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7.11 Compensation for Part of a Week
When a person is incapacitated for part of a week or their incapacity falls over a period of a whole week/s plus a part of a week i.e. a week and 1 day, then compensation is calculated using the following formula:
This formula has the effect of applying a pro-rata to the amount of compensation. Though we consider the person’s NWE/NE and AE in terms of a week the resultant compensation is only paid for the part of the week that they are incapacitated for i.e. 1/5 of a week.
This part week compensation formula is only applicable for finite periods of incapacity i.e. the person does not have an ongoing incapacity and does not receive an ongoing incapacity payment. This formula is not applicable if the person has an ongoing incapacity and receives an ongoing payment but has taken a day/s off due to their condition during that same period of incapacity.
The formula for compensation for a part week is contained in Section 196 of the MRCA.
Although not legislated under the SRCA, the same formula is used to calculate compensation for part of a week. This method is in line with how compensation is calculated for a part of a week when calculating maximum rate compensation weeks under section 19(2)(C).
A former Permanent Forces member paid under the MRCA is prevented from working for one day due to a simple medical procedure (related to their accepted condition). The person does not have an ongoing incapacity and does not receive an ongoing incapacity payment.
The person usually works 5 days per week earning $25 per hour or $200.00 per day i.e. 8 hours per day. They also receive an MSBS Superannuation pension equal to $408.30 per week.
Normal Earnings: $1,265.00
Remuneration Amount: $158.16
Total = $1,423.16
Actual Earnings are: $800.00 (32.00 hours)
As a former Permanent Forces member normal weekly hours (NWH) are 37.5 in accordance with subsection 132(2).
The adjustment percentage is 95% as the person is still able to work 32 hours in the week.
1/5 x ((95% of $1,423.16) - $408.30 - $800.00) = $28.74