Workers' Compensation Payouts for Psychological Injury

When you have a work-related psychological injury or mental health condition (whether it’s a new mental injury or escalation of a previous condition), you may be eligible to receive weekly payments and a workers’ compensation lump sum payout.

Experienced workers’ compensation lawyers can explain if you have a valid mental health claim and your entitlements.

Free Consultation for Workers Compensation Psychological Injury Claims

Splatt Lawyers’ team of work-related injury lawyers helps Queensland employees harmed at work understand their legal rights on a 100% no-win, no-fee basis.

Get informed legal advice for psychological injury claims caused by negligence. It costs nothing to know your legal rights. Call 1800 700 125

Book free consult online

What is a Work-Related Mental Injury?

A diagnosed mental injury is a medical condition that results in significant behavioural, cognitive, or psychological dysfunction, where your job is a significant contributing factor. (as outlined in the Workers’ Compensation and Rehabilitation Act 2003 (Qld).

In Queensland, you have the legal right to a healthy and safe workplace, so when an employer’s negligence causes you harm, you have the right to seek restitution. You can be injured at work, both physically and psychologically.

Hence, when someone acquires any diagnosed psychological injury or psychiatric disorder at work, they could be eligible to claim a workers’ compensation payout.

Note: Lesser well-being issues, like work-related stress, do not qualify for a WorkCover claim, unless they lead to a diagnosed psychological injury.

More about common law psychological claims

WorkCover Mental Health Compensation Lawyers

A Splatt workers’ compensation lawyer can advise injured workers on the legal process for WorkCover claims.

100% No Win, No Fee Psychological Injury Compensation Payouts

The idea of paying legal fees might make you feel more stressed if a workplace psychological injury has affected your ability to earn an income. You have no financial risk when seeking advice from Splatt Lawyers for a workers’ compensation case. Our no-win, no-fee, no-risk guarantee means that:

  • It’s free to start.
  • There are no legal fees or costs until settlement
  • Pay when you win and zero if you lose
  • We fund your assessments and reports
  • We can pay your rehabilitation costs
  • There are no hidden costs or uplift fees

Our workplace accident and injury lawyers can explain our legal cost agreement during a free case review. This document outlines our 100% no-win, no-fee policy. It’s free to know where you stand. Call 1800 700 125

Mental health compensation claim icon

Can I Claim Workers' Compensation for a Mental Injury?

You may be eligible to claim workers’ compensation benefits when you are diagnosed with a mental injury, and your job is a significant contributing factor.

You can also be eligible to make a psychological injury claim for a pre-existing psychological condition that worsens because of your work. You can be eligible to seek compensation if you are a:

  • Full-time employee
  • Part-time employee
  • Casual worker
  • A subcontractor

Free Case Assessment

Splatt Lawyers can explain your legal options and eligibility during a free case assessment. Call 1800 700 125

Psychological injury payout calculator

How Much is a Workplace Psychological Injury Claim Worth?

The value of work injury damages for a workplace psychological injury claim is based on the impact of the loss related to your condition, including the following:

  • Lost Income: past and future loss
  • Superannuation: past and future loss
  • Medical expenses
  • Lost enjoyment of life
  • Illness-related travel expenses
  • Pain and suffering

Experienced mental injury compensation lawyers can explain your legal options, the approximate value of a lump sum compensation payout, and common barriers to a successful claim.

Steps to a Successful Psychological Injury Claim

To make a successful psychological injury claim, you must:

  1. Seek medical treatment from a qualified medical practitioner, like a psychologist or psychiatrist.
  2. Immediately file a mental injury report with WorkCover and your employer
  3. Once you have an accepted WorkCover claim, contact a workers’ compensation lawyer for advice on your rights.
  4. Collate medical evidence that proves your condition.
  5. File a worker’s injury claim form with the state workers’ compensation authority (WorkCover).
  6. Receive workers’ compensation payments or challenge a denied claim.

Comprehensive and compelling medical evidence is essential for a successful legal outcome. When seeking compensation, Workcover will give more weight to a psychological or psychiatric assessment than one from a general practitioner.

Typically, the employee has the burden of proof when claiming workers’ compensation. For this reason, you will likely need evidence from a qualified medical practitioner and a work injury lawyer to support the legal process.

How to Lodge a Workers' Compensation Claim for a Mental Injury QLD

The process for filing a workers’ comp claim for a mental health issue is the same as for physical injury claims.

  1. First, lodge a work injury report with your employer
  2. Then seek psychiatric care from a mental health professional, who should give you a Work Capacity Certificate
  3. Collate medical evidence and other supporting documents
  4. Lodge a completed WorkCover claim form online
  5. Seek legal advice from a workers’ compensation lawyer about your rights and entitlements
  6. WorkCover will assess your case
  7. Get a lump sum compensation payment or start court proceedings

Mental Injury Workers Compensation Payout Amounts

Common Law Payout Amounts for Workplace Injuries

Generally, the value of common law compensation payouts for mental injury at work depends on the:

  • Severity of your condition
  • Its impact on your life
  • And your chance of recovery

These considerations include your lost future career path, often overlooked in common-law psychological injury claims.

