Workplace injury cost calculator

Most of the cost of a workplace injury never shows up on the claim. Estimate your direct and indirect injury costs in a few minutes.

This tool gives general guidance only. It is not a substitute for an assessment by a qualified professional, or for consulting your workers as required under work health and safety law.

The calculator runs in your browser. Nothing you enter is stored or sent anywhere.

The default claim costs and weeks lost are Australian medians for serious Workers' Compensation claims, meaning claims with at least a week off work, from Safe Work Australia's Key Work Health and Safety Statistics Australia 2025. The medians are for 2022–23, the latest year with finalised claims. Replace them with your own claims data if you have it.

How the calculation works

• Claim costs = physical injuries × cost per physical claim + psychological injuries × cost per psychological claim.
• Replacement labour = total weeks lost × weekly wage cost × replacement labour %.
• Admin = injuries × admin hours per claim × admin cost per hour.
• Total = claim costs + replacement labour + admin + any premium increase.

With the defaults, five physical injuries a year cost about $107,000, or $21,400 per injury.

Direct vs indirect costs

Direct costs are the ones paid on the claim: weekly compensation for lost wages, medical and treatment costs, and rehabilitation. They're the easiest to see because they arrive with a claim number attached.

Indirect costs are the ones that don't. They include:

• overtime, agency staff or lost output while the injured worker is off
• time spent by supervisors, HR and safety staff on reporting, investigation and return-to-work planning
• recruiting and training a replacement
• lower productivity while the worker returns on suitable duties
• the effect on the rest of the team.

This calculator counts replacement labour and admin. It leaves out the harder-to-measure items, such as recruitment and the effect on morale, so the real figure is usually higher.

Why psychological injuries cost more

Mental health conditions made up 12% of serious claims in 2023–24, and these claims rose 161% in the 10 years to 2023–24. They also cost far more per claim. The median compensation paid on a mental health condition claim is more than four times the median for all serious claims ($67,400 compared with $16,300), and the median time off work is almost five times as long (35.7 weeks compared with 7.4).

Return to work is slower too. In Victoria, only 42% of workers with a mental injury were back at work within six months, compared with 75% of workers with a physical injury (Premier of Victoria, 1 December 2025).

Enter even one psychological injury in the calculator and the total rises sharply. With the other defaults, one psychological and four physical injuries cost about $172,250 a year.

If psychological injuries are part of your picture, start with the psychosocial risk assessment tool.

How to reduce injury costs

Most of the cost of an injury builds up over the weeks the worker is off. The biggest savings come from preventing injuries, and from shortening time off when they do happen.

• Early intervention. A strain reported and treated on the day it starts can usually be managed at work. Early intervention gives workers someone to tell on their own shift, before discomfort becomes a claim.
• Task redesign. Most injuries are a work design problem, not a worker problem. Changing the task, the tools or the layout removes risk at the source. Our injury prevention programs start with the tasks behind your claims.
• Onsite physiotherapy. Treatment on site, on shift, cuts the time workers spend travelling to appointments and waiting for them. See onsite physiotherapy.
• Return to work with suitable duties. Bringing workers back on safe, meaningful duties as soon as they're able reduces both replacement labour and the risk that time off becomes long term.

To track whether it's working, measure your lost time injury frequency rate with the LTIFR calculator. For more on what injuries really cost, read the hidden costs of workplace injuries.

Frequently asked questions

What is the average cost of a workplace injury in Australia?

Safe Work Australia reports medians rather than averages. The median compensation paid on a serious claim (one with at least a week off work) was $16,300 in 2022–23, and the median time lost was 7.4 weeks. For mental health condition claims, the medians were $67,400 and 35.7 weeks.

A median is the middle value: half of claims cost less and half cost more. Because a small number of long claims cost a great deal, the average is higher than the median. Using the median keeps this estimate conservative.

What are indirect costs?

Costs that don't appear on the claim, such as covering the injured worker's shifts, management and admin time, recruitment and training, and lost productivity. They are paid by the employer, whether or not they're tracked.

Does this include premiums?

Only if you enter a premium increase. If you're insured, your insurer pays most claim costs, and you pay them back over time through higher premiums and any excess. The claim costs in the calculator are the total compensation paid, whoever pays it, so adding a premium increase on top may count some costs twice. Use it if your broker has quoted a figure. Ask your insurer or broker.

How accurate is it?

It's an estimate, and only as good as the figures you enter. The national medians are a reasonable starting point, but your claim costs depend on your industry, state scheme, wages and how quickly workers return. Replace the defaults with your own claims and payroll data for a more accurate picture.