3.1.5 Overtime and shift allowances
3.1.5.1 Overview | 3.1.5.2 Calculate overtime & shift allowance | 3.1.5.3 Continuing overtime and/or shift allowances | 3.1.5.4 Types of shift allowances | 3.1.5.5 Nursing shift allowances
PIAWE includes overtime and shift allowances. The length of time that overtime and shift allowances are included in the worker’s PIAWE depends on when the worker’s claim for weekly payments was received by the Agent.
Overtime and shift allowances are not included in the calculation of:
- weekly payments for pre 12 November 1997 claims and
- weekly payments for claims given, served or lodged before 1 September 2000.
Claims first made on or after 5 April 2010
For claims for weekly payments first made on or after 5 April 2010, overtime and shift allowances are included in PIAWE for the first 52 weeks of weekly payments.
Claims first made before 5 April 2010
For claims first made before 5 April 2010 that were given, served or lodged on or after 1 September 2000, overtime and shift allowances are included for the first 26 weeks of weekly payments.
3.1.5.1 Overview
Shift allowances recognise that the time the work is performed (the shift) imposes some burden and/or disadvantage on the worker, which should be compensated by way of an extra payment (the allowance) that is additional to ordinary wages.
Why are shift allowances paid
The key point is that the hours of work that attract the shift allowances are part of a worker’s standard number of hours for that period (a week, fortnight, etc).
Such allowances are paid in addition to the ordinary time rate of pay because of the timing of the shift worked for the normal or standard span of hours.
A shift allowance is not automatically paid for normal or standard hours worked by all workers in the same occupation, earning the same ordinary time rate of pay.
Multiple shifts
In a number of occupations, workers are assigned or rostered to work one of a possible number of shifts, some of which may attract shift allowances.
They may work one particular shift or a combination of shifts over a pay period or across different pay periods.
The shift allowances may depend on the worker’s shift or the combination of shifts.
Define overtime
Overtime is the time worked in addition to a worker's usual hours of employment. For example: a worker might work a full eight hour day, then continue to work for a further two hours. The additional two hours are considered overtime.
Conditions to include overtime in PIAWE
Overtime is included to calculate PIAWE if:
- the worker worked paid overtime during the relevant period and
- it is likely that but for the injury, the worker would have worked paid overtime at any time in the 26 weeks or 52 weeks (depending on the date the claim was received) after the injury.
Conditions to include shift allowances in PIAWE
Payments for shift work are to be included in the calculation of the worker’s PIAWE if:
- the worker worked shift work that attracted a shift allowance during the relevant period and
- it is likely that but for the injury, the worker would have worked shift work that attracted a shift allowance at any time in the 26 weeks or 52 weeks (depending on the date the claim was received) after the injury.
After 26 or 52 weeks
After 26 or 52 weeks of weekly payments (depending on the date the claim was received), the PIAWE figure reverts to the amount based on the ordinary earnings for the normal number of hours per week.
Public holidays
Public holidays are not classified as ‘leave’, they are public holidays declared by government. A worker is deemed to have either worked the day or in some industries, may have actually worked the day.
Public holidays are not deducted from the relevant days used to calculate the relevant period.
Claims for weekly payments first made before 5 April 2010
The formula to calculate an additional amount to be included in a worker's PIAWE is 
where:
- A is the total of the amounts paid or payable to the worker as overtime or a shift allowance (as the case may be) during the relevant period (12 months before the injury or less if continuously employed by the same employer)
- B is the number of weeks in the relevant period during which the worker worked or was on annual, sick or other paid leave.
Therefore, weeks of work and paid leave must be included in the calculation.
Claims for weekly payments first made on or after 5 April 2010
The formula to calculate an additional amount to be included in PIAWE for these workers is where:
- A is the total of the amounts paid or payable to the worker as overtime or a shift allowance (as the case may be) during the relevant period 52 weeks before the injury or less if continuously employed by the same employer)
- B is the number of weeks the worker worked during the relevant period or was on paid annual leave.
Other periods of paid leave for example, sick leave, long service leave or maternity leave are not included in the calculation of the number of weeks. These weeks are deducted from the total.