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Incapacity Handbook
31.1 Overview of Normal Weekly Earnings ('NWE')
- 31.1.2 Overview - The basis of the NWE calculation
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Subsection 8(1) specifies a formula for calculating NWE which can be paraphrased as:
(average weekly hours worked x average hourly rate) + allowances
Note: This calculation is dealt with in more detail and with more exactness at 31.2.
Furthermore, Subsection 8(2) provides a second formula for additional NWE in respect of those clients 'required to work overtime on a regular basis' i.e.:
(average hours of overtime per week x average hourly overtime rate)
Note: This calculation is dealt with in more detail and with more exactness at 31.1.3
Both of the above calculations are based on averages (of hours, allowances etc.) taken during a 'relevant period'. The term 'relevant period' is defined by Section 9.
This issue is dealt with in more detail at 14.2 and 31.2.4.
Calculations of NWE for reservists are conducted on the same basic principles as above, but differ from those of full-time members in that they are have two components, i.e. part-time reserves earnings plus earnings from civilian work also.