The payment of weekly compensation for workers compensation matters are calculated based on the workers pre-injury average weekly earnings (PIAWE) prior to the injury date.
Generally the insurer will review the amount the worker has earned in the 52 weeks prior to the injury. The total amount is then averaged over the 52 week period and the weekly amount is known as the PIAWE figure.
For the first 13 weeks of the claim the worker will receive 95% of the PIAWE amount and from 14 weeks onwards the worker will then receive 80% of the PIAWE amount if they are totally incapacitated to work.
If a worker was injured before 26 October 2018 and they had been paid over time or shift allowance payments in the 52 weeks leading up to the injury date, then these amounts were only included in the worker’s PIAWE, and subsequent weekly payments, for the first 52 weeks of weekly compensation payments following the injury.
However there has been some legislative changes and now for workers injured on or after 26 October 2018, any overtime and shift allowance payments are permitted to be included for the purpose of calculation of weekly payments at any time. Meaning the ’52 week step down’ as it was known no longer applies to workers with an injury on or after 26 October 2018.
This is a significant benefit to workers who relied on the additional income from overtime or shift allowance payments.
If you are uncertain whether your PIAWE amount has been calculated correctly please contact us at Everingham Solomons, because Helping You is Our Business.
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