How much does ACC pay in weekly compensation?

ACC pays up to 80% of your pre-injury gross weekly earnings, before tax and deductions. The minimum gross payment for full-time earners is $752.00 per week (80% of the minimum wage of $23.50/hour for a 40-hour week, effective 1 April 2025). For the first four weeks, ACC uses your earnings in the four weeks before the injury. After four weeks, the long-term rate applies, based on your earnings over up to 52 weeks. PAYE, student loan, KiwiSaver, and child support deductions all apply to ACC payments.

Who pays for the first week off work after an ACC injury?

If your injury happened at work, your employer must pay you 80% of your usual pay for the first seven calendar days. ACC compensation begins from day 8. If the injury happened outside of work (for example, a sports injury or accident at home), you are not automatically entitled to employer-paid first week compensation. You can use sick leave or annual leave to cover the first week, then ACC starts from day 8.

What happens to ACC payments when I return to work part-time?

When you return to work on reduced hours or alternative duties, ACC adjusts your weekly compensation through a process called abatement. Your total income (work earnings plus ACC payment) cannot exceed your pre-injury earnings. For example, if you earned $1,000 per week before injury and ACC was paying $800, and you then return to work earning $300 per week, ACC reduces your payment to $700 so your total remains $1,000. You must report all work hours and earnings to ACC through MyACC.

How is ACC weekly compensation calculated for self-employed people?

For self-employed people on CoverPlus, ACC uses your liable earnings from your most recent tax return. If you are recently self-employed (passed one tax year end), ACC combines your declared self-employed earnings and any PAYE earnings, divided by weeks worked. If you are established self-employed (two or more tax year ends), the same combined total is divided by 52 regardless of weeks worked. CoverPlus Extra policyholders receive compensation based on their pre-agreed cover amount.

Is ACC weekly compensation taxable?

Yes. ACC weekly compensation is treated as taxable income. PAYE is deducted before payment, just like wages. If you have a student loan, KiwiSaver contributions, or child support obligations, those deductions also apply. You will need a secondary tax code if you are receiving both work earnings and ACC compensation simultaneously. Lump sum payments for permanent impairment are generally tax-free.

NZ ACC Weekly Compensation Calculator

Estimate your ACC weekly compensation if you cannot work due to an injury covered by ACC. ACC pays up to 80% of your pre-injury gross weekly earnings, before tax and deductions. The minimum rate for full-time earners is $752.00 per week gross (80% of minimum wage at 40 hours, effective 1 April 2025).

This calculator covers the short-term rate (first 4 weeks), long-term rate (after 4 weeks), and abatement when you return to work on reduced hours. ACC is New Zealand's no-fault personal injury scheme under the Accident Compensation Act 2001, covering all residents and visitors for accidental injuries.

Updated April 2026 Minimum rate $752.00/week from 1 April 2025. Accident Compensation Act 2001.

1. Pre-Injury Earnings

Employment type

Gross earnings in 4 weeks before injury (short-term rate)

Annual gross income (all jobs) (long-term rate)

Weeks worked in past year (exclude unpaid leave)

of 52

Was this a work injury?

2. Return to Work (Abatement)

Current work status

Current weekly earnings from part-time work

Full-time earner? (40+ hrs/wk before injury)

Deductions that apply

Your Estimated ACC Weekly Compensation

Short-Term Rate

First 4 weeks (gross)

Long-Term Rate
-
After 4 weeks (gross)

After Abatement

If returned part-time

First Week

Employer or leave

Compensation Calculation

Earnings in 4 weeks before injury-

Average weekly (short-term)-

80% short-term rate (gross)-

Annual income (all jobs)-

Weeks worked (excl. unpaid leave)-

Average weekly (long-term)-

80% long-term rate (gross)-

Minimum rate (full-time)$752.00/wk

Abatement and First Week

Pre-injury weekly earnings-

ACC payment (before abatement)-

Current work earnings-

ACC after abatement-

Total income (work + ACC)-

First week coverage-

ACC starts fromDay 8

Tax treatmentPAYE applies to ACC payments

Summary: Enter your details above.

