Improve claims performance through early intervention to minimise impact on premiums
Tackling Premium Pressures: Why Early Return to Work Is Essential
In NSW, workplace injuries can do more than just interrupt day-to-day operations—they can lead to significant increases in workers’ compensation premiums. For Category 1 employers (those with a basic tariff premium exceeding $30,000), premium costs are directly impacted by claims performance.
The Financial Impact of Workplace Injuries in NSW
Premiums are calculated by iCare, the workers’ compensation insurer in NSW, with a strong emphasis on each employer’s claims history. When an injured worker remains off work and is paid weekly compensation, those costs contribute to your claims’ performance rating, which then influences your premium.
The more time lost, the greater the premium impact
Ineffective return to work outcomes may result in premium penalties
Extended claims carry more weight in future premium calculations, resulting in long-term financial consequences.
The Strategic Advantage of Early Return to Work
Whilst supporting an early and suitable return to work promotes employee wellbeing recovery — it’s also a key lever for controlling premium costs. Benefits include:
Lower claim expenses: Returning employees sooner reduces ongoing compensation or wage payments
Stabilised premiums: Effective injury management improves claims performance and limits future increases in premiums
Regulatory alignment: NSW employers are legally required to maintain a Return to Work Program, and those who act proactively often enjoy more efficient claims processes and insurer collaboration.
What Category 1 Employers Can Do
To drive better outcomes and reduce premium exposure, employers should:
Maintain and regularly update a compliant Return to Work Program aligned with SIRA NSW guidance
Identify and offer suitable duties that accommodate recovery
Actively provide support to the injured worker
Maintain regular, effective communication with all stakeholders to ensure claims and recovery are progressing as promptly as possible
Appoint a qualified Return to Work Coordinator (mandated for Category 1 employers)
