Pre-injury average weekly earnings: guide for injured workers

Pre-injury average weekly earnings (PIAWE) is the weekly average of a worker’s gross earnings before their injury, and it’s the number insurers use to calculate your weekly compensation payments. Get it wrong and you could be underpaid for months.

Three things to know right now:

• What’s included: PIAWE covers gross earnings, meaning base pay plus regular overtime, shift loadings, allowances, commissions, and the monetary value of board and lodging where applicable.
• Minimum and maximum limits exist: NSW sets a statutory minimum PIAWE by regulation, and caps apply at the upper end. Check your state regulator for current figures.
• Act immediately: Gather your payslips, payroll summaries, and tax records from the 52 weeks before your injury, then contact your insurer or scheme agent.

Key takeaways

PIAWE is the weekly average of your gross earnings before injury, calculated over the 52 weeks prior to your injury date for most post-21 October 2019 claims, and it directly determines the weekly compensation you receive.

Table of Contents

• What pre-injury average weekly earnings actually means under Australian law
• What counts as gross earnings for your PIAWE calculation
• How to calculate your PIAWE step by step
• Special cases: multiple employers, casual work, and irregular earnings
• When payments start, what the caps mean, and how PIAWE drives your weekly rate
• What to do if you disagree with the insurer’s PIAWE figure
• Official calculators and regulator guidance you should use
• Why getting PIAWE right matters more than most workers realise
• How Carelawyers can help with your PIAWE calculation and dispute
• Sources

What pre-injury average weekly earnings actually means under Australian law

PIAWE is the legal benchmark that converts your working income into a weekly compensation figure. Without it, insurers have no basis for calculating what you’re owed while you’re off work.

For workers injured on or after 21 October 2019, PIAWE means the weekly average of the gross earnings received by the worker in any employment in which the worker was engaged at the time of injury. That definition comes directly from SIRA, the State Insurance Regulatory Authority in NSW, and it marks a deliberate simplification.

Before that date, the calculation was governed by section 44C of the Workers Compensation Act 1987 and relied on Schedule 3 methods, which involved more complex apportionment rules, particularly for workers with multiple employers. The post-2019 approach replaced most of that complexity with a single 52-week gross earnings average for the majority of workers.

The practical difference is significant. Under the older rules, disputes about which earnings period applied and how to weight different income sources were common. The 2019 change was designed to reduce that uncertainty by anchoring the calculation to one clear period and one clear measure: total gross earnings over the 52 weeks before injury, divided by 52.

Rules do vary by state. NSW workers are primarily governed by SIRA and icare guidance. Victorian workers fall under WorkSafe Victoria. Western Australian workers are covered by WorkCover WA. If you’re outside NSW, check your state regulator’s specific rules, because the formula and caps differ.

What counts as gross earnings for your PIAWE calculation

The word “gross” carries real weight here. It means before tax, and it means more than just your base salary.

Typical inclusions:

• Ordinary time pay (your base hourly rate or salary)
• Regular overtime (if you worked it consistently, it counts)
• Shift loadings and penalty rates
• Allowances that form part of your regular remuneration (tool allowances, site allowances)
• Commissions and piece rates
• The monetary value of board and lodging provided by the employer, where relevant

Common exclusions:

• Salary-sacrificed amounts (superannuation contributions made through salary sacrifice may be excluded depending on how your arrangement is structured)
• One-off discretionary bonuses not tied to regular performance
• Reimbursements for out-of-pocket expenses (fuel, travel costs paid back to you)

The ABS Survey of Average Weekly Earnings defines average weekly earnings as a gross, before-tax measure across employee jobs nationally. That national figure is useful context for understanding what “gross” means, but it has no role in your individual PIAWE calculation. Your personal payroll records are what matter.

Pro Tip: If you regularly worked overtime or received shift loadings, flag this explicitly with your payroll department and your insurer. These amounts are easy to miss when an employer provides a summary figure rather than a detailed breakdown. Regular additional earnings that were predictable and consistent should be included, not treated as one-offs.

How to calculate your PIAWE step by step

The standard formula for post-21 October 2019 injuries is straightforward:

PIAWE = Total gross earnings in the relevant period ÷ Number of weeks in that period

For most workers, the relevant period is the 52 weeks immediately before the date of injury. According to icare’s PIAWE fact sheet, PIAWE is generally the weekly average of a worker’s gross earnings over those 52 weeks.

Here’s a worked example:

The denominator changes when the relevant period is shorter than 52 weeks. If you were employed for only 30 weeks before your injury, the calculation uses 30 as the denominator, not 52. Similarly, if you took a long period of unpaid leave during the 52 weeks, those weeks may be excluded from the denominator, which can actually increase your PIAWE by removing low-earning weeks from the average.

Rostered patterns matter too. A worker on a rotating roster who works more hours in some fortnights than others should have all rostered earnings captured across the full period, not just a snapshot of a typical fortnight.

Special cases: multiple employers, casual work, and irregular earnings

Not everyone has one employer and a steady weekly pay cheque. If your situation is more complicated, here’s how it typically works.

For workers with multiple jobs at the time of injury:

1. Identify every employment in which you were engaged at the date of injury.
2. Calculate the gross earnings from each employer separately over the relevant period.
3. Add the totals together, then divide by the number of relevant weeks to get your aggregate PIAWE.
4. For pre-2019 injuries, Schedule 3 of the Workers Compensation Act 1987 governs how earnings from multiple employers are apportioned. Check SIRA’s guidance for the specific method that applies.

