Payout overview
Psychological injury workers compensation in Australia covers:
- Weekly benefits while certified unfit (typically 95% of pre-injury earnings first 13 weeks, 80% thereafter)
- Medical and treatment costs — psychiatrist, psychologist, medications, hospitalisation, residential treatment
- Lump-sum impairment compensation based on PIRS rating
- Common-law damages in serious cases where employer negligence is established and impairment thresholds are crossed
- General protections compensation in cases involving adverse action / dismissal following the claim
PIRS — what it measures and how it drives payouts
The Psychiatric Impairment Rating Scale assesses 6 areas of function:
- Self-care and personal hygiene
- Social and recreational activities
- Travel
- Social functioning (relationships)
- Concentration, persistence and pace
- Employability
Each is rated 1–5, then combined and converted to a whole-person psychiatric impairment percentage. Most ratings fall between 5% and 30%. Catastrophic mental health conditions can rate higher.
PIRS percentages are mapped to lump-sum amounts in each state's scheme — typically:
- 0–10% PIRS: $5,000 – $50,000 lump sum
- 11–20% PIRS: $50,000 – $150,000 lump sum
- 21–30% PIRS: $150,000 – $300,000 lump sum (gateway for common law in VIC)
- 31%+ PIRS: $300,000+ lump sum, plus common-law access in most states
Indicative ranges by clinical condition
| Condition | Combined statutory + common-law range |
|---|---|
| Adjustment disorder, full recovery | $15,000 – $60,000 |
| Major depression, treated, residual symptoms | $50,000 – $180,000 |
| PTSD with treatment response | $80,000 – $250,000 |
| Treatment-resistant major depression | $150,000 – $400,000+ |
| Severe complex PTSD | $200,000 – $700,000+ |
| Catastrophic psychiatric injury | $500,000 – $1,500,000+ |
Workplace bullying-driven claims regularly fall in the $80,000 – $400,000 range; PTSD claims for first responders with presumptive provisions commonly reach $200,000 – $700,000.
Variation by state scheme
- NSW — strong scheme with IRO free legal funding for disputes. Lump sums driven by PIRS, common-law over 15% WPI.
- VIC — lump sums driven by PIRS; common-law requires "serious injury" gateway (often 30%+ psychiatric WPI).
- QLD — strict "major significant contributing factor" causation but easier common-law access (no WPI threshold).
- WA — 15% WPI threshold for common law rarely met for stand-alone psych claims.
What multiplies the payout
- Higher PIRS rating — direct effect on lump sum
- Common-law access — typically 2-3x statutory recovery
- Younger age, higher pre-injury earnings — larger economic loss component
- TPD claim through super — for permanent psychiatric incapacity, your super fund may pay $80,000 – $500,000 separately. See our TPD guide.
- General protections claim where adverse action followed — separate compensation pathway