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.

On this page

    Employment details we need

    When your employee applies for weekly compensation, we need information about their employment - 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.

    We'll try to get this information directly from Inland Revenue and your employee. If we get all the information we need from Inland Revenue and your employee, you will not need to provide us with any information. 

    It’s then your employee’s responsibility to keep you updated on their situation, including when their weekly compensation payments start and finish, and the amount they’re receiving. If you can’t get the information you need from talking with your employee, you can call us on 0800 101 996.

    If we need additional information, we’ll send you a form to complete which is tailored to your employee’s situation.

    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 first date they have been declared unfit for work. 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.

    What does my employee need to do? 

    Your employee will need to let us know if they're paid for any taxable income, including for a public holiday, while they're getting weekly compensation in case it affects how much we pay them. 

    They can notify us via their MyACC account. If they haven't registered, they can call us on 0800 101 996 or visit: 

    Register for MyACC

    Public holiday payments

    You may need to pay your employee for public holidays while they’re getting weekly compensation. Visit the Ministry of Business, Innovation and Employment (MBIE) website to find out what your obligations are:

    When a public holiday falls within a leave period

    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%, your employee needs to let us know as it could affect their weekly compensation. Your employee will be able to give you details of their weekly compensation payments, or you can contact us on 0800 101 996.

    Top-ups will be taxed as a secondary source of income.

    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 agree on an amount to be paid per week. 

    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, and your employee will need to let you know when their last weekly compensation payment will be made.

    For employers with a payroll team

    If you have payroll staff: please make sure your injured employee or their manager shares the details of their weekly compensation with your payroll staff.

    Employers with payroll staff 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.

    Your employee’s claim will be made with us as usual. If they need time off work, we can contact you to check if you’d like to use ERA for that claim or you can advise us to use ERA by default on all of your employees’ claims.

    If you choose to use ERA, we’ll calculate how much you need to pay and for what period. You'll need to tell us if you've paid your employee any additional taxable income, including public holidays, as this may affect the amount of reimbursement paid.

    You’ll receive payments for any claims fortnightly, monthly, or 4-weekly on your chosen payday.

    How to join ERA – talk to us first

    Email our business team. We can help you decide if ERA suits your business.


    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 the payments team or claims team:

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

    Last published: 2 June 2022