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7.4 Payments received in service

Last amended 
10 August 2017

7.4.1 SRCA

The period for which a person has received incapacity payments while in service are counted toward the person’s maximum rate compensation weeks.

Any weekly incapacity payments made to serving Permanent Forces members will normally be made in respect of a medical downgrading, resulting in loss of pay level, or for the loss of allowances due to an inability to perform a certain activity or function. A week for PF members is taken to be 7 days.

7.4.2 MRCA

The calculation of maximum rate weeks is only started once the person has discharged. Any periods for which the person was incapacitated in service (and received payment) does not count toward the first 45 weeks.

7.4.3 SRCA only – Sick leave in service Prior to 1 July 2011

For incapacity claims received prior to 1 July 2011, advice was sought from Defence on the number of days the person took as sick leave from service due to the injury or illness. The amount of sick leave was then counted toward the person’s calculation of maximum rate compensation weeks. 

Advice from the respective service personnel authority will normally express time off in terms of days or weeks. A week is taken to be 7 days. Any remaining days after conversion to weeks should be expressed as a percentage of a week (e.g. 2 days – 2/7 – equals 28.57% of a week). On and after 1 July 2011

For claims for incapacity payments received on or after 1 July 2011, there is no longer a requirement to seek information about the amount of sick leave taken from service due to an incapacity. This is because the member continued to receive their normal pay while they were on sick leave. The time taken off work due to an incapacity, while still in service, should not be included in the calculation of maximum rate compensation weeks.

A week only counts as a maximum rate compensation week where compensation has been paid (or will be paid) under section 19 of the SRCA. Compensation will only be paid for periods when the discharged former member actually experienced a loss of pay.

Compensation paid for lost allowances or loss of rank and pay level due to an injury or illness must still be counted in the calculation of maximum rate compensation weeks. However, periods when the member continued to receive their normal pay, including allowances, when on sick leave should not be counted.

7.4.4 Discharged full-time members - time off after discharge

On occasions, a person will also claim for periods of intermittent incapacity as short as a day or an hour or two for attendances for medical treatment or when they are unable to attend work.