Employer claims excess
If a worker is injured in your workplace and needs time off work to recover, you may need to pay an employer excess if their workers’ compensation claim is accepted.
WorkCover are here to help you understand what the excess is, how it’s calculated and what you need to do.
When a worker is injured, an excess may apply
An employer excess is similar to the excess you pay on any other insurance policy.
If one of your workers makes a claim, you’ll need to pay an excess when:
- they have time off work because of their injury, and
- WorkCover accept their claim (sometimes called a ‘time loss claim’).
You’ll pay this excess directly to your worker as their first weekly compensation payment. WorkCover don’t pay the worker during this period.
WorkCover will tell you if you need to pay an excess
WorkCover also tell you:
- when to pay
- how much to pay.
The excess is capped and based on weekly compensation
The amount you pay is limited.
The excess is the lower of:
- the worker’s weekly compensation amount (usually 100% of the award rate or 85% of normal weekly earnings, whichever is higher), or
- 100% of Queensland full-time adult ordinary time earnings (QOTE).
What you must do as an employer
If an excess applies, you must:
- pay the excess directly to the worker (WorkCover will tell you how much to pay)
- pay within 10 business days of being notified.
If you don’t pay on time
WorkCover will pay your worker and recover the cost from you. A 50% penalty may also apply.
If one of your workers is injured at work, you also have responsibilities to support them while they recover.
The law explains how excess works
The employer claims excess is set out in:
- Workers’ Compensation and Rehabilitation Act 2003
- Workers’ Compensation and Rehabilitation Regulation 2025.
These laws tell WorkCover when an excess applies and how it must be calculated. They also set penalties if employers don’t pay on time.
WorkCover start by working out weekly compensation
To calculate the excess, WorkCover first need to work out the worker’s weekly compensation rate.
WorkCover do this by looking at:
- their weekly wages
- their capacity to work after the injury.
WorkCover will ask you for the worker’s wages information
This helps WorkCover calculate their weekly compensation rate.
Once WorkCover ask, you need to send the information within five business days.
You can upload it through your WorkCover Connect online account – it’s quick and easy.
Wages information can include:
- an itemised payroll report for the 12 months before the injury, showing wages, penalties and allowances
- payslips for the 12 months before the injury (or from their start date if they’ve worked for you for less than 12 months)
- other written evidence if payroll records aren’t available, such as tax invoices or bank statements.
When a worker needs time off work due to injury, we'll calculate how much to pay them in weekly compensation.
We'll need some important information from you to do this calculation.
You can upload your workers earnings documents using our secure online service.
We'll send an email with a link for you to upload this information. The claim number will be pre-filled for you.
You don't need an online account with us or any login information to use this.
Or you can use WorkCover Connect, an online account which is included as part of your policy.
You've got two options in here.
From the home page, go to ‘I want to’ and click ‘Submit workers wage payments’. That will take you through to the online lodgement. Enter the claim number.
If you'd like the claim number pre-filled for you, from the left hand navigation go to ‘Claims’, ‘Claim list’. Click on ‘Claim’, ‘Submit workers wage payments’.
Regardless of the way you submit the information, the requirements are the same and the wages submission screen looks the same.
Most fields are mandatory.
Most workers are covered by an industrial instrument, otherwise known as an award or certified agreement. We need to know if this applies to them.
There are links to the Fair Work website if you're not sure.
Now you've reached the spot to upload wage information, an itemised payroll report for each pay period for the 12 months before the date of injury is easiest to upload, but it must show each payment including wages, penalties and allowances.
You can generate this itemised report from the accounting software you use.
If you can't upload an itemised payroll report, you can upload pay slips, but this may take you longer.
You can use either the ‘choose files’ button or you can drag and drop from your computer files into the box.
Once done, complete your information at the bottom.
You'll get an email confirmation with a receipt once you've clicked submit.
You can visit our website for more information on claims and payments at worksafe.qld.gov.au.
Weekly compensation depends on the worker’s capacity for work
How WorkCover work out weekly compensation depends on if the worker:
- can’t work at all (total incapacity)
- can work reduced hours (partial incapacity)
- has a mix of both in the same week
- has more than one employer.
If a worker can’t work at all, the weekly compensation rate for the first 26 weeks is the larger of:
- 85% of the worker’s normal weekly earnings
- the amount payable under the worker’s industrial instrument or award.
