Is Superannuation Paid On Workers’ Compensation?

Q: Does my employer have to pay superannuation while I'm receiving workers' compensation?

In most cases, no. Under Australian employment law, workers' compensation payments are excluded from ordinary time earnings (OTE), which means employers are generally not required to pay superannuation while you are receiving workers' compensation. However, some modern awards, enterprise agreements, or employment contracts may provide more generous entitlements. You should check your specific agreement or seek guidance from the Fair Work Ombudsman or your HR department.

Q: Will I lose my superannuation contributions permanently if I'm off work due to injury?

Not necessarily. While employers usually stop paying superannuation during periods of incapacity, lost super contributions are often considered when assessing your workers' compensation or common law claim. Compensation calculations typically factor in the superannuation rate your employer paid before your injury, helping to protect your long-term retirement savings.

Q: What happens to my superannuation if I make a partial return to work?

If you make a partial return to work, your employer must pay superannuation on the hours you actually work, as those earnings are considered ordinary time earnings. You may continue to receive workers' compensation payments for the hours you are unable to work due to your injury. This allows you to maintain some level of superannuation contributions while receiving compensation for reduced work capacity.

Q: At what rate will lost superannuation be calculated in my compensation claim?

Lost superannuation is usually calculated based on your employer’s superannuation contribution rate prior to your injury. As of 1 July 2025, the standard Superannuation Guarantee rate in Australia is 12%. If your employer contributed more than the minimum rate through salary sacrifice or other arrangements, compensation calculations generally reflect that higher rate when assessing both past and future superannuation losses.

Q: Can you claim superannuation contributions in other types of injury compensation cases?

Yes, although superannuation is not paid directly during periods of incapacity, compensation claims arising from motor vehicle accidents, medical negligence, or public liability incidents commonly include recovery for lost superannuation as part of overall economic loss. The purpose of these claims is to place you, as closely as possible, in the financial position you would have been in had the injury not occurred.

When you’re unable to work due to a workplace injury and are receiving workers’ compensation in Western Australia, your employer typically does not make compulsory superannuation contributions during this period. Workers’ compensation payments are classified differently from ordinary time earnings under employment law, which means they fall outside the standard superannuation calculation framework. However, assessors can factor the financial impact of these lost superannuation contributions into your overall compensation entitlement when they calculate damages. You need to understand how workers’ compensation interacts with superannuation to manage your long-term financial planning during recovery. This article explains the relationship between these two systems, clarifies what you can expect regarding retirement savings during incapacity, and outlines circumstances where industry awards or partial return-to-work arrangements may create different superannuation obligations. The Western Australian workers’ compensation system aims to support injured workers while they recover, and knowing your entitlements helps you make informed decisions about your financial future.

Disclaimer: This article contains general information only and is not intended to be legal advice. It does not take into account your personal circumstances. Mediation and personal injury outcomes vary widely, and no guarantee of success is made or implied. You should obtain independent legal advice before making decisions about any potential claim.

Understanding Superannuation and Workers’ Compensation

Your employer generally will not pay your compulsory superannuation contributions if you receive workers’ compensation payments because you cannot work due to a workplace injury. This applies unless you have a specific agreement in place with your employer. Workers’ compensation insurers do not classify compensation payments as ordinary time earnings (OTE) in the same way they classify your regular salary. Under standard employment arrangements, employers calculate superannuation contributions based on OTE, which typically excludes compensation payments made through insurance schemes.

However, you should understand that your compensation claim may account for lost superannuation contributions when the assessor calculates your entitlement to damages. This means that while your employer may not pay ongoing super contributions during your incapacity period, the assessor can consider the financial impact of these lost contributions as part of your overall compensation entitlement. Workers in Western Australia should be aware of how superannuation and compensation interact to better understand the potential impact on their long-term retirement savings during periods of workplace injury.

Workers need to understand the relationship between workers’ compensation and superannuation for financial planning during recovery. The Western Australian workers’ compensation system provides support to injured workers who cannot perform their usual duties. If you have questions about your specific circumstances, contact appropriate sources to learn about your entitlements under Western Australian workers’ compensation legislation.

Work-Related Injury or Illness Cover in Western Australia

WorkCover WA or your self-insured employer administers workers’ compensation for work-related injuries or illnesses in Western Australia. This system covers wage replacement, medical treatment costs, rehabilitation services, and associated expenses arising from workplace injuries or illnesses. WorkCover WA calculates payment amounts according to the Workers’ Compensation and Injury Management Act 1981. The system deposits these payments directly into your nominated bank account, calculating them as a specified percentage of your average earnings from the previous 12-month period. The scheme aims to support injured workers during their recovery while helping them return to suitable employment when medically cleared. Understanding your entitlements under this system can help you access appropriate support if you experience a workplace injury.

Superannuation and Alternative Injury Claims

Superannuation contributions are similarly not included in other types of claims, such as motor vehicle accidents, medical negligence matters, or public liability incidents involving slips and falls. Regardless of the nature of your claim, any compensation outcome seeks to address financial losses stemming from your injury or illness. This may include recovery for missed superannuation contributions and lost earnings during your incapacitation period. The compensation framework aims to restore your financial position as closely as possible to where it would have been without the incident. Each claim type requires distinct processes and requirements you must follow. If you’re uncertain about your entitlements or the claims process, consult a legal professional who understands Western Australian legislation.