The QLD Workers’ Compensation Commission statistics for 2022-2023 show that the average lump-sum payout for a common-law psychological injury was around $68,000.

Permanent Impairment Payouts for Psychological Injuries

Generally, the permanent impairment claim process begins when a worker’s compensation claim ends.

Whether you have a preexisting psychological condition or a new mental illness, an injured worker could be eligible to receive a permanent impairment payout depending on their DPI rating. 

First, your weekly benefits cease. Then you have a permanent impairment assessment. When approved, the QLD WorkCover insurer will make a lump sum payout, which settles your claim for psychological injury.

However, you should seek legal advice to assess the viability of seeking common law damages, which are usually larger.

More about permanent impairment

QLD Permanent Impairment Payment Amounts

QLD workers’ compensation payout amounts for psychological injuries are capped at the maximum statutory limit of $422,292 for the 2025-2026 financial year. 

Each 1% of impairment on the ISV scale has a payout value of $1,953.70. Here are some examples:

  • 5% DPI – approximate value of $21,112
  • 10% DPI – approximate value of $42,229
  • 15% DPI – approximate value of $63,338
  • 20% – approximate value of $84,451
  • 30% – approximate value of $142,600

NOTE: Common law payouts for employer negligence are generally higher as they consider both economic and non-economic damages.

  • Workers with a permanent impairment of 20% or less can choose either a WPI lump sum payment or a common law claim for common law damages.
  • People with a 20% or greater work injury assessment could claim work injury damages and receive a WPI lump-sum payment.
  • Emergency service workers can have a lower threshold.

Common Mental Health Conditions for Compensation

Queensland workers have previously had successful psychological injury claims for:

Note: You can also seek personal injury compensation if you already had mental injuries and your work made them recur, accelerate, escalate or deteriorate.

So, if you have a diagnosed mental health condition, first seek medical treatment, then seek legal advice from an experienced WorkCover lawyer.

In Queensland, there are a range of workplace incidents or behaviours that commonly cause a WorkCover claim for psychological injuries, including:

  • Bullying and harassment from a work colleague or management
  • Toxic management
  • Excessive workload
  • Lack of proper training
  • Unclear job role
  • A single traumatic event at work
  • Unfair work procedures
  • Breach of workplace health and safety rules

Reasonable management action is feedback or disciplinary action provided by your manager with the intent of helping you improve your work performance. Actions arising from a performance review, such as dismissal, demotion, transfer, retrenchment or redeployment, could be considered reasonable under certain circumstances. Failure to award other benefits, including promotion, can also be reasonable.

  • The work injury insurer may try to deny a case by arguing that the psychological injury resulted from a reasonable management action.
  • To have an approved workers’ compensation claim, you must show that your illness is not the consequence of a reasonable management action.
  • Your employer must have breached their duty of care to qualify for a lump sum offer.
  • A Workcover lawyer understands how to prove this type of case.

You could start a workers’ compensation claim for a mental injury without first being diagnosed by a psychologist or psychiatrist. However, you must have a formal diagnosis from a medical practitioner who will provide a Work Capacity Certificate.

Receiving treatment from a general practitioner can start the claim process, but the work injury insurer (WorkCover) will consider a diagnosis from a psychiatrist as more compelling evidence of a work injury.

Time limits to claim workers compensation for mental illness

Time Limits for Work Mental Health Claims

There are strict time limits for Queensland workers’ compensation mental health claims. Section 131 of the Workers’ Compensation and Rehabilitation Act 2003 (Qld) states that you must lodge your case within six months. However, WorkCover can waive this time limit for some workplace incidents, which is rare.

You can also seek common law damages for severe psychological injuries, which have a three-year time limit from when the mental health issue began.

In all claim cases, early intervention is your best legal strategy. Experienced legal advice will help you understand the actions you should take (and not take) to access a lump sum compensation payout.

It’s free to know your rights

Are Psychological Injury Claims Stressful?

Yes, serious workers’ compensation claims for workplace mental injury can be stressful. However, a qualified workplace compensation lawyer can help find the best legal strategy. Claiming against WorkCover for a workplace mental illness is generally more challenging than claiming for a physical injury. There are several reasons for this:

  1. You can see a physical injury
  2. Psychiatric injuries are not visible and rely on expert evidence
  3. You need not prove reasonable management action for a physical injury.

In Queensland, approximately 6% of workers’ compensation claims were for a psychiatric disorder, and they denied about half of these. About a quarter of rejected claims had their decision reversed. 

