (keep payslips and hours).
• Keep a folder of every claim document, email, and letter.
• Plan ahead for 13 weeks, 52 weeks, and 130 weeks—these are common change points.
• Ask questions in writing if the calculation doesn’t make sense.

FAQ’s

Is WorkCover paid at 100% of my wage?

Not usually. In Victoria, weekly payments are typically based on 95% of PIAWE for the first 13 weeks, then 80% of PIAWE from week 14 to 130 (subject to caps and your current earnings if you are working).

Is PIAWE based on my take-home pay?

PIAWE is generally based on your earnings history and is typically a gross figure (not the after-tax amount that hits your bank account). If your hours varied, your PIAWE can be an average.

What if I go back to work part-time?

You may still receive weekly payments as a top-up. The payment usually reduces based on what you earn, but your total income can increase overall if you work more hours (within your restrictions).

Why did my weekly payments drop after a few months?

A common reason is the step-down after 13 weeks (from a 95% calculation to an 80% calculation). Another reason can be changes to your certified capacity, your earnings, or how overtime/allowances are treated after 52 weeks.

Is there a maximum weekly payment?

Yes. Weekly payments are subject to a statutory maximum (a cap) which is indexed. Higher-income earners can be affected by this cap even in the first 13 weeks.

What happens after 130 weeks?

Weekly payments can stop unless you meet stricter criteria. If you’re approaching this point, it’s worth getting advice early so you understand your options and how to respond to reviews.

Final Thoughts

WorkCover weekly payments in Victoria can feel confusing because the system uses formulas, averages, entitlement periods, and caps — and the rules shift at key milestones like 13 weeks, 52 weeks, and 130 weeks.
The best thing you can do is stay organised: keep your certificates up to date, track your earnings, and question calculations early if they don’t look right.

Recommendation (Melbourne, Victoria):
If you’re unsure whether your WorkCover payments have been calculated correctly, your agent is reducing payments, or you’re approaching a major review point, consider speaking with
Hymans Legal.
Phone: 1300 667 116