Why Workers’ Comp Doesn’t Include Superannuation Contributions

Superannuation is calculated and paid on an employee’s ordinary time earnings (OTE). Workers’ compensation payments are not classified as salary or wages under employment law, which means they fall outside the definition of OTE. These payments come from the workers’ compensation insurer rather than directly from the employer, so employers have no legal requirement to make superannuation contributions during this period. Understanding this distinction is important for workers navigating the compensation system. However, the court will consider any loss of superannuation contributions during your time off work when calculating damages. This lost superannuation will form part of any settlement or court-awarded compensation you may receive.

Determining Superannuation Loss in Your Claim

Your compensation calculation will be based on the superannuation contribution rate your employer was paying before your injury. The Superannuation Guarantee (SG) rate in Australia currently sits at 12% as of 1 July 2025. Your compensation claim will factor in the 12% superannuation contribution your employer was making, covering both past wage losses and future anticipated income reductions. If your employer was contributing at a higher percentage through salary sacrifice arrangements or other agreements, your compensation calculations will reflect this increased rate. These calculations help ensure you are not financially disadvantaged in your retirement savings due to your workplace injury. Your legal representatives can assist in accurately determining these figures based on your employment history and contribution records.

Recognition and Authorized Arrangements

Certain industry awards or enterprise agreements may include provisions requiring superannuation payments to continue while employees receive workers’ compensation. These arrangements vary significantly across different industries and workplaces. To determine whether your specific award or agreement includes such provisions, you can search the Fair Work Ombudsman website for your relevant award or agreement. Alternatively, you can approach your employer’s human resources department directly to request clarification on this matter. Having this information helps you understand your full entitlements during your recovery period.

Combined Payment Structures

When you make a partial return to work, superannuation becomes payable on the hours you actually work for your employer. These worked hours are classified as ordinary time earnings under employment law. During this period, you will continue receiving workers’ compensation payments from WorkCover for the hours you remain unable to work due to your injury. This hybrid arrangement ensures you maintain some superannuation contributions while still receiving support for your reduced capacity. The combination of partial work earnings and ongoing compensation support can help facilitate a gradual return to full employment.

Conclusion

Understanding how workers’ compensation affects superannuation protects your long-term finances during workplace injury recovery. While employers typically don’t pay super on workers’ compensation, assessors can include these lost contributions in your overall compensation entitlement. This distinction exists because employment law does not classify compensation payments as ordinary time earnings. However, certain industry awards or enterprise agreements may include provisions requiring continued superannuation payments during incapacity periods. If you’re making a partial return to work, superannuation becomes payable on hours actually worked. Reviewing your specific award or agreement can clarify your entitlements. Seeking guidance from qualified legal professionals who understand Western Australian workers’ compensation legislation can help you navigate these complex arrangements and ensure you receive appropriate compensation that accounts for all financial impacts of your workplace injury.

Disclaimer: This article contains general information only and is not intended to be legal advice. It does not take into account your personal circumstances. Mediation and personal injury outcomes vary widely, and make no guarantee of success. You should obtain independent legal advice before making decisions about any potential claim.

FAQs

Does my employer have to pay superannuation while I’m receiving workers’ compensation?

Employment law excludes workers’ compensation from ordinary time earnings (OTE), eliminating the superannuation contribution requirement. Some awards or agreements may override this. Verify your situation through the Fair Work Ombudsman or contact HR.

Will I lose my superannuation contributions permanently if I’m off work due to injury?

Not necessarily. While your employer typically stops super contributions during incapacity, the court factors these losses into your compensation assessment. Your calculation includes the super rate your employer paid pre-injury, protecting your retirement savings.

What happens to my superannuation if I make a partial return to work?

When you make a partial return to work, your employer pays superannuation on the hours you actually work, as these count as ordinary time earnings. During this period, you’ll continue receiving workers’ compensation for the hours you can’t work due to your injury. This arrangement ensures you maintain some super contributions while receiving compensation for your reduced capacity.

At what rate will lost superannuation be calculated in my compensation claim?

Your employer’s superannuation contribution rate before your injury determines your compensation calculation. As of 1 July 2025, the standard Superannuation Guarantee rate in Australia stands at 12%. If your employer contributed at a higher percentage through salary sacrifice arrangements or other agreements, compensation calculations will reflect this increased rate for both past wage losses and future anticipated income reductions.

Can you claim superannuation contributions in other types of injury compensation cases?

No, motor vehicle accidents, medical negligence, and public liability compensation also exclude superannuation contributions. However, compensation addresses your financial losses from injury, including recovery for missed super contributions and lost earnings during incapacity. The framework aims to restore your financial position to where it would have been without the incident.

Rebecca Sorgiovanni

Rebecca Sorgiovanni is the Director of Soul Legal, a trusted Perth-based injury compensation lawyer with over two decades of experience representing injured clients in complex litigation and tribunals across Western Australia.

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