3.1.3 Changes in pay & incremental increases

If a worker's rate of pay changes or they are entitled to incremental increases in their pay, Agents must take into consideration the information contained in this section to calculate PIAWE.

Worker's rate of pay changes

A worker’s rate of pay may have changed during the relevant period. In some circumstances where this occurs, only the period after the variation is used to calculate PIAWE.

If the worker’s ordinary time rate of pay varies over the period of employment with the one employer, then only the period after the variation is used to calculate PIAWE if the worker:

  • voluntarily alters either the number of hours worked or the nature of the work performed
  • is promoted or appointed to a different position that results in higher ordinary earnings.

Note: this does not include pay increases due to CPI Consumer Price Index.

Incremental increases

Some workers are entitled to incremental increases in their pay at certain stages of their employment.

This applies to workers who at the time of the injury were either:

  • under the age of 21 years
  • apprentices
  • working under a contract of service requiring training, instructions or examination to become qualified for that occupation.

It is important to note that unlike many other weekly payment increases, incremental increases do not necessarily occur on the anniversary of the workers injury or cease work date.

The increase occurs on the date the workers earnings would have increased had they not been injured.

The increase may occur on the workers birthday or another date determined by an industry award, enterprise agreement or employment contract.

For eligible workers Agents must:

  • confirm the date the increase/s would have occurred
  • confirm the new PIAWE amount
  • recalculate PIAWE at each relevant stage date.
WIRC sch 2
AC sch 1A

PIAWE for a 21 year old

If there is no applicable rate when the worker reaches 21 years of age, the weekly payments to the worker are calculated as if the worker's PIAWE were equivalent to:

  • $2,060 (indexed annually) if the worker’s claim was first received by the Agent before 5 April 2010 or
  • $2,800 (indexed annually) if the worker’s claim was first received by the Agent on or after 5 April 2010.
WIRC sch 2
AC sch 1A

PIAWE information provided by employer

Agents must request from the employer, the PIAWE information based on what the worker would have earned at each stage of their employment, if not for the injury.

For exampleClosed If the worker was a second year apprentice at date of injury, on the anniversary of when the worker would have progressed to the third year apprentice rate, the worker's PIAWE must be recalculated based on this incremental rate.

PIAWE information not provided by employer

Where an employer has failed to provide the PIAWE information or the employer has ceased to trade, relevant information can be obtained from the worker and/or Fair Work based on the worker's relevant Award or Enterprise Agreement.

Make incremental increases

To make incremental increases on a claim the Agent much:

  • confirm if an increase is applicable by contacting the employer and worker via the generated letters (WPI1 and WPI2), email or phone

  • document all follow-up contacts made in NOVUS

  • record the outcome of the incremental increase review in the NOVUS e-form, including the date the next increase is expected to occur

  • recalculate the PIAWE based on the information supplied. The PIAWE e-form will generate for you to record this calculation

  • update the new PIAWE in ACCtion via screen CE01

  • send a letter to the worker and employer confirming the new PIAWE rate.

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