Can I receive partial benefits if I return to work part-time or in a reduced capacity?

Yes. Every panel insurer pays a 'partial disability' or 'partial benefit' when you return to work at reduced capacity earning less than your pre-disability income. The benefit is calculated proportionally to your income loss.

Partial benefits keep you supported while you rehabilitate. The exact formula and the minimum income-loss threshold vary by insurer.

The standard formula

The industry-standard calculation across all 9 panel insurers is:

(Pre-disability income minus current actual income) / pre-disability income, multiplied by your full monthly benefit.

Per-insurer partial benefit references

| Insurer | PDS section | Source | |---------|-------------|--------| | AIA | Section 5.1 / 5.1.2, Partial Disablement definition | AIA Priority Protection PDS Version 32, 9 November 2025 | | TAL | Section 2.6.1, Partially Unable to Work Benefit (worked example) | TAL Accelerated Protection PDS, 12 December 2024 | | Zurich | Income Protection section, Partial disability defined | Zurich Wealth Protection PDS, 1 November 2025 | | OnePath | Income Secure Cover, total and partial disability benefit | OnePath OneCare PDS, October 2025 | | ClearView | Income Protection Flex, disabled-part-of-the-month rule | ClearView ClearChoice PDS, 13 May 2024 (Update 5 June 2025) | | NEOS | Income Support Cover, partial benefit calculation | NEOS Protection PDS, 6 December 2024 | | Encompass | Income Protection Cover, partial benefit | Encompass Protection PDS, 26 September 2025 | | Acenda | Income Replacement Ratio formula | Acenda Insurance PDS, 27 September 2025 | | Futura | Partial disability definition, 80% regular hours test | Futura Protection PDS, 1 October 2025 |

A worked example

Pre-disability income: $10,000 per month. Full monthly benefit: $7,000. After returning to work part-time, you earn $4,000 per month.

• Income loss = ($10,000 - $4,000) / $10,000 = 60%.
• Partial benefit = 60% x $7,000 = $4,200 per month.

Combined income (employment + partial benefit) is $8,200 per month, against the original $10,000.

Common policy variations

• Minimum work-capacity threshold. NEOS requires the insured to be 'working but not to their full capability for at least three consecutive months' before partial benefits begin (NEOS PDS). Other insurers do not impose this consecutive-month rule.
• Minimum income-loss threshold. Some policies require a 20% or 25% income drop before partial benefits engage. Check the PDS.
• Duration cap. Most policies pay partial benefits up to the same benefit-period cap as full benefits. A few cap the partial benefit at a shorter duration.
• Hours test. Futura's Income Protection Cover applies an 80% of regular work-hours test (PDS).

Why partial benefits matter

Graduated return-to-work programmes are widely supported by treating doctors. Without partial benefits the insured would face an all-or-nothing choice: full claim with full benefit, or full return with zero support. Partial benefits allow you to rebuild work capacity while still receiving income.

Ask your treating doctor to document partial capacity and specific limitations in the medical certificate that supports your claim.

General advice only. Confirm the formula, minimum threshold, and duration cap against the current PDS for any insurer you are considering.