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Case Study (D) - WorkCover NSW Injury Management/Cost Savings
WorkCover NSW posted example of how proper Injury Management can save employers money
Calculations:
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35 year old process industry worker
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Major knee injury requiring reconstruction surgery
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Slow recovery over next 6 months
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Off work for 16 weeks
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Now fit for suitable duties
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Normal pay rate $500 p/w (award rate)
|
No Rehabilitation |
With Rehabilitation |
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Section 36 |
Section 36 |
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|
16 weeks @ $500 per week |
= $ 8,000.00 |
16 weeks @ $500 per week |
= $ 8,000.00 |
|
No suitable duties available |
Suitable duties supplied |
||
|
Remains off work and seeks alternative Employment. Therefore entitled to Section 38 benefits. |
Gradual return to full duties over 6 month's 50% loss of income over this time frame. Therefore entitled to makeup pay under S40. |
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Section 38 |
Section 40 make-up pay |
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10 wks @ $500.00 pw |
=$ 5,000.00 |
26 wks @ $263.60 pw |
=$ 6,853.60 |
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42 wks @ $400.00 pw |
=$ 16,800.00 |
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52 wks @ $263.30 pw |
=$ 13,691.60 |
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(Sec 40 @ maximum) |
|||
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Future compensation |
No future compensation |
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140 wks @ $263.30 pw |
=$36,862.00 |
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Medical/hospital/rehab |
= $20,000.00 |
Medical/hospital/rehab |
=$20,000.00 |
|
Investigations |
= $ 3,000.00 |
Investigations |
=$ 3,000.00 |
|
TOTAL |
=$103,353.60 |
TOTAL |
=$37,853.60 |
|
COST SAVINGS= $65,500.00 |
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*Extract from WorkCover Rehabilitation Coordination Training Course
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