How does returning to work part-time affect weekly payments?

During the first entitlement period, a worker with current work capacity is generally paid the lesser of 95 per cent of PIAWE less current weekly earnings, or the indexed maximum weekly compensation amount less current weekly earnings. A worker with no current work capacity is generally paid the lesser of 95 per cent of PIAWE and the maximum.

This is why a part-time wage ordinarily reduces the compensation top-up rather than ending the claim. The insurer must still use the correct PIAWE, gross earnings for the same week and current maximum. The maximum is indexed and should be taken from the current SIRA benefits guide, not copied from an old letter or online example.

During the second entitlement period, a worker who has returned to work for at least 15 hours per week is generally assessed at the lesser of 95 per cent of PIAWE less current weekly earnings, or the maximum less current weekly earnings. A worker with current work capacity who works less than 15 hours is generally assessed at the lesser of 80 per cent of PIAWE less current weekly earnings, or the maximum less current weekly earnings.

Hours should be proved week by week from rosters and timesheets. Paid leave, a cancelled shift, overtime or an irregular roster can affect the factual record and should not be averaged casually. The rule applied may also differ for exempt workers or a post-1 July 2026 primary psychological injury, which require specialist review.

After 130 aggregate paid or payable weeks, section 38 imposes additional continuation requirements for ordinary physical-injury claims. A worker with current capacity generally needs an actual return to paid employment of at least 15 hours per week at or above the indexed earnings threshold and must be assessed as indefinitely incapable of increasing that amount. The worker must apply in writing for continuation within the statutory framework.

Primary psychological injuries first notified under the post-1 July 2026 framework use sections 39A and 39B instead of assuming the physical-injury continuation rules. Before week 130, request the insurer’s aggregate week count, current injury classification, WPI position and intended calculation.

A worker may earn a small amount because the employer offers only a few suitable hours. The insurer may argue that the worker could earn more in other suitable employment. Conversely, a worker may temporarily work extra hours but remain medically restricted. These situations require more than inserting the payslip into a formula.

A work capacity decision should identify the worker’s functional, vocational and medical circumstances and the suitable employment relied on. If the insurer substitutes an assessed earning ability for actual earnings, read the decision separately from the arithmetic and use the review pathway stated in the notice.

Assume PIAWE is $1,000 and gross current weekly earnings from the part-time return are $400. Also assume the indexed maximum is not the lower limb of the formula and there are no other adjustments. In the first 13 weeks, 95 per cent of PIAWE is $950; subtracting $400 gives an illustrative top-up of $550.

During weeks 14 to 130, the same illustrative $550 result can apply if the worker is working at least 15 hours. If the worker has current capacity but works less than 15 hours, 80 per cent of $1,000 is $800; subtracting $400 gives $400. The example explains the arithmetic only. It is not an entitlement estimate, and actual calculations require the current indexed maximum, injury type, entitlement period, capacity decision and lawful earnings inputs.

The percentages are applied to PIAWE before current weekly earnings are deducted. Do not subtract earnings from PIAWE first and then apply the percentage.

• Current and earlier Certificates of Capacity showing hours, restrictions and review dates.
• Written suitable-duties or return-to-work plan and every version of the agreed roster.
• Timesheets and gross payslips for each week, including leave and payroll corrections.
• The PIAWE decision, calculation worksheet and any indexation notice.
• Insurer weekly-payment remittances and a week-by-week payment history.
• Work capacity decision, vocational assessment and suitable-employment material, if issued.
• Treatment notes explaining whether increased hours were sustained and medically appropriate.

Errors include using net rather than gross current earnings, applying the wrong entitlement period, treating a temporary payroll spike as ordinary weekly earnings, overlooking a second job, using an outdated maximum, failing to index PIAWE, counting leave or hours incorrectly, or assuming actual earnings equal capacity to earn.

A payment may also be late because payroll and the insurer have not reconciled the top-up. That is a processing problem, not necessarily a formal work capacity or liability decision. Ask for the legal decision and the calculation as separate documents.

• Tell the insurer about the return, gross earnings and any other employment accurately and promptly.
• Ask the employer to confirm duties, hours, pay rate and whether the arrangement is temporary or ongoing.
• Request the insurer’s revised formula, PIAWE, entitlement period, maximum and current-earnings input.
• Correct roster, payslip or certificate errors in writing and retain the corrected version.
• Use the work capacity review or PIC pathway stated in a formal notice rather than treating every calculation issue as payroll delay.

A cleaner returns for three four-hour shifts under a Certificate of Capacity. The employer later offers a fourth shift, but the treating practitioner has not increased the certified hours. The insurer’s new remittance appears to assume 20 hours and a higher earning ability. The useful response is a week-by-week table comparing certification, roster, actual hours, gross wages and the insurer calculation, followed by a request for reasons for any assessed earning capacity.

This example shows how to organise evidence. It does not establish that the worker can refuse suitable work, that the certificate controls the legal capacity decision, or that a particular weekly amount is payable.