Under the Workers Compensation legislation in NSW, workers are paid a percentage of their pre injury average weekly earnings (PIAWE) when injured.

What is PIAWE?

Weekly payments of compensation are made to injured workers. These payments are calculated by the insurer using a formula and the worker’s PIAWE.

For injured workers who sustained an injury on or after 21 October 2019, the formula is gross earnings divided by the number of weeks for the relevant earning period.

What can be included in gross earnings?

1. The income received for work performed in any employment, including wage, shift, overtime and other allowances paid, commission and pieces rates ( A piece rate is where an employee gets paid by the piece. This means the employee gets a pay rate for the amount picked, packed, pruned or made).
2. Non-monetary benefit, where a worker has the use of such benefits before the injury but no longer have the use of it after the injury. Examples of non-monetary benefits include the use of a motor vehicle, residential accommodation, health insurance or education fees.

What is not included in gross earnings?

1. Compulsory superannuation contributions made by the employer,
2. Workers compensation or other compensation payments for loss of earnings,
3. Bonuses paid by the employer at a discretion rather than under obligation.

PIAWE is normally calculated for the relevant earning period which is 52 weeks immediately before the injury.

If the worker works for the employer for less than 52 weeks, or less than 4 weeks, the relevant period is determined in a different way. If a worker was promoted or changed from full-time to part-time which can have a financially material change to earnings, the relevant period would be to commence from the date of change

If the worker and employer reach an agreement about PIAWE, they need to seek insurer’s approval within 5 days of the initial notification of injury.

The insurer will within the timeframe approve or refuse the agreed PIAWE

If a worker has more than one job at the time of injury, the calculation of PIAWE would include the average earnings from each job

If the insurer has approved liability in your matter, they will have notified you of how they have calculated your PIAWE. You should have received correspondence from them setting out their calculations for their rate of pay to you (the PIAWE rate).

If you need advice as to your PIAWE, please contact Rita Palazzolo on 0404 09 33 74 or email rita@rplawyer.com.au for a no obligation discussion as to your rights and entitlements.