In Victoria, stress-related absences are paid from your personal leave balance. WorkCover replaces your wages only for a mental injury diagnosed under the DSM and mainly caused by work, and since 31 March 2024 it excludes stress or burnout from the usual demands of your job unless bullying, harassment or trauma lies behind it.
That puts your leave balance at the centre. While a claim is decided, WorkSafe's provisional payments fund treatment for up to 13 weeks but pay no wages, so personal and annual leave carry your income. Below: how far a balance stretches, the employer's first 10 working days, the 95% and 80% rates up to $3,000 a week, and why paid annual leave does not cut weekly payments. New South Wales and Queensland apply different tests and rates: see stress leave in NSW and stress leave in QLD.
Key takeaways
- Victorian employees take stress-related time off as paid personal leave. There is no separate stress leave, and casuals have no paid sick leave at all.
- A WorkCover mental injury claim needs a DSM diagnosis, significant dysfunction, and work as the strongest or largest contributing cause.
- Since 31 March 2024, stress or burnout mainly caused by usual or typical events in your duties is excluded. Bullying, harassment and traumatic events still qualify.
- Provisional payments cover reasonable treatment for up to 13 weeks, kept even if the claim fails. They are not wages.
- On an accepted claim your employer pays the first 10 working days, then you get 95% of PIAWE to week 13 and 80% to week 130, up to $3,000 a week as at 1 July 2026.
- Paid annual or long service leave does not reduce weekly payments, provided your certificates of capacity cover the leave period.
Your personal leave pays first
Victoria has no stress leave entitlement of its own. If stress has made you unwell, the time off is the NES personal (sick) leave entitlement, drawn from the balance you build at 10 days a year if you are full-time. The Fair Work Ombudsman's wording is that sick leave "can include stress and pregnancy related illnesses", and you can take your whole balance at once if you need it.
That balance does more work in Victoria than people expect, because WorkSafe pays no wages while a mental injury claim is being decided. Ava works full-time, 38 hours over 5 days, on base pay of $1,600 a week. Her average earnings are $1,800 once $200 of regular overtime is added. She has 76 hours of personal leave and 114 hours of annual leave.
| Ava's balances | Hours | Weeks at 38 hours | Paid |
|---|---|---|---|
| Personal leave | 76 | 2 | $3,200 at base pay, no overtime |
| Annual leave, if she asks to use it | 114 | 3 | Her usual annual leave pay |
| Income covered | 190 | 5 |
Work out your balance with the Sick Leave Calculator Australia, or add up your hours to date with accrued sick days.
"This can include stress and pregnancy related illnesses." "10 days for full-time employees, and pro-rata for part-time employees." "All employees except casuals are entitled to paid sick and carer's leave." Content last updated 10 August 2026, retrieved 7 October 2026. Ava's wages are illustrative.
Can you claim WorkCover for stress in Victoria?
The answer decides whether your income keeps coming out of your own leave or switches to weekly payments. These tests apply to mental injuries that occurred on or after 31 March 2024, under the Workplace Injury Rehabilitation and Compensation Amendment (WorkCover Scheme Modernisation) Act 2024.
| Test | What WorkSafe requires |
|---|---|
| Diagnosis | Diagnosed by a medical practitioner in accordance with the DSM, and causing significant behavioural, cognitive or psychological dysfunction |
| Cause | For a primary mental injury, employment is the strongest or largest contributing cause |
| Stress and burnout exclusion | No compensation where the injury was mainly caused by stress or burnout from events that are usual or typical and reasonably expected in your duties |
| Reasonable management action | No compensation where reasonable management action, carried out in a reasonable manner, caused the injury |
| Injuries before 31 March 2024 | The older definitions still apply |
The stress and burnout exclusion
The exclusion targets the ordinary pressures of a role. When what wore you down is a usual or typical part of your duties, a DSM diagnosis does not rescue the claim, and paid leave is what remains.
