If you are receiving workers’ compensation payments because you are unable to work due to injuring yourself at work, your employer generally won’t pay your compulsory superannuation contributions. That is, unless you have a special agreement in place with your employer. The reason for this is compensation payments from a workers compensation insurer are not considered ordinary time earnings (OTE) like your salary is. The good news is that your compensation claim will account for lost super contributions when your entitlement to damages is calculated.
Work-related injury or illness compensation in Queensland
In Queensland, work-related injury or illness compensation is managed by WorkCover, or the company you’re employed at if they’re self-insured. This covers lost wages, medical expenses, rehabilitation, and other costs resulting from your injury or illness. WorkCover Queensland will determine how much you’re paid based on the Workers’ Compensation and Rehabilitation Act 2003. This will go directly into your bank account as a set percentage of your prior 12-month average salary.
Superannuation and non-work-related injury claims
Superannuation is also not paid on other claims such as motor vehicle, medical negligence, or slip and fall cases for example. No matter what you’re claiming for, your compensation payout will seek to recover anything you lose due to your illness or injury—including the loss of super contributions and loss of income.
Why isn’t superannuation paid while on workers’ compensation?
Superannuation is paid on an employee’s ordinary time earnings (OTE). Since compensation payments are not technically salary or wages, it is not considered OTE. It’s not paid by the employer and therefore an employer has no legal obligation to pay the superannuation contributions. However, as we’ve mentioned, loss of superannuation contributions will be factored into the damages claimed and will be part of any ultimate settlement payout.
Calculating loss of superannuation for your claim
Your compensation will be based on the rate of superannuation contribution that is being made by your employer. For example, the Superannuation Guarantee (SG) rate in Australia is 12% (as of 1 July 2025). So, if you’re receiving 12% superannuation contributions from your employer, this will be taken into account in your compensation claim both in respect of past loss of wages, and future anticipated loss of income. If your superannuation contribution rate is at a higher percentage this will be reflected in your compensation claim calculations.
Awards and registered agreements
Some award or enterprise agreements may specify that Superannuation should be paid to employees while on workers’ compensation. To find out if your agreement or award pays superannuation, search on the Fair Work website. You can also contact your employer directly to request this information.
Hybrid payment arrangements
If you partially return to work, super is payable on the hours you work with your employer. That’s because these are considered OTE. You will also continue to receive compensation from WorkCover for the hours you’re still unable to work.
Are you thinking about making a claim for a work-related injury or illness? Get in touch with our workers’ compensation lawyers for a free case review.