Calculating weekly compensation for employees

Visual 

A navy blue background displays the white ACC logo. Text appears alongside it: "He Kaupare. He Manaaki. He Whakaora. Prevention. Care. Recovery." The background wipes to a peach/pink colour. A small tag in the top right reads: PAYE employees. Large text appears on-screen: How we calculate weekly compensation. 

Transcript 

Upbeat, gentle instrumental music plays in the background 

Visual 

A male presenter with a beard and curly hair tied in a bun, wearing a cream sweater, sits in an armchair in a modern office room with wood-panelled walls, a potted palm and couch in the background — there is an open laptop and mug on a wooden side table beside him. He speaks directly to the camera. 

Transcript 

Kia ora. There are several ways we can manaaki, or support you, in your recovery from injury. If you're getting weekly compensation while you're unable to work, you may notice your payments change. We'll explain why and show you how payments are calculated if you're a PAYE employee. ACC usually pays up to 80% of the income you earned before your injury — based on your earnings over a set time. This is before tax and other deductions. How we calculate this depends on your employment type and the time you've spent away from work or working at reduced hours. Let's run through three examples. 

Visual 

The screen switches to a graphic on a white background titled: ‘Example 1: Short term calculation’ with an orange dollar sign icon below. The calculation appears line by line on the right: 

1. Earnings of $5,000 ÷ 4 weeks = $1,250 
2. ACC pays 80% = $1,000 
3. Minus tax and deductions – $300 
4. Payment received = $700 

Transcript 

For the first four weeks, we use the short-term rate. Here's an example. If you earned $5,000 in the four weeks before you were injured, that's $1,250 a week. ACC will pay 80% of that, which is $1,000. After tax and deductions like student loan or KiwiSaver, your payment might be around $700. 

Visual 

The graphic changes to ‘Example 2: Long term calculation: permanent’. The calculation appears line by line: 

1. $58,800 ÷ 49 weeks worked = $1,200 
2. ACC pays 80% = $960 
3. Minus tax and deductions – $280 
4. Payment received = $680 

Transcript 

After four weeks, the long-term rate applies. As a permanent employee, we look at your total income from your employer and divide by the number of weeks you worked, up to 52 weeks. Let's say in this example you had three weeks of unpaid leave over the past year. This means we divide your total income by 49 weeks. So, the payment works out to be around $680 after tax and deductions. 

Visual 

The graphic changes to ‘Example 3: Long term calculation: non-permanent’. The calculation appears line by line: 

1. $52,000 ÷ 52 weeks = $1,000 
2. ACC pays 80% = $800 
3. Minus tax and deductions – $200 
4. Payment received = $600 

Transcript 

If you're a non-permanent employee, we add up earnings from all your jobs in the past year and divide by 52, no matter the weeks worked. This better reflects your usual income if you've had casual, seasonal, or multiple jobs, if you're on a fixed-term contract with less than a year left, or if you'd given notice to leave your job before your injury. 

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The video cuts back to the full shot of the presenter in the office. 

Transcript 

Whether you're permanent or non-permanent, some things may affect your compensation rate, like receiving weekly compensation in the past year or taking agreed unpaid leave. Talk to us if you're unsure; we're here to help. Here's a summary of what we've covered so far. 

Visual 

The screen switches to a graphic on a white background. On the left, the heading: ‘key takeaways’ appears above an orange pencil icon. On the right, a numbered list appears, line by line: 

1. Examples are for guidance only 
2. Your payment depends on your employment type and time worked 
3. Tax and deductions apply 

Visual 

The video cuts back to the presenter in the office for the closing statement. 

Transcript 

To learn more, visit our website. In the next episode, we'll share how weekly compensation is calculated when you return to work. Hoki mai anō." 

Visual 

The screen returns to the navy blue background with the ACC logo in the top left. Large text in the centre reads: Use MyACC to apply for weekly compensation and manage your claim. Contact details appear at the bottom of the screen, in the following order: website www.acc.co.nz, email address claims@acc.co.nz, and the free call phone number 0800 101 996. 

Transcript 

The upbeat, gentle instrumental music fades out.