Section 132A (3)

This section relates to employees not in receipt of superannuation.

“Where a person to whom this section applies was not in receipt of a pension under a superannuation scheme on the commencing day, then, subject to this Division, the amount of compensation payable per week to the former employee is:

(a)the amount of compensation per week that would have been payable under section 132 if that section had applied to the former employee, less the amount per week that he or she is able to earn in suitable employment; or

(b)the amount of compensation per week that would have been payable under section 19 if that section had applied to the former employee, less an amount equal to 5% of his or her normal weekly earnings;

whichever is greater.”

This means that two calculations must be performed, and benefits paid according to the calculation which results in the greater weekly figure.

The calculation in accordance with the principles of section 132 is:

% NWE - AE = COMPENSATION

However, the calculation in accordance with the principles of section 19 is:

(75%NWE - AE) - an extra 5% NWE = COMPENSATION

The purpose of the extra 5% NWE

The greater figure from the two calculations is used to determine the employee's entitlement.