Jordan, an office manager, burns out after a year of heavy workload with no bullying involved. If that workload was usual or typical for the job, the exclusion applies and Jordan's income runs on personal leave, then annual leave. A claim can still unlock treatment funding through provisional payments for up to 13 weeks, as long as the claim form or certificate of capacity shows a mental injury.
Bullying, harassment and trauma still count
WorkSafe keeps two routes open. "Repeated and unreasonable conflict with people" is treated as bullying and harassment, not as usual stress. And stress or burnout caused by traumatic events that are usual in the work is still covered.
Reasonable management action
A mental injury caused by reasonable management action carried out in a reasonable manner is not compensable. Both halves count: the decision itself must be reasonable, and so must the way it was handled.
WorkSafe Victoria, Scheme modernisation: "A mental injury is now defined as an injury that: causes significant behavioural, cognitive or psychological dysfunction, and has been diagnosed by a medical practitioner in accordance with the Diagnostic Statistical Manual of Mental Disorders"; "employment must be the strongest or largest contributing cause"; "Workers will not be eligible for compensation where a primary mental injury has been mainly caused by stress or burnout as a result of events that are considered usual or typical and are reasonably expected to occur in the course of their duties." Exceptions include "repeated and unreasonable conflict with people, which is considered bullying and harassment" and stress or burnout "resulting from traumatic events that are considered usual or typical and reasonably expected to occur in their work". "These changes will only apply to new mental injuries that occurred on, or after 31 March 2024." WorkSafe Victoria, Provisional payments: ineligible if "caused by reasonable management action carried out in a reasonable manner." Neither page is dated; both retrieved 6 October 2026.
How to claim, and what to do about leave meanwhile
- See your GP for a certificate of capacity. For WorkCover it needs to record a diagnosed mental injury. A certificate showing a mental injury is also what opens provisional payments.
- Tell your employer and start personal leave. Have evidence ready in case it is requested.
- Lodge the claim form. The claim is made on your employer, and for provisional payments your employment must be connected to Victoria with no earlier accepted claim for the same injury and circumstances.
- Keep your income going from leave until a decision: personal leave first, then annual leave if your employer agrees.
Forms and current timeframes are on WorkSafe Victoria's site, starting from its provisional payments page. For what your employer can ask for as evidence of the leave, see doctor's certificate for sick leave and the sick leave evidence guide.
What you are paid while the claim is decided
Provisional payments are WorkSafe's early support for mental injury claims. They pay for "reasonable treatment and services" while you wait, for up to 13 weeks, and if the claim is not accepted you can keep receiving them for up to 13 weeks. They do not replace wages.
| What you need while waiting | Where it comes from |
|---|---|
| Treatment and services | Provisional payments, up to 13 weeks |
| Income, first | Your personal leave balance |
| Income, once personal leave runs out | Annual leave, by agreement with your employer |
Ava's 190 hours cover 5 weeks of income during the decision. Without the annual leave, she would have 2 weeks.
WorkSafe Victoria, Provisional payments: "Workers and eligible volunteers can access provisional payments for reasonable treatment and services for work-related mental injuries, while they wait for a claim outcome. If a claim is not accepted, a worker or eligible volunteer can continue to receive provisional payments for up to 13 weeks." "A worker can receive provisional payments for up to 13 weeks if their claims form or certificate of capacity shows a mental injury." Not dated, retrieved 6 October 2026.
WorkCover weekly payments in 2026-27
Once a claim is accepted, your employer pays the first 10 days of incapacity unless it has taken the buy-out option on its WorkCover insurance. Those are the first 10 working days you would have worked: two calendar weeks if you work 5 days a week, two and a half if you work 4. Your employer also covers the first $903 of medical costs, except where provisional payments applied.
| Period | Weekly payment | Detail |
|---|---|---|
| Weeks 1 to 13, no capacity | 95% of PIAWE | Up to the statutory maximum |
| Weeks 14 to 130, no capacity | 80% of PIAWE | Up to the statutory maximum; overtime and shift allowances drop out of PIAWE after 52 weeks |
| Weeks 14 to 130, working again | 80% of PIAWE, subject to the maximum, minus 80% of your current earnings | Applies from week 14 |
| Statutory maximum | $3,000 a week | As at 1 July 2026, indexed annually |
| After 130 weeks | Only if conditions are met | No capacity for any work likely to continue indefinitely and whole person impairment of 21% or more; or back at work at least 15 hours a week earning at least $257 |
PIAWE stands for pre-injury average weekly earnings, usually your average ordinary earnings over the 52 weeks before the injury. If you qualify, superannuation contributions start after 52 weeks of weekly payments.
