3.1.7 Deductible amount
If a worker who has had a NPB Non-pecuniary Benefit included in PIAWE and retains that benefit after injury, the monetary value of the retained benefit is deducted from the weekly payment amount before the calculation of the appropriate weekly payment rate. This ensures that the worker does not receive the value of the benefit twice and is referred to as the deductible amount.
A worker may stop receiving the NPB as soon as they are injured. In other cases a worker may continue to receive the benefit for a period of time after their injury but it will then cease.
If a worker did not receive a NPB before they were injured but the employer provides the benefit after the worker is injured then the value of the benefit is also a deductible amount.
Worker keeps NPB post injury
If the worker still has access to the NPB after their injury the value is still included as part of the PIAWE calculation. The monetary value is then deducted from the worker’s PIAWE on a $ for $ basis (the deductible amount). The balance is then used to calculate the worker’s weekly payment rate.
For example
A worker receives $800 in cash and NPBs with a value of $200. The worker retains the NPB after the injury.
PIAWE = $1000 less deductible amount ($200) = $800 X 95% = $760.
The worker will receive $760 in weekly payment plus retains the NPB value of $200
Worker no longer has access to NPB post injury
If the employer ceases to provide the NPB to the worker when they are injured or at a later date, the deductible amount is recorded as zero from the date that the worker loses the NPB. This has the effect of increasing the worker’s weekly payment amount as the monetary value of the NPB is no longer deducted from their weekly payments.
For example
A worker receives $800 in cash and a NPB with a value of $200. The worker loses the NPB after injury.
PIAWE = $1000 less deductible amount (zero) = $1000 x 95% = $950
The worker will receive $950 weekly payment (1st entitlement period)