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Incapacity Handbook
31.2 Calculation of NWE
- 31.2.8 NWE Summary by category of client - Part-time Reservist (Discharged)
External
1.NWE is :
(average reserves earnings & allowances) + (average civilian earnings & allowances)
at date of discharge
- see 31.9.2 to 31.9.4 for guidance re: averaging reserves income
- read all of 31.10 re: averaging civilian income
- where using the averaging method in 31.10.2 for averaging civilian earnings (i.e. 'Option A'), delegates should obtain civilian pay slips or other documentary evidence to confirm the client's earnings or have reference to published civilian pay scales whichever is appropriate.
2.If the client was also required to work regular overtime, the NWE is:
(average reserves earning & allowance) + (average civilian earning & allowance + average overtime)
at discharge
3.Alternatively, where the client had no civilian income (or only a small part-time income), NWE = (7 x Reserves daily rate for rank/pay level) i.e. rate at discharge.
- See 31.9.1 for more guidance on this method.
4.Adjust the NWE annually, after discharge, in line with the Wage Cost Index.
- Actual amendments to former pay rates are no longer relevant.