﻿ 7.3 Calculating maximum rate (compensation) weeks | Military Compensation MRCA Manuals and Resources Library, Incapacity Policy Manual, 7. Maximum Rate Weeks, Hours Used in Calculations and Part Week Calculations

# 7.3 Calculating maximum rate (compensation) weeks

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Last amended
10 August 2017

The underlying principle is that each hour for which compensation is payable either in full i.e. when the person is not working or by way of a payment when a person is in employment (employment at the same level but less hours or in employment at a lower level) is counted towards the calculation of maximum rate compensation weeks.

In practice delegates would not be required to manually calculate maximum rate (compensation) weeks but should be aware of whether a person is considered continuously incapacitated for a period of incapacity.

#### Example 1 – Person continuously incapacitated for a period

During a period of incapacity where the person is not working and incapacity is being paid, the entire period is counted toward the maximum rate (compensation) weeks.

Where:

Normal Weekly Hours (NWH) are 37.5;

Maximum rate compensation weeks = 37.5 x 45 = 1687.5 hours;

Person has been discharged;

The person is incapacitated for the period 9/1/20017 to 31/1/20017 and returns to their pre-incapacity work on 1/2/2017;

That person was incapacitated for 17 days; and have used 17 x 7.5 = 127.5 hours from their 1687.5 hours (maximum rate compensation weeks);

Their remaining maximum rate compensation weeks are equal to 1687.5 - 127.5 = 1560 hours.

#### Example 2 – Person is in employment at pre-injury level but not working their full pre-injury hours

If a person is able to work 20 hours in a week, at their pre-incapacity level and incapacity paid for the remaining period of a week up to their normal weekly hours (17.5 hours if NWH are 37.5) then only the remaining hours are included in the calculation of maximum rate compensation weeks.

NWH are 37.5 hours per week;

Maximum rate compensation weeks = 37.5 x 45 = 1687.5 hours;

A former Sergeant with an NE (including remuneration allowance) of \$1000 per week is medically discharged on 31/12/2016;

The former Sergeant commences part time work (20 hours per week) on 1/1/2017 as a Consultant earning \$600 per week;

On a pro-rata basis the former Sergeant has a higher rate of pay (\$30 ph compared to \$26.67 ph) as a Consultant. So it can be said that she is working at a higher level than she was prior to discharge and becoming incapacitated;

Therefore only 17.5 hours per week counts towards the maximum rate compensation weeks.

If the former Sergeant’s circumstances remain unchanged she will have 96.43 maximum rate compensation weeks, as only 17.5 hours per week are being counted towards her maximum rate compensation weeks.

#### Example 3 – person is in employment but at a lower level then their pre-injury employment and not working their pre-injury hours

If a person is able to work 20 hours per week and that 20 hours is at a lesser level than their pre-injury or pre-incapacity earnings, we count the entire period (37.5 hours if that is NWH) in the calculation of maximum rate compensation weeks.

Normal Weekly Hours (NWH) are 37.5;

Maximum rate compensation weeks = 37.5 x 45 = 1687.5 hours;

A Sergeant has an NE (including remuneration allowance) of \$1000 per week and is medically discharged on 31 December 2016. The former Sergeant commences part time work (20 hours per week) as a Car Park Attendant on 1 January 2017 earning \$400 per week.

As they are employed at a lower level than their pre-injury employment and the incapacity payment they receive is for every hour of the week, 37.5 hours per week are counted towards the calculation of their maximum rate compensation weeks.