“Where, as a result of an increase in the amount of a former employee's normal weekly earnings, the amount of compensation payable to the former employee under subsection (2) or (3) is less than 70% of those increased normal weekly earnings, that amount of compensation shall be increased, or further increased, as the case requires, until it is equal to 70% of those increased normal weekly earnings.”
This section deals with increases in NWE. Where NWE increases and an employee is on 70% of his or her NWE, the compensation benefit will increase.
However, for employees whose benefit is over and above the 70% mark and has been frozen, benefits will only rise when the amount they are receiving becomes equal to or less than 70% NWE. At this time, their benefits will increase to 70% NWE and be updated accordingly each time NWE increases, for as long as they are entitled to incapacity benefits.
The NWE record must be monitored and updated on PRACSYS, as sooner or later the NWE will gradually 'catch up' to what the former employee is being paid.
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Example |
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An employee is in receipt of incapacity benefits equivalent to 78% of his NWE on 01/12/1988. This amount does not alter (section 132 (3) refers). |
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In the next 3 years, his NWE rises by 8%. No adjustments are made to the employee's compensation payment as each rise occurs. |
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After the third year of receiving compensation payments, the employee's benefit reflects 70% of his NWE. |
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Any further rises in NWE after that time will be reflected in the employee's payment, as he is now receiving 70% of his NWE. |