In NSW, you may be eligible to claim workers’ compensation if you suffer a psychological injury or mental illness due to your employment. To claim compensation, you must show that your employment caused your injury and contributed significantly to your inability to work.

If you’ve suffered a psychological injury at work, you should report it to your employer first. Then seek medical treatment and call PK Simpson psychological compensation lawyers to help you with your compensation claim. For some workers, the thought of going through a claim to seek compensation for psychiatric injuries can seem too stressful. At PK Simpson, we take on all the stress and handle everything for you so you can concentrate on recovering your mental health.

Workplace Psychological or Psychiatric Injury

Poorly designed or managed workplaces, harassment, fatigue, traumatic incidents (or a single incident), workplace violence, bullying and prolonged or excessive work pressures can all affect a person psychologically. Psychological injuries can present in several different ways symptomatically, and these can include:

Post-Traumatic Stress Disorder (PTSD)

Flashbacks, nightmares, hypervigilance, avoidance, feeling distant.


Hopelessness, agitation, apathy, fatigue, guilt, mood swings, lack of concentration.


Panic attacks, racing thoughts, tension, insomnia, breathing problems.

Workers’ physical and psychological health can be so adversely affected that they can’t do their usual job or any kind of work, so they need to claim workers’ compensation.

Claiming Compensation for a Psychological Injury

To claim workers’ compensation for a psychological injury in NSW, you must notify iCare and have medical evidence that supports your claim. This evidence should include a diagnosis of your injury from a qualified medical practitioner and a description of the symptoms you are experiencing.

You may also need to provide evidence of the link between your psychological injury and your employment, such as witness statements or records of your work history. If you engage a specialist workers’ compensation lawyer they will run your case for you, including gathering all the vital reports and building the evidence to support your compensation claim.

Psychiatric Impairment Rating Scale (PIRS)

Medical assessors are required to evaluate the full extent of your psychological injury by using the 6 categories below.

  1. Self-care and personal hygiene
  2. Social and recreational activities
  3. Travel
  4. Social functioning (relationships)
  5. Concentration, persistence and pace
  6. Employability

It’s important to be aware of these categories throughout your claim. Our psychological injury lawyers will break down the categories for you and guide you through the process to give you the best opportunity when it comes time for your evaluation by a psychiatrist.

Successful Psychological Injury Claims

If an employer fails to take steps to take care of their employees’ mental well-being, such negligence can lead to common law claims for psychological injuries, such as post-traumatic stress disorder. This can provide sufferers with a substantial lump sum compensation payment if their claim is successful.

Psychological injuries are often underrated. They can be debilitating, and those injured may find it impossible to continue working. Still, if your work environment was the leading cause of your mental injuries, you may be entitled to claim benefits and a lump sum payout of compensation.

When You Can Claim Compensation For Psychological Injury

To claim workers’ compensation in NSW for a psychological injury at work, submit a work injury claim or see your GP. Since you need to prove your workplace environment, treatment, or trauma significantly contributed to your injury, you’ll need the help and advice offered by an experienced workers’ compensation lawyer to assemble the evidence for your claim.

When Benefit Payments Should Begin

At present, insurers are legally obliged to begin provisional payments within seven days of an injury claim or call on the provision of a “reasonable excuse” in the legislation. After this time, the insurer either accepts or denies the claim within 21 days or opts for “provisional liability”, giving them 12 weeks for a decision. Meanwhile, the worker can receive medical treatment and income support.

The Psychological Injury Compensation Process

The process for psychological injury compensation claims is as follows:

  • After you have made your claim for workers’ compensation for your psychological injury and it is accepted, you’ll be provided with weekly payments to cover your wages while you’re off work. You will also receive payments for your medical and treatment expenses.
  • You must make a separate claim for a lump sum compensation payout if you qualify. This may comprise a common law claim for psychological injury and money for permanent impairment.

NSW Compensation Payouts For Psychological Injury

The table below shows the amounts of compensation you may receive for a successful psychological injury claim in NSW.

ClaimPayment Amount
Lost incomeFor the first 13 weeks you’re off work, you will receive up to 95 per cent of your pre-injury wages. These reduce to up to 80 per cent from the 14th week. As from December 2022, the maximum weekly amount  is $2,341.80.
Medical and treatmentYou will be reimbursed for all reasonable and necessary expenses.
Permanent impairmentYour lump sum will be between $22,480 and $665,260 if your Whole Person Impairment (WPI) is assessed as at least 15 per cent and your claim for permanent impairment is successful.
Common lawAn additional lump sum will be paid based upon your past and future lost earnings if a common law claim for psychological injury is successful. You must have a WPI of 15% or more.

Contact PK Simpson For Psychological Injury Claims

At PK Simpson, we’ve helped countless people with work-related psychological injuries get compensation, but we understand your unique situation. Our psychological injury compensation lawyers have the skills and experience to ensure you succeed. Contact a PK Simpson personal injury lawyer near you today to help you make a start on your recovery journey. Phone 1300 757 467 or use the convenient online form.