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3.3 Maximum and minimum compensation rates

Last amended 
20 May 2021

3.3.1 DRCA

These minimum and maximum compensation provisions are applicable only after the first 45 weeks of incapacity payments. Chapter 7 discusses 45 weeks/maximum rate compensation weeks.

Where a person’s rate of compensation for incapacity is less than a prescribed minimum amount, as defined in subsection 19(7), the amount is increased to the minimum earnings rate (subsection 19(6)) with additional amounts payable for prescribed dependents.  The minimum earnings provisions are applicable only if the client is not engaged in actual employment during the week.

Chapter 4 contains detail on the minimum earnings provisions.

Where a person’s rate of compensation for incapacity is greater than 1.5 times the Average Weekly Ordinary Time Earnings of Full-time Adults (AWOTEFA), the amount of compensation is reduced to the AWOTEFA rate.

Note - the AWOTEFA rates change every February and August. These rates can be found under the Statutory Rates page in CLIK.

3.3.2 MRCA

Where a person's normal earnings are less than the national minimum wage, section 179 prescribes the national minimum wage as the default NE for that person. This rate can be found under the Statutory Rates page in CLIK.

There is no maximum rate set for NE. Example 1- Increasing earnings to the national minimum wage

A Reservist has ADF earnings of $90 per week for one-day's Reserve employment, and civilian earnings of $400 per week (for 20 hours as a part-time console operator), their NE would be equal to $490 per week.  Section 179 dictates that this person's NE should then be increased to the national minimum wage.