If your psychiatric disorder prevents you from working again in your usual occupation, you might also have a Total and Permanent Disability (TPD) claim through a superannuation insurance policy. When you have a successful psychological disability claim, a lump sum payout is deposited in your superannuation account.

Unlike workers’ compensation, it doesn’t matter how you acquired your mental health condition. All you need to prove is that your injury or illness stops you from working in your regular occupation. Use our quick TPD calculator now to see the value of compensation payouts.

More about TPD claims for mental illness

The Queensland Worker’s Compensation Act workers who have an accepted claim. This means your boss cannot change your employment status or terminate your job for 12 months due to your injury. If you were sacked during this period, they would be penalised.

Of course, making a WorkCover claim for a mental injury can impact your future career plans within your industry. But, when your mental health condition stops you from working again in your usual occupation, you could be eligible to make a Total and Permanent Disability (TPD) claim and get a lump sum disability payout.

After making a mental health claim, returning to work usually takes some time. Because psychological injuries are complex and often involve several factors, workers need help that is specific to their mental health condition. That’s why return-to-work solutions often involve employers, workplace injury rehabilitation providers, and claims managers working together to help people get back to work successfully.

In Australia, good methods of helping people return to work include:

  • Phased Return to Work: Slowly adding more hours and responsibilities to an employee’s job over time can help them get used to working again without increasing their stress.
  • Changing Duties: Changing an employee’s job duties or workload to fit their current abilities and lower the things that make their condition worse.
  • Flexible Working Arrangements: Providing options like reduced hours, working from home, or flexible scheduling to help support their recovery with ongoing care.
  • Changes to Workplace Environment: Making the workplace a safe and supportive place where people are less likely to be stressed out by things like harassment, bullying or too much pressure.
  • Ongoing Support and Communication: Keeping in touch with the employee, employer, and healthcare providers on a regular basis to check on progress and quickly deal with any problems.
  • Mental Health Training for Other Employees: Teaching people at work to understand each other, reduce stigma, and create a culture of support.
A group photo of lawyers specialising in workers compensation payouts for psychological injuries
Workers compensation claim icon

How Lawyers Help with Workers' Compensation Payments

Experienced workers’ compensation lawyers share legal advice with employees suffering psychological injuries caused by employer negligence. They can advise on your best course of action and assist you with collating factual evidence. A free claim review can help you understand the following:

  • Eligibility to claim a psychological injury workers’ compensation payout
  • If you can make a TPD claim or a common law claim
  • If you qualify for a permanent impairment payout
  • Your approximate payout value and next steps in the claim process
  • Our no-win, no-fee, no-risk policy

Pay for a win and zero if you lose. It’s free to know your legal position. Call 1800 700 125

Mental Health Workers Compensation Lawyers Near Me

Splatt Lawyers provides legal advice for claiming workers’ compensation benefits from ten QLD-wide locations.

Psychological Injury Workers Compensation Payout FAQs

Successful psychological injury claim faqs

What is the definition of excessive workload?

Based on previous cases in Queensland:

  • If you are a full-time employee working up to an extra hour a day (on your usual workdays), this is not considered excessive.
  • However, if you work an additional 12 hours a week over an extended period, including on weekends, this is considered excessive.

There are many conditions under which your job could cause you further harm when you already suffer from a psychological illness.

  • For example, you have an excessive workload, and the constant pressure and additional hours are causing an escalation of your symptoms.
  • To make a claim, your employer would need to be aware of your existing health condition and have done nothing to address your problem. 
  • Receiving a compensation payout for mental injuries is frequently more challenging than for a physical injury since the harm is invisible.
  • However, this process is more straightforward if you have comprehensive medical treatment records that demonstrate how an injury or illness affects your work capacity.

People currently receiving statutory benefits often want to know the maximum payable amount under the Queensland workers’ compensation scheme.

According to Section 140 of the Workers Compensation and Rehabilitation Act 2003, 216.15 times the Queensland full-time adult’s Ordinary Time Earnings (QOTE) is the highest statutory compensation that can be awarded for injuries incurred in a single incident. Currently, the QLD QOTE is $1,953.70, which means the maximum statutory compensation sum, after multiplying this figure by 216.15, is $422.292.

In Queensland, it’s possible to make workers’ compensation claims for mental health conditions and psychological injuries when your job is a significant contributing factor.

Queensland Law Society Accredited Personal Injury Specialist logo
Gold Coast District Law Association logo
Queensland Law Society Logo

Our Team are Ready to Help with a Free Claim Assessment.

Super Insurance Legal News

Keeping you up-to-date and informed with relevant facts and news about the
world of compensation law, our law firm and our services

Top 6 Common Types of Compensation Claims
Private Health Insurance and Injury Compensation
How Much Do Lawyers Charge For TPD Claims? Ultimate Guide