Understanding and Calculating PIAWE: A Guide for Workers and Professionals
At 365 Rehab, we believe that clarity empowers decision‑making. One crucial calculation in workplace injury compensation is the Pre‑Injury Average Weekly Earnings—commonly known as PIAWE. Derived from The calculation of Pre-Injury Average Weekly Earnings (PIAWE) is detailed in Part 10 of the Workers Compensation Guidelines (March 2021), understanding PIAWE ensures that compensation is fair, accurate, and compliant with official standards.
What Is PIAWE?
PIAWE reflects the average weekly earnings a worker received during the 52 weeks immediately prior to injury. It covers ordinary earnings—but explicitly excludes periods when the worker earned nothing, such as unpaid leave, unless otherwise indicated in the guidelines.
What Counts as “Ordinary Earnings”?
According to the guidelines, “ordinary earnings” include:
Monetary value assigned to any non‑monetary benefits received
Base rate of pay for standard hours
Over‑award payments, shift allowances, other allowances; piece rates or commissions
Bonuses and incentive payments—provided they’re non‑discretionary
Non‑Monetary Benefits: Including What’s Not Cash
The guidelines’ Sections 10.3 and 10.3.1 clarify how to treat non‑monetary benefits. If a worker received something like residential accommodation or another in‑kind benefit, its value must be converted into monetary terms and included in PIAWE. Essentially, you ask: “What would they have received in pay instead of that benefit?”
Special Categories: Apprentices, Trainees & Young Workers
Section 10.1 provides guidance for workers whose pay was set to increase within the 52‑week window—like apprentices or trainees. If a progression in pay was due, PIAWE should reflect that anticipated increase, not just what was actually earned before the injury.
Adjustments for Retained Benefits
Section 10.2 allows for adjustments to PIAWE if the worker continues to use a benefit after injury—or if a benefit was provided as compensation. In these cases, the calculation may need to be revised to ensure fairness and alignment with actual circumstances.
Putting It All Together: Key Principles
- Calculate the average weekly earnings across the 52 completed weeks prior to injury.
- Exclude any weeks where the worker earned nothing—unless directed otherwise by the guidelines.
- Include all “ordinary earnings,” inclusive of allowances, commissions, overtime, bonuses (if non‑discretionary), and monetized non‑monetary benefits.
- Adjust for expected pay increases if applicable to apprentices, trainees, or those on structured pay progressions.
- Factor in retained benefits or compensatory provisions that affect the actual post‑injury situation.
In essence, PIAWE ensures that injured workers receive a fair reflection of what they would have reasonably earned if the injury had not occurred. At 365 Rehab, we ensure that every compensation calculation is transparent, accurate, and aligned with best‑practice standards.
If you’d like help implementing this logic—such as in a calculator interface, a client portal, or a compensation breakdown document—our team is ready to support you. Just let us know how we can help.
If you have any questions, feel free to email us at info@365rehab.com.au or call us on 1300 742 365.
💡Pro tip: Keep all payslips, overtime records and allowances in one place before you begin your PIAWE calculations. Having accurate information ready to go can help you complete the process more smoothly and reduce the chance of errors.
