What is Weekly Compensation?
Weekly compensation (also known as weekly payments) is an entitlement for people who cannot work due to a covered accident injury. It provides income replacement — typically 80% of your pre-injury earnings — for as long as your incapacity continues, subject to certain limits.
Eligibility
To receive weekly compensation, you must:
- Have an accepted ACC claim for your injury
- Have been employed or self-employed at the time of injury
- Have a medical certificate stating you are unable to work (total or partial incapacity)
- Be entitled under the Accident Compensation Act 2001
Non-earners (e.g., children, students, beneficiaries, retired people) do not receive weekly compensation but still receive treatment and rehabilitation support.
How Weekly Compensation is Calculated
For Employees
Your weekly compensation is 80% of your average weekly earnings before the injury. ACC calculates this based on your earnings in the 52 weeks before the injury, up to a maximum cap (the "weekly maximum").
Current maximum: As of 2025, the maximum weekly compensation is approximately $1,924 per week (before tax). This is indexed annually to the average wage.
For Self-Employed People
Your compensation is 80% of your assessed pre-injury earnings based on your historical income (typically the last two years of tax returns). If you have opted into the CoverPlus Extra or standard CoverPlus plan, your levies and cover level may differ.
Abatement (Earning While Injured)
If you can do some work while recovering, ACC uses an "abatement" formula. Your weekly compensation reduces based on what you earn. Abatement allows you to try returning to work without losing all your entitlement:
- If your actual earnings are less than your pre-injury earnings, ACC pays 80% of the difference.
- If you earn at or above your pre-injury level, no weekly compensation is paid.
Waiting Period
There is a one-week stand-down (the first week after your injury) during which ACC does not pay weekly compensation. Your employer may pay sick leave or annual leave for this period. After one week, ACC payments begin automatically if you remain incapacitated.
How Long Do Payments Last?
Weekly compensation continues for as long as you are incapacitated due to the covered injury, until you reach vocational independence or return to work. In practice, ACC reviews your case periodically and may commission medical assessments. If ACC assesses you as vocationally independent, payments may cease.
Taxation
ACC weekly compensation is taxable income (like wages). Tax is deducted at source at your marginal rate, and you receive it as part of your annual tax assessment through IRD.