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How to Calculate your Pre-Injury Average Weekly Earnings

Friday, July 08, 2016

As an injured worker you may be entitled to weekly payments of compensation. If this is the case your pre-injury average weekly earnings (PIAWE) are an important element in determining the amount of weekly compensation.

PIAWE refers to the amount of money you were earning before your injury, this amount includes any overtime and allowances. However, overtime and allowances are only taken into account when calculating the amount of compensation payable for the first 52 weeks.

If you wish to calculate the amount of compensation owed to you after the first 52 weeks, then you will need to use your pre-injury average weekly ordinary earnings which excludes overtime and allowances.

There is a maximum for pre-injury average weekly earnings. Your earnings cannot exceed $1,999.30 per week. If your pre-injury weekly earnings exceed this amount, then $1,999.30 will be used instead of your real earnings. The maximum amount increases slightly every 6 months.

Example 1:

If you are trying to figure out your compensation for the first 52 weeks you will need to include your pre-injury ordinary earnings and any overtime or allowances.

Week 1

Ordinary Earnings / Week:      $800.00

Overtime / Week:                     $300.00

Allowances / Week:                 $45.00

 Total:                                        $1145.00

 

Week 2

Ordinary Earnings / Week:   $900.00

Overtime / Week:                  $150.00

Allowances / Week:              $45.00

 Total:                                     $1095.00

 

You may have earnt a different amount of money each week. In order to calculate the average you will need to get the totals from the 52 weeks prior to the injury date. You then need to add the totals together and divide them by 52.

Total earnings for 52 weeks ÷ 52= PIAWE

 

Example 2:

If you are trying to figure out your compensation after the first 52 weeks you will need to exclude any overtime and allowances. You can only use your ordinary earnings.

Week 1

Ordinary Earnings / Week:   $800.00

 Total:                                       $800.00

Week 2

Ordinary Earnings / Week:  $900.00

 Total:                                      $900.00

 

In order to calculate the average you will need to get the totals from the 52 weeks prior to the accident date. You then need to add the totals together and then divide them by 52. 

Total earnings for 52 weeks  ÷  52  =  PIAWE

 

Weekly payments of compensation under the Workers Compensation Act are complicated and are determined by whether you are unfit for work or able to undertake suitable employment, your PIAWE rate, and your % of whole person impairment. Due to the complex nature of weekly compensation payments you should consult an accredited specialist in personal injury law to assist you.

GARLING & CO 2016

 

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