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6.3.27 How to Treat Commissions
Last amended: 8 December 2010
Entitlement to commissions is payment in return for labour, with the payment for that labour being paid by a periodic payment. These amounts are considered to be actual earnings and should be included in the calculation of the amount of compensation payable. For example, Bill works full time as a used car salesman and earns $649.66 per week. His NE as a Corporal is $1,124.65 per week. He has a top up entitlement of $474.99 per week. Once a month however, he receives commissions on the sales he has made for that month and for that week he earns $649.66 plus $586.20 in commissions. His commission should be averaged over the month in accordance with the policy dealing with fluctuating earnings, discussed in part 6.3.29 below.
A person may continue to have actual earnings even if they are totally incapacitated for work. This may the case for a person who has worked as finance broker and continues to receive trailing commissions. Trailing commissions should also be treated in accordance with the policy dealing with fluctuating earnings, discussed in part 6.3.29.