The Week 13 WorkCover Payment Drop Explained
At week 13, NSW WorkCover weekly payments fall from 95% to 80% of PIAWE. Here is why it happens, what it costs you in real dollars, and when the drop is being applied wrongly.
This is the single biggest financial change on a NSW WorkCover claim — and most workers find out only when the payment lands lower than expected. This guide walks you through the legislation, the numbers, and what to do.
The three things to know about week 13
If you only read three sentences, read these.
The cliff is 15% of PIAWE
Weeks 1–13 pay 95% of your pre-injury average weekly earnings under section 36. Weeks 14–130 pay 80% under section 37. That is a 15-percentage-point drop, and it lands on the first payment after week 13 ends.
Model it in the calculatorTop-ups exist if you RTW part-time
If you have returned to suitable duties, section 37 tops your earnings up to 95% of PIAWE — not 80%. So a partial return can preserve much more of your income than staying at total incapacity.
See our rehab providersA wrong drop is worth fighting
Insurers sometimes apply the drop early, calculate PIAWE wrongly, or miss the top-up for partial RTW. Our compensation lawyers review week-13 notification letters at no cost — every dollar they find compounds for the life of the claim.
Talk to our compensation lawyersWhy the drop exists and how it is calculated
Sections 36 and 37 — the legislation behind the cliff
The NSW weekly-payment system is built on two provisions of the Workers Compensation Act 1987. Section 36 governs the first 13 weeks of weekly payments and sets compensation at 95% of your pre-injury average weekly earnings (PIAWE). Section 37 governs weeks 14 to 130 and drops that rate to 80% of PIAWE, or 95% of PIAWE minus your current weekly earnings if you have returned to work on reduced hours or duties.
Both figures are capped at the SIRA maximum weekly amount, which is published by the State Insurance Regulatory Authority and indexed twice a year in April and October. The cap applies regardless of how high your actual PIAWE is — if you earned well above the cap before injury, your weekly payment is capped from day 1 and stays capped through the drop.
What the drop looks like in real dollars
For a worker on a PIAWE of $1,500 per week (below the SIRA cap), weeks 1–13 pay $1,425 per week (95%). From week 14, the same worker on total incapacity drops to $1,200 per week (80%) — a loss of $225 every week, or $11,700 over the full 12 months that follow.
If that same worker has returned to light duties at 3 days per week and is now earning $600, section 37 kicks in differently. The calculation is 95% of PIAWE minus current earnings — $1,425 minus $600 — giving a weekly payment of $825. Combined with the $600 from employment, the total weekly income is $1,425, the same as weeks 1–13.
This is why graduated return to work is usually the single most financially protective move at week 13. Our Payment Calculator runs both scenarios side by side so you can see the difference on your exact PIAWE figure.
What to do in the two weeks before the drop
The insurer typically sends a week 13 notification letter in weeks 11 or 12. It states the new weekly figure, the calculation used, and the date the new rate takes effect. Read it carefully — this is the single most common point on the claim where errors go unchallenged.
Cross-check three things. First, the PIAWE figure — does it match the 52 weeks of earnings before your injury, including overtime and allowances? Second, the start date — is the 13-week clock running from when payments started, not the date of injury? Third, the top-up logic — if you are working any hours at all, has the insurer applied section 37 top-up correctly? Our team does this review at no cost to you in the week before the cliff.
Three errors our compensation lawyers see every month
PIAWE understated in week 1
Overtime, shift allowances, a second job, on-call penalties — any of these left out of PIAWE means a lower 95% in weeks 1–13 AND a lower 80% from week 14. The error compounds. Correcting PIAWE at week 12 can lift every future payment on the claim.
See how our lawyers helpDrop applied before 13 weeks of payments
If provisional liability took 6 weeks to confirm, your 13-week clock starts later than the injury date. Insurers sometimes calendar-count from injury anyway. The fix is a PIAWE/date-of-effect recalculation letter.
Talk to our compensation lawyersSection 37 top-up missed
If you are back at work for any hours, your weekly payment should be 95% of PIAWE minus current earnings — not a flat 80% of PIAWE. This is routinely misapplied in week 14 notification letters. We review and escalate.
See our rehab providersWeek 12 is when we do our most important work
Our compensation lawyers and doctors review the week-13 notification letter before it takes effect — so if something is wrong, we fix it before a single reduced payment lands.
At week 12, our WorkCover doctor updates the Certificate of Capacity to reflect your current work capacity — this is what feeds the section 37 calculation. At the same time, our compensation lawyers review the insurer's PIAWE notice against your 52-week earnings history. If the PIAWE figure is low, we lodge a correction. If the 13-week start date is wrong, we lodge that too.
The second tool you will use at this milestone is our Payment Calculator. Put your own PIAWE and current earnings in and it shows both the week 1–13 figure and the week 14 figure, plus a partial-RTW scenario — you can see the financial value of a graduated return before committing to one.
Before and after the week 13 cliff
Week 1 on WorkCover NSW
How your PIAWE was first set, what the Certificate of Capacity does, and why week 1 decisions drive the week 13 figure.
Read the week 1 guideThe 6-month review
Week 26 is the next audit point. Insurers commonly order an independent medical examination soon after the week 13 drop — here is how to prepare.
Read the week 26 guideReturn-to-work timeline
Week 13 is also when graduated RTW typically moves from planning to action. The week-by-week RTW roadmap.
Read the RTW timelineThe week 130 WPI milestone
The 80% rate under section 37 runs to week 130. At 2.5 years, weekly payments usually end unless WPI is 21% or higher.
Read the week 130 guideAm I entitled to full pay?
Blog post. The short answer is no — 95% then 80% is the ceiling. The longer answer covers top-ups, common law and lump sums.
Read the blog postShould I claim WorkCover?
If you are reading this as a non-claimant worried about the drop, start with the reasons people hesitate — and the data on each.
Read the explainerThe payment-drop questions we answer every week
Where the claim goes from here
Week 1 — the first seven days after a claim
What should have happened before you reach week 13.
Read moreContinueWeek 26 — the entitlement review
The second critical checkpoint after the 13-week drop.
Read moreContinueCompensation lawyer — dispute the drop
If the insurer has your PIAWE wrong, we fix it at no cost to you.
Read moreContinueWorkCover payment calculator
Model the exact 95% → 80% shift against your PIAWE.
Read moreGet your week 12 review before the drop lands
Our compensation lawyers review the insurer's PIAWE notice and week-13 calculation at no cost to you. Every error caught compounds for the rest of the claim.
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