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33.1 A Higher Rate of Compensation is Paid During the First 45 Weeks After Injury

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It is important to determine whether the period of incapacity under investigation is within the first 45 weeks during which the client has been incapacitated because a higher weekly rate of compensation is paid during this period.

This results from the operation of Ss19(2)-(2D) of the SRCA which provides that compensation during 'maximum rate compensation weeks' is NWE – AE.

With the insertion of S19(2A) into the Act on 1 April 2002, the period is actually calculated on an hourly basis and comprises 45 times the employee's 'normal weekly hours'.

After the first 45 weeks, weekly compensation is paid under S19(3), which sets a rate of 75% of NWE (this may be increased if the client undertakes actual hours of employment during the week).

See chapter 34 about how to make payments after 45 weeks.

Note: The rate of weekly payment during the first 45 weeks of incapacity may also be affected by other factors such as receipt of superannuation and the maximum rate of compensation set by S19(5).

  • Superannuation issues are discussed at chapter 37.
  • Maximum rate of compensation payable is discussed at 35.1.
  • Minimum payment and statutory rates are discussed at chapter 36.

See also 'Calculation Period' at 33.3, which discusses when a week of incapacity should commence and how to calculate entitlement when the client's circumstances change during a week.