31.2.1 Calculation of core NWE: The basic formula

Subsection 8(1) of the SRCA says:

8(1) For the purposes of this Act, the normal weekly earnings of an employee (other than an employee referred to in Subsection (2)) before an injury shall be calculated in relation to the relevant period under the formula:

(NH x RP) + A

where:

NHis the average number of hours worked in each week by the employee in his or her employment during the relevant period.

RPis the employee's average hourly ordinary rate of pay during that period.

Ais the average amount of any allowance payable to the employee in each week in respect of his or her employment during the relevant period, other than an allowance payable in respect of special expenses incurred, or likely to be incurred, by the employee in respect to that employment.

This means that the NWE is normally to be set by the above-specified method of averaging income over a 'relevant period', to which are added the average amount of allowances also paid over that same 'relevant period'.

• For discussion of 'relevant period' see 14.2 and 31.2.4.
• For discussion of (NH x RP) – i.e. salary or earnings:

• In relation to members/ex members of full-time ADF see 31.2.5 and 31.2.6.
• In relation to members/ex members of the Reserve see 31.2.7 – 31.2.9.
• In relation to cadets, see 31.2.10.

• For a discussion of 'A' – i.e. allowances – see 31.11.