Set against sick leave, and taking PIAWE to be the same as your normal weekly wage:
| PIAWE | Sick leave, while it lasts | While the claim is decided | Weeks 1 to 13, 95% | Weeks 14 to 130, 80% |
|---|---|---|---|---|
| $1,500 | $1,500 | $0 in wages (treatment only) | $1,425 | $1,200 |
| $1,800 | $1,800 | $0 in wages (treatment only) | $1,710 | $1,440 |
| $2,600 | $2,600 | $0 in wages (treatment only) | $2,470 | $2,080 |
| $4,000 | $4,000 | $0 in wages (treatment only) | $3,000 (capped) | $3,000 (capped) |
WorkSafe Victoria, Weekly payments information: "First 13 weeks (the first entitlement period): 95% of your PIAWE, up to the applicable statutory maximum of twice the State average weekly earnings"; "14 weeks to 130 weeks (the second entitlement period): 80% of your PIAWE, or up to the applicable statutory maximum. If your PIAWE includes any overtime or shift allowance, this stops after 52 weeks." With current work capacity: "80% of your PIAWE subject to the applicable statutory maximum, minus 80% of what you're currently earning at work." "As at 1 July 2026, the statutory maximum is $3,000, indexed annually." After 130 weeks: "at least 15 hours each week earning at least $257 each week (indexed annually)". "You may be entitled to superannuation contributions. These start after 52 weeks of weekly payments." (Not dated, retrieved 6 October 2026.) WorkSafe claims manual 2.4, Employer pays compensation: "an employer is liable for the first 10 days of incapacity and the first $903 (indexed annually) of medical and like expenses unless they take out the buy-out option"; "The first 10 days of incapacity are the first 10 working days that the worker would have worked if they had not been injured." "If the worker is entitled to provisional payments for a mental injury, the employer is not liable for the first $903 of medical and like expenses." (FY26-27 version, retrieved 7 October 2026.)
Worked examples
Ava, no capacity, with overtime in her PIAWE. Her PIAWE is $1,800, of which $200 is regular overtime.
| Period | Calculation | Ava receives |
|---|---|---|
| First 10 working days | Paid by her employer | Two calendar weeks |
| Weeks 1 to 13 | 95% of $1,800 | $1,710 |
| Weeks 14 to 52 | 80% of $1,800 | $1,440 |
| Week 53 onward | 80% of $1,600 (overtime removed) | $1,280 |
Ben, back two days a week. His PIAWE is also $1,800. In week 20 he works two days and earns $700. His weekly payment is 80% of $1,800 minus 80% of $700: $1,440 less $560 is $880, which with his wages gives him $1,580 for the week.
Chen, a high earner. With a PIAWE of $4,000, 95% would be $3,800 and 80% would be $3,200. Both exceed the statutory maximum, so Chen receives $3,000 a week in each period.
Jordan, excluded. Burnout from a usual workload falls inside the exclusion, so there are no weekly payments. Jordan's 2026-27 income is whatever personal and annual leave covers, plus up to 13 weeks of treatment through provisional payments.
What happens to your annual and long service leave
WorkSafe's claims manual answers three leave questions for workers on weekly payments:
- Taking paid leave does not cut your payments. If your current earnings drop because you are on paid annual leave or long service leave, WorkSafe must not change your weekly payment for that reason alone.
- Cashing out leave does not cut them either. Since 1 January 2010, weekly payments are not reduced when you receive a payment in lieu of accrued annual leave or long service leave.
- You need certificates for the leave period. Weekly payments continue during the leave only if certificates of capacity cover it.
