Increase Weekly Payments

How long should injured workers receive payments?
Currently, injured workers' weekly benefits are cut after 130 weeks, unless they are able to demonstrate that they have "no work capacity" for any employment and that this incapacity is likely to continue indefinitely.

The VTHC says the period of entitlement to weekly benefits should be increased to 260 weeks, or five years.

How much should injured workers get?
The Victorian system of weekly payments is one of the worst in Australia. The Hanks Review refused to examine the payments regime and made only one slight improvement.

Currently workers get 95% of pre-injury average weekly earnings (PIAWE) including overtime for 13 weeks, then 75% up to 26 weeks, then 75% (less overtime) until 130 weeks. The only change that Hanks has recommended is that after 13 weeks the percentage increases to 80%.

The VTHC says that there should be an increase in the level of weekly payments to 100% of PIAWE for the first 12 months, then 80% for the duration of the entitlement period.


How should the payments be calculated?
The current manner, in which PIAWE is calculated whilst including piece work, does not include allowances, commissions, bonuses, salary packaging etc. This means that effective rates of weekly payments often fall well below the current 95% and 75% rates in the Act.

The VTHC says the calculation should be based upon "normal weekly earnings" that incorporates pay structures, including overtime, shift penalties and all other benefits and not based solely on ordinary rates of pay for normal hours worked.

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