If the worker is not covered by an industrial instrument, the rate is 80% of QOTE.
If a worker can do suitable duties on reduced hours, WorkCover calculate partial weekly compensation using this formula:
PC = (MC x LE) ÷ NWE
Where:
- PC is the partial weekly compensation amount
- MC is the amount that would apply for total incapacity
- LE is normal weekly earnings minus the amount you paid the worker for the reduced hours worked
- NWE is normal weekly earnings.
The partial weekly compensation amount can’t be more than the maximum compensation rate.
If the worker is doing reduced hours, you’ll also need to pay them for the hours they work.
Sometimes a worker can’t work at all for part of a week and then returns to suitable duties on reduced hours in that same week.
When this happens, WorkCover calculate weekly compensation using daily rates.
WorkCover calculate daily rates based on the worker’s normal work pattern
WorkCover start by:
- working out separate weekly rates for total and partial incapacity
- confirming the current QOTE amount.
WorkCover then look at the worker’s normal work schedule for the first seven calendar days of their incapacity, and:
- calculate a daily rate for days they couldn’t work at all
- calculate a daily rate for days they worked reduced hours.
WorkCover add the daily amounts together to get the correct weekly compensation for that week.
How this affects the excess
In these cases, the employer claims excess is the lower of:
- the weekly compensation amount worked out using daily rates, or
- QOTE.
The employer where the injury occurred pays the excess. It's limited to what that employer would normally pay the worker for their work.
If the worker’s total weekly compensation is higher, WorkCover will pay the difference.
Once WorkCover know the weekly compensation, they work out the excess
In all cases, the excess is based on both the worker's:
- capacity for work
- normal employment arrangements.
The excess is always the lower of:
- the weekly compensation amount, or
- QOTE.
Some examples of how WorkCover work out the excess
Jamie was injured on 10 July 2025 and saw a doctor on the same day.
His doctor certified that he couldn’t work for four weeks.
Jamie’s rates are
- Weekly compensation: $1,600
- QOTE (from 1 July 2025): $1,953.70.
The excess is $1,600, because it’s lower than QOTE
Jamie’s employer needs to pay $1,600 directly to him.
Julie was injured on 12 July 2025 and saw a doctor on the same day.
She was cleared to work suitable duties on reduced hours for two weeks.
Julie’s rates are
- Pay from employer for reduced hours: $600
- Normal weekly earnings: $1,500
- Weekly compensation: $1,275 (85% of normal weekly earnings)
- Award rate: $1,200
- QOTE (from 1 July 2025): $1,953.70.
WorkCover use the PC formula to work out her partial weekly compensation
PC = (MC x LE) ÷ NWE
PC = ($1,275 x ($1,500 - $600)) ÷ $1,500
PC = $765
The excess is $765, because it’s lower than QOTE
Julie’s employer needs to pay $765 directly to her.
Grant was injured on 9 July 2025 and saw a doctor on the same day.
His doctor said he:
- couldn’t work on 10 July
- could return to suitable duties for four hours per day from 11 to 18 July.
Grant’s rates are
- Weekly compensation for total incapacity: $700
- Weekly compensation for partial incapacity (using the PC formula): $350
- QOTE (from 1 July 2025): $1,953.70.
WorkCover work out the daily rate
Grant normally works five days out of seven.
He was unable to work for one day
Total daily rate = (total incapacity rate ÷ normal days) x days of total incapacity
Total daily rate = ($700 ÷ 5) x 1
Total daily rate = $140
He worked reduced hours for four days
Total daily rate = (partial incapacity rate ÷ normal days) x days of partial incapacity
Total daily rate = ($350 ÷ 5) x 4
Total daily rate = $280
Then WorkCover add those together
Weekly compensation = sum of daily rates
Weekly compensation = $140 + $280
Weekly compensation = $420
The excess is $420, because it’s lower than the QOTE
Grant’s employer needs to pay $420 directly to him.
Sarah works Monday to Friday for two different employers.
- Job A pays $500 per week
- Job B pays $300 per week.
At both jobs, her normal weekly earnings are the same as her Award rate.
Sarah is injured at Job A
Her total weekly compensation amount is $800
Only Employer A pays an excess.
The excess is $500, which is what Employer A normally pays Sarah
Employer A needs to pay $500 directly to her.
WorkCover pay the remaining $300 so Sarah gets her full weekly compensation.
Still have questions?
Contact WorkCover. They're here to help.