Income for your employee if they can't work

If your employee needs time off work due to an injury that we cover, we can help with their income. You need to provide us with information on their salary or wages for us to pay them weekly compensation.

On this page

    Employment details you need to provide

    When your employee applies for weekly compensation, we'll get in touch to ask you for information about their employment.

    You'll need to fill in a form which is tailored to your employee's situation – this includes:

    • how much they earned before their time off
    • their hours of work
    • any days of unpaid leave they’ve had
    • your business's IRD number.

    We use this information to calculate the payments we make to your employee.

    If your employee is a shareholder

    If your employee is a shareholder of the company, an accountant has to sign off the form. The accountant can be from within the business or be a third party. You’ll also need to provide information about their earnings for the past two tax years.

    How much your employee gets paid

    We pay your employee up to 80% of their average income as weekly compensation while they recover from an injury. Find out more about how weekly compensation works for your employee:

    Getting paid if you can't work

    Do I need to pay anything?

    We'll start paying your employee one calendar week after the date of their injury. The first week of income is covered in different ways:

    • if their injury happened at work, as their employer you’ll need to pay 80% of their regular income for the first calendar week
    • if their injury happened outside of work, they may ask to use sick leave, annual or unpaid leave to cover this time off.

    Public holiday payments

    It’s your choice whether you pay your employee for public holidays while they’re getting weekly compensation. You’ll need to let us know if you do pay them for public holidays in case it affects how much we pay them.

    You can choose to top-up your employee’s income

    We cover up to 80% of your employee’s income. You can choose to top-up their earnings with the remaining 20% or they can ask to use their sick or annual leave to top it up.

    If you top-up your employee’s income by more than 20%, you’ll need to let us know as it could affect their weekly compensation.

    If your employee is working less hours

    If your employee can do some work while they’re injured but not their usual job or hours, we'll work with you to calculate their weekly payments based on the work they're doing. We can agree on an amount to be paid per week or we’ll ask you to complete and return a form at the end of each pay period.

    Find out more about how you can support and plan a gradual return to work for your employee:

    Work with us to get your employee back to work

    When we'll stop making payments

    When your employee is well enough to return to work, we’ll stop paying weekly compensation. You’ll need to start paying them their full income again.

    For employers with a payroll team

    Employers who have staff to manage their payroll may be suitable for the Employer Reimbursement Agreement (ERA). With ERA you can keep paying your injured employee without interruption.

    How ERA works

    ERA is a legal contract with ACC. Under ERA you’ll pay the 80% weekly compensation to your staff on our behalf. Then invoice us for reimbursement later.

    Your employee’s claim will be made with us as usual. If they need time off work, you can choose to use ERA for that claim. We’ll get you to confirm this when we ask for their details.

    If you choose to use ERA, we’ll tell you how much you need to pay and for what period. Then we’ll reimburse you for this amount.

    How to join ERA – talk to us first

    Contact your Relationship Manager or email our business team. We can help you decide if ERA suits your business.

    Email business@acc.co.nz

    Confirming your application

    After you've talked to us, we'll send you the agreement to complete. You’ll need to include a bank deposit slip so that we can pay reimbursements into your account.

    We’ll send you a confirmation email when we’ve processed your agreement.

    Ending the ERA agreement

    You can contact us to end the agreement at any time.

    Contact us

    You can contact your payments officer or call the claims team:

    Phone 0800 101 996 (Monday to Friday, 7am – 7pm)
    Overseas +64 7 848 7400

    Last published: 20/07/17