When an employee is off work due to a health problem or injury and receives an income, the payments are termed a "wage replacement." Examples of wage replacement include:
| • | Compensation weekly payments following a work injury or health condition; |
| • | Private disability insurance; |
| • | Employer-sponsored labour insurance; |
| • | Disability benefits arranged through the employee's superannuation fund; and |
| • | Compensation weekly payments following a motor vehicle accident.
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 Effective wage replacement levels and systems motivate the employee and employer to be proactive with return to work.
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Factors that influence wage replacement include:
| • | The relevant compensation legislation; |
| • | Shift and other allowances; |
| • | The duration of the claim or time off work; |
| • | Whether the condition is considered to be work or non work related; and |
| • | Insurance arrangements for non work related conditions. |
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This section of the handbook provides information about how to use wage replacement as an incentive for best practice RTW.
Focus on outcomes: Wage replacement as RTW incentive
During a graduated return to work…
Making the most of cost centre allocation
