5.6 MRCA - Service giving rise to injury is Permanent Forces (PF) - Currently in Reserve service – Section 104 | Military Compensation MRCA Manuals and Resources Library, Incapacity Policy Manual, 5. Method of Calculating NE/NWE by Service Type

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5.6 MRCA - Service giving rise to injury is Permanent Forces (PF) - Currently in Reserve service – Section 104

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Last amended 
16 August 2017

The following formula is applicable when the person:

  • Was injured in PF service

  • Is currently serving

  • Current service is in the Part-time Reserves

NE = full-time ADF rate of pay for the week + pay-related allowances for the week + remuneration amount

where:

  • normal ADF rate of pay for the week is the amount the Reservist would receive if he or she was still a member of the Permanent Forces and not incapacitated for service. The member's rank and pay group at the time of his discharge from the Permanent Forces is the basis for determining NE.  Any subsequent promotions obtained while a Reservist after discharging from the Permanent Forces do not count towards the calculation of NE.

  • pay-related allowances for the week is the amount of compensable pay-related allowances he or she would receive if still a Permanent Forces member and not incapacitated, as advised by Defence. 

  • Remuneration amount is a loading included in normal earnings to compensate a member for the non-salary benefits of being a full-time serving member.  It is only included in normal earnings where normal earnings are calculated by reference to a full-time ADF rate of pay and the person is no longer a full-time serving member.

5.6.1.1 

Example 1 – NE for current Reservist injured in PF

A currently serving Reservist transferred from the Permanent Forces to the Reserve service. They were injured in PF service but have only just become incapacitated as a result of the injury. The person discharged from the PF as a Corporal pay group 5 increment 1. At the date of their incapacity they had been progressed to a Warrant Officer Class 2 Pay Group 1, increment 0 in the Reserves.

NE = PF rate of pay as CPL 5/2 + remuneration amount (SAM has advised the person is entitled to incremental progression from a CPL5/1 to 5/2 at the date of the incapacity)

NE = $3135.85 (ADF pay for the week) + $158.16 (remuneration amount) = $3394.01 (weekly amount)