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Incapacity Policy Manual
5. Method of Calculating NE/NWE by Service Type
- 5.2 SRCA - Service giving rise to injury is Permanent Forces (PF) or Continuous Full-Time Service (CFTS)
Date amended:
The following formula is applicable when the person:
Was injured in PF or CFTS
Is currently serving
Current service is in the Permanent Forces or part-time Reserves
The basis for payment remains even after return to work as a part-time Reservist.
NWE = ADF rate of pay for the week + allowances for the week
where:
ADF rate of pay means the amount of pay the member would have received for the week as a PF or CFTS member if not incapacitated for service; and
Allowances for the week means the total compensable allowances that the member would have received for the week if not incapacitated for service – see section 4.6.
The formula for calculating NWE under section 8(1) relies on average weekly hours and pay rates, as Permanent Forces members (or those on CFTS) are not paid by the hour, and their salary does not vary, NWE is instead determined by their ADF salary as a full-time member (either in PF service or CFTS).
The military pay scales are used to establish the ADF pay (which, where applicable, includes Service Allowance).
5.2.1.1Example 1 – Calculating NWE for a PF memberA Permanent Forces member was injured in service as a Petty Officer Pay Group 2, increment 2 (i.e. PO 2/2) in August2016. Their NWE is equal to their military pay (including service allowance) they were earning as a PO 2/2 plus allowances. In this case the person was also receiving the Maritime Disability Allowance – Major Fleet Unit). NWE = $1500.40 (ADF pay for the week) + $224.98 (Allowances for the week) = $1725.38 per week (as per pay scales in force at 05/11/15) |