Subsection 19(3) of the SRCA and section 131 of the MRCA provides that after 45 weeks of incapacity the compensation entitlement are multiplied by an adjustment percentage. The value of this percentage is dependent on the % of NWH actually worked in that week.
The normal weekly hours for which the person is employed is relevant to the operation of Section 19(3)(b)-(f) of SRCA and section 131(2)(b)-(f) of MRCA. These subsections provide for a higher rate of total earnings (earnings from employment plus compensation) where the person is engaged in actual hours of employment during a week.
The formula for the post-45 week entitlement is:
(adjustment percentage x NWE or NE) – AE
After 45 weeks of incapacity compensation, the entitlement of a person who is not working at all (0% of normal weekly hours) because of the injury, reduces to 75% of the person’s NWE/NE.
The following table gives the adjustment percentage:
Percentage of normal weekly hours (NWH) being worked: | Adjustment percentage: |
Nil | 75% |
25% or less | 80% |
More than 25 % but not more than 50% | 85% |
More then 50% but not more than 75% | 90% |
More then 75% but not more than 100% | 95% |
100% or more | 100% |
The intent of this is to provide a financial reward, or incentive, for a return to full working hours by a person.
Where a person is participating in an approved Apprenticeship, they are considered to be working full-time hours, and there is no requirement to consider it as 'study' in order to base payments on 100% of NE for the duration of the apprenticeship. The person's actual earnings continue to be held as per normal incapacity calculations.