New regulation to clarify COVID-19 and JobKeeper impacts on PIAWE and weekly payments
The Workers Compensation Amendment (COVID-19 Weekly Payment Compensation) Regulation 2020 commenced today. This Regulation clarifies how JobKeeper payments and other COVID-19 impacts on a worker’s earnings are treated in calculating a worker’s weekly payments and pre-injury average weekly earnings.
The changes mean that:
- In calculating PIAWE, an adjustment may be made to the relevant earning period if a worker has had a financially material reduction in earnings due to the pandemic.
- Only earnings for work performed may be included in the calculation of PIAWE.
- In calculating weekly payments, JobKeeper payments are included in the ‘current weekly earnings’ of a worker.
The Regulation also provides for a 10% uplift in recoverable legal costs under Schedule 6 of the Workers Compensation Regulation 2016.
SIRA’s Claims management guide has further information on how to apply the changes.