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Incapacity Policy Manual
5. Method of Calculating NE/NWE by Service Type
- 5.10 SRCA - Service giving rise to injury is Part-time Reserves – Employed or has employable skills
Date amended:
The following formula is applicable when the person:
Was injured in part-time reserve service
Is discharged from all forms of service
Is engaged in civilian work or has employable skills
NWE = Reserve pay and allowances + civilian pay and allowances
Where:
Reserve pay and allowances means the reserve pay and allowances the member would have received for the week if not incapacitated for work; and
civilian pay and allowances means the civilian pay and allowances that the member would have received for the week if not incapacitated for work.
5.10.1 Calculating ADF Reserve pay and allowances
The established method to calculate Reserve pay and allowance for a person who is considered incapacitated long-term is as per the method outlined in section 5.3.2.3 for serving members i.e. using an example period of 1 year prior to the injury or discharge, preferring the greater of the two. Additionally, the delegate has the discretion to use a different relevant period.
5.10.2 Calculating civilian pay and allowances
The method used to calculate civilian pay and allowances for a discharged member is as per the methods outlined in section 5.3 for serving members.
The sample period should consider both pre-injury and pre-discharge pay and prefer the greater of the two.
It is important that the same sample period i.e pre-discharge or pre-injury is used for both the reserve pay and allowances, plus civilian pay and allowances.
Once discharged from the ADF, the only mechanism for advancing the civilian component of NWE is by indexation using the WPI. Where a discharged client is still employed by the Commonwealth in their civilian capacity, NWE can only be advanced by WPI indexation.
5.10.3 Normal Weekly Hours
Normal weekly hours is equal to the person’s normal reserve hours plus their normal civilian hours.