An important new Workers Compensation Regulation Amendment commenced on 23 October 2020. COVID-19 Weekly Payment Compensation clarifies how workers earnings are treated in calculating a weekly payments & Pre-Injury Average Weekly Earnings associated with JobKeeper payments & other COVID-19 impacts.
Jobkeeper PIAWE & Weekly Payments – For many businesses understanding workers compensation is difficult and challenging in amongst running a business. Being able to understand Pre-Injury Average Weekly Earnings (PIAWE) and follow on to weekly payments can be very confusing. The new regular which integrates COVID-19 related matters associated with Jobseeker.
The new regulation means the following:
- In calculating PIAWE, an adjustment may be made to the relevant earning period if a worker has had a financially material reduction in earnings due to the pandemic
- Only earnings for work performed may be included in the calculation of PIAWE
- In calculating weekly payments, JobKeeper payments are included in the ‘current weekly earnings’ of a worker
The Regulation also provides for a 10% uplift in recoverable legal costs under Schedule 6 of the Workers Compensation Regulation 2016.
If you would like to discuss the implications or understand these latest important changes, please contact us to discuss.
For further information, please also refer to:
Source: State Insurance Regulatory Authority
Title: Workers compensation bulletin – Issue 97
Time: 3 Minutes