As we saw in late 2018 the NSW Government introduced a number of changes to the NSW workers compensation system, the next phase of these changes relates to simplifying the calculation of a workers Pre-Injury Average Weekly Earnings (PIAWE).
PIAWE REFORMS – The NSW icare PIAWE Reforms are being made under ‘Schedule 3 of the Workers Compensation Legislation Amendment Act 2018’ and took affect on Monday 21 October 2019.
The PIAWE reforms aim to:
- A more simple and efficient way to determine PIAWE for a range of working arrangements
- Making the calculation easier to understand and explain and reflecting the workers actual pre-injury earnings
- Ensuring provisions apply fairly to workers
- Reduce PIAWE disputes
Key expected changes:
- New PIAWE definition – references to ordinary, shirt and overtime earnings will be removed. PIAWE will simply be the weekly average of the gross pre-injury earnings that the work has received in total from the time of employment
- PIAWE’s will be calculated as gross earnings and divided by the relevant earning period (52 weeks before injury)
- Deductions will no longer be considered
- In some circumstances, the insurer will be able to give effect to an agreement between worker and employer about the workers PIAWE
For further information, please contact us or refer to:
Source: icare
Title: PIAWE Reforms Take Effect
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