Twenty dollar note and some coins

New client payment rates and interest rates from 1 July

He tataunga hou mō ngā utu ki ngā kiritaki, me ngā huamoni, mai i 1 Hōngongoi
25 June 2020
1 minute read

Read about changes we're making to some client payments and interest rates.

Changes to client payments

Each year we look at two indexes that let us know if we need to make changes to client payments.

For weekly compensation, we use the Labour Cost Index. For other grants and allowances, we use the Consumer Price Index.

What this means for clients receiving weekly compensation

Based on movements in the Labour Cost Index, this year we will increase payments by 2.53% for clients who have been receiving weekly compensation for more than 26 weeks.

New gross maximum and minimum rates:

  • the new gross maximum rate of weekly compensation payable will be $2,066.58 per week.
  • the new gross minimum rate of weekly compensation payable to a full-time earner will be $604.80 (equal to 80% of the adult minimum wage of $756.00 for a forty-hour week).

What this means for clients receiving other grants and allowances

Based on movements in the Consumer Price Index, non-taxable entitlements (Independence Allowance and Lump Sums) will increase by 2.53%.

Funeral grants, survivor grants and weekly childcare payments will increase as follows:

  • funeral grants: $6,471.17
  • survivor’s grants: $6,937.92 for a partner and $3,468.98 for each child under 18 and each other dependent
  • weekly childcare payments: $147.53 for one child, $88.51 each for two children and $206.55 in total for three or more children. 

Changes to interest rates paid on overdue weekly compensation

The interest rate we’ll pay on overdue weekly compensation payments will change to 3.568% per annum. Up until 30 June 2020, the interest rate continues to be 4.21% per annum.

A payment is considered overdue if we’ve taken more than one month to pay you after we've received the information we need to calculate and make it.

The legislation

The legislation relating to overdue weekly compensation payments and interest rates is set out in in section 114 of the Accident Compensation Act 2001.

Section 114, Accident Compensation Act 2001 – NZ Legislation website

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