On whether leave keeps accruing during a claim, WorkSafe stays silent on purpose: its agents are told not to advise employers whether a worker is entitled to payment or accrual of leave, and to refer both sides to the employment agreement and the Fair Work Act 2009. For how accrual works across paid and unpaid absences, see accruing leave while you are on leave.
"Effective from 1 January 2010, the legislation provides that weekly payments are not to be reduced where a worker receives payment in lieu of accrued annual leave or long service leave." "If the current weekly earnings of a worker are reduced because the worker is on paid annual leave or long service leave, WorkSafe must not, by reason only of that reduction, alter the amount of compensation in the form of weekly payments." "WorkSafe and Agents should not advise employers whether a worker is entitled to the payment or accrual of leave. Agents should advise employers and workers to refer to the appropriate employment agreement and/or the Fair Work Act 2009 (Cth)." "Workers who take leave while receiving weekly payments must provide Certificates of Capacity for the leave period to receive weekly payments whilst on leave." Retrieved 6 October 2026.
Can you be dismissed while on stress leave?
Your employer cannot dismiss you because you are away sick if you are still on paid sick leave, or if the absence is under 3 consecutive months and under 3 months in total across the past year. The Fair Work Ombudsman also points to possible extra protection in state workers compensation laws; this guide does not cover the Victorian provisions.
If the absence is getting long, read whether you can be fired for too many sick days, which counts the 3 months with real dates.
An employee is protected if "away for less than 3 consecutive months or less than 3 months in total over the last 12 months, or still using their paid sick leave." "additional protections may apply under state and territory workers compensation and rehabilitation laws." Content last updated 10 August 2026, retrieved 7 October 2026.
Stress leave in Victoria: questions
Is stress leave paid in Victoria?
Yes: it is paid personal leave, drawn from your balance at your base pay. WorkCover pays instead only if a mental injury claim passes the 2024 tests and is accepted.
Can I claim WorkCover for stress or burnout in Victoria?
Not where the main cause was stress or burnout from usual or typical events in your job. You can where bullying, harassment or a traumatic event caused a diagnosed mental injury and work was the largest cause.
What counts as a mental injury for WorkCover?
An injury diagnosed by a medical practitioner under the DSM that causes significant behavioural, cognitive or psychological dysfunction. For a primary mental injury, employment must be the strongest or largest contributing cause.
What does WorkSafe pay while my claim is assessed?
Provisional payments for reasonable treatment and services, for up to 13 weeks, which you keep even if the claim is rejected. Your wages during that time come from your leave.
How much are WorkCover weekly payments in 2026?
95% of PIAWE up to week 13, then 80% until week 130, never above WorkSafe's statutory maximum of $3,000 a week as at 1 July 2026.
Who pays the first 10 days?
Your employer, once the claim is accepted, unless it bought out that liability. The days are the first 10 working days you would have worked.
Does taking annual leave cut my WorkCover payments?
No. Neither paid annual or long service leave nor a payment in lieu of it reduces your weekly payments, as long as your certificates of capacity cover the leave.
How many days of stress leave can I take?
As many as your personal leave balance holds. The national rules set no minimum or maximum for a single absence.
Does performance management count?
Not if it was reasonable management action carried out in a reasonable manner. An injury caused that way is not compensable.
Can I be sacked while on stress leave?
Your absence is protected while your paid sick leave lasts, and after that while your total time off stays under 3 months across the last year.
WorkSafe Victoria: Scheme modernisation; Provisional payments; Weekly payments information; claims manual 3.5.4 to 3.5.6. Retrieved 6 October 2026. Claims manual 2.4 Employer pays compensation, retrieved 7 October 2026. Fair Work Ombudsman: Paid sick and carer's leave and Long periods of sick leave, both updated 10 August 2026, retrieved 7 October 2026.
Author & reviewer
Sarah has spent over a decade advising Australian SMBs on Fair Work, NES compliance, and payroll. Based in Sydney, she has worked across hospitality, retail and professional services.