How ACC Weekly Compensation Works

ACC (Accident Compensation Corporation) provides a no-fault personal injury cover for everyone in New Zealand, including residents, workers, and visitors. If you suffer an accidental injury and cannot work, ACC pays weekly compensation at 80% of your pre-injury gross earnings, subject to tax and other deductions.

Calculation Methods

Period	Method	Details
First 4 weeks	Short-term rate	80% of average weekly earnings in the 4 weeks immediately before the injury
After 4 weeks (permanent employee)	Long-term rate	Total income from current employer divided by weeks worked (up to 52). Unpaid leave weeks are excluded from the divisor.
After 4 weeks (non-permanent)	Long-term rate	Total earnings from ALL jobs in the past year divided by 52 (regardless of weeks actually worked)
Self-employed (CoverPlus)	Tax return basis	Based on liable earnings from most recent tax return
Self-employed (CoverPlus Extra)	Agreed amount	Based on pre-agreed cover amount chosen by the self-employed person

Minimum Rate for Full-Time Earners

If you worked full-time (40 or more hours per week) before your injury, ACC will pay at least the minimum rate of $752.00 gross per week (effective 1 April 2025). This is calculated as 80% of the adult minimum wage ($23.50/hour) for a 40-hour week: $23.50 x 40 = $940.00, and 80% of $940.00 = $752.00. This minimum ensures low-income full-time workers receive adequate compensation.

First Week of Injury

ACC does not pay for the first seven calendar days after your injury prevents you from working. Coverage for the first week depends on how the injury happened:

Work injury: Your employer must pay you 80% of your usual pay for the first week (7 calendar days)
Non-work injury: Use sick leave, annual leave, or take unpaid leave. Your employer is not required to pay you for a non-work injury.

ACC weekly compensation begins from day 8.

Abatement (Return to Work)

When you return to work on reduced hours or alternative duties while still recovering, ACC adjusts your payment so your total income (work earnings plus ACC) does not exceed your pre-injury earnings. This is called abatement.

Example: You earned $1,000/week before injury. ACC was paying $800. You return to work part-time earning $300. ACC reduces your payment to $700, so your total remains $1,000. You must report all work hours and earnings to ACC through MyACC.

What ACC Does and Does Not Cover

Covered by ACC	NOT Covered by ACC
Accidental injuries (work, home, sport, road)	Illness or disease (unless work-related gradual process)
Weekly compensation (80% of earnings)	Your vehicle damage in a car accident
Medical treatment costs	Property damage you cause
Surgery and rehabilitation	Income above the maximum liable earnings cap
Lump sum for permanent impairment (tax-free)	Pain and suffering (no general damages in NZ)
Home help and childcare assistance	Legal costs to sue for injury (no right to sue for personal injury in NZ)

Tax and Deductions

ACC weekly compensation is taxable income. The following deductions apply before payment:

PAYE income tax (at your applicable rate)
Student loan repayments (if applicable, 12% above $24,128 threshold)
KiwiSaver contributions (if you choose to continue)
Child support (if applicable)

If you are receiving both work income and ACC simultaneously, you will need a secondary tax code for the lower income source. Lump sum payments for permanent impairment are tax-free.

How to Apply

See a doctor or medical professional who will lodge an ACC45 claim form
Apply for weekly compensation through MyACC (my.acc.co.nz) or phone ACC on 0800 101 996
Provide employment and income details
ACC will calculate your entitlement and begin payments once approved

Related Calculators

Sources: Accident Compensation Act 2001 (legislation.govt.nz). ACC weekly compensation guidance (acc.co.nz/im-injured/financial-support/weekly-compensation). ACC client payment changes 1 April 2025 (acc.co.nz/newsroom). ACC calculating weekly compensation for employees (acc.co.nz).

This calculator provides indicative estimates only and does not constitute financial, medical, or legal advice. Actual ACC payments depend on your specific employment type, income history, and injury circumstances. ACC calculates your entitlement based on verified income data. Contact ACC on 0800 101 996 or visit acc.co.nz for definitive information about your claim.