Normal Weekly Earnings (NWE) provide the basis for determining an employee's compensation entitlement while he or she is off work, or back at reduced hours or work capacity.

NWE is calculated under:

  • section 8 (normal weekly earnings);

  •        sections 8 (1) to (5) – initial NWE calculations.
  •        sections 8 (6) to (9) – variations (increase or decrease) to initial NWE.
  •        section 8 (10) –correctional adjustment to NWE.

The general principle to calculating NWE is that it should equal what the employee would have been paid had the injury not occurred.

In then updating NWE, the legislation does not intend that an exact dollar for dollar payment be made.  Rather, broad application of earnings is applied to ensure that any relevant changes are reflected generally in the employee's NWE.