Evidence checklist for casual or irregular workers:

• All payslips covering the 52 weeks before injury (or the full employment period if shorter)
• Timesheets and rosters showing hours actually worked
• Annual tax return and payment summaries (group certificates)
• Bank statements showing regular deposits from each employer
• Employment agreements or letters of engagement confirming your role and pay structure

Casual workers often find their PIAWE is lower than expected because a few quiet weeks drag down the average. If your work was genuinely irregular due to seasonal demand rather than personal choice, document that context clearly. Seasonal patterns are a legitimate factor in how the relevant period is assessed.

Workers injured on or after 21 October 2019 can also enter a voluntary PIAWE agreement with their employer, which, if approved by the insurer, locks in an agreed amount and can speed up payments considerably. This is worth exploring if you and your employer agree on the earnings figure and want to avoid a drawn-out calculation process.

When payments start, what the caps mean, and how PIAWE drives your weekly rate

Timing matters as much as the calculation itself. Insurers are generally required to start provisional weekly payments within seven days of notification of an injury, unless there is a reasonable excuse for delay. Those provisional payments can be reassessed once the insurer has gathered full payroll information.

The PIAWE figure then feeds directly into your weekly payment rate. WorkSafe Victoria explains that weekly payments can be a high proportion of PIAWE for the early weeks of a claim, with payment rates potentially reaching 95% of PIAWE in the first 13 weeks, subject to a statutory maximum.

In NSW, a statutory minimum PIAWE applies. The icare fact sheet references a minimum of $155, set by regulation, meaning no worker’s PIAWE is calculated below that floor regardless of their actual earnings. A statutory maximum also applies at the upper end. Both figures are subject to change, so verify the current amounts directly with SIRA or icare before relying on them.

The interaction between your PIAWE and the applicable percentage rate is where the real money sits. A worker whose PIAWE was incorrectly calculated at $1,100 receives $1,045 per week. That $313.50 weekly gap compounds quickly over a long claim.

For a fuller picture of how weekly payment rates and durations work in NSW, the workers comp weekly payments process guide explains provisional payments and how PIAWE feeds into your entitlement calculations.

What to do if you disagree with the insurer’s PIAWE figure

Disputes about PIAWE are more common than most workers expect. Many arise not from bad faith but from incomplete payroll records or missed regular payments when the insurer first calculates the figure.

Insurers and scheme agents are responsible for ensuring PIAWE calculations are accurate, and icare publishes guidance and calculators for both workers and employers. That responsibility sits with them, but you need to give them the right information to work with.

Evidence to gather before challenging a calculation:

• All payslips for the 52 weeks before injury, including any showing overtime or loadings
• Payroll summaries or employer-issued earnings statements
• Tax returns and ATO income statements for the relevant financial year
• Timesheets and rosters
• Your employment agreement or contract
• Bank deposit records showing regular payments from your employer
• Any correspondence with your employer or payroll team about your earnings structure

Dispute pathway:

Raise the discrepancy with your insurer in writing first. Ask for a written breakdown of how your PIAWE was calculated, including which earnings components were included and which were excluded. If the insurer’s response doesn’t resolve the issue, request a formal internal review.

If internal review doesn’t produce a satisfactory outcome, you can escalate to the scheme agent or regulator. In NSW, SIRA handles complaints and can direct insurers to recalculate. For formal disputes, the Personal Injury Commission (PIC) is the tribunal with jurisdiction over workers compensation disputes in NSW.

Getting legal advice early in this process is worth considering. Many underpayment situations stem from payroll records that are incomplete or formatted in a way that obscures regular additional earnings. A lawyer can identify those gaps and present the evidence in a form the insurer can act on. See the workers compensation entitlements checklist for a full list of documents to prepare.

Pro Tip: Document every conversation with your insurer. Note the date, the name of the person you spoke with, and what was said. Written records of verbal conversations, sent by email to the insurer after the call, create a contemporaneous record that is difficult to dispute later.

Official calculators and regulator guidance you should use

These are the authoritative sources for checking your PIAWE calculation and finding current minimum and maximum figures:

• icare PIAWE fact sheets and calculators: icare publishes both a detailed fact sheet and a quick reference guide, plus online calculators for workers and employers. Start here for NSW claims.
• WorkSafe Victoria PIAWE page: Includes an official PIAWE estimator for Victorian workers and explains how payment rates apply to the PIAWE figure.
• WorkCover WA explanatory guide: Covers calculation methods for WA workers, including the treatment of board and lodging and maximum/minimum rates. Available on the WorkCover WA website.
• ABS Average Weekly Earnings methodology: Useful for understanding what “gross average weekly earnings” means at a national statistical level, but not a substitute for your personal payroll calculation.

When using any online estimator, always enter gross (pre-tax) figures and include all regular additional earnings. An estimator fed net pay or base salary only will understate your PIAWE. If you’re unsure which figures to enter, contact your insurer or scheme agent for an official assessment rather than relying solely on an online tool.

Why getting PIAWE right matters more than most workers realise

The financial consequences of an incorrect PIAWE calculation are rarely obvious at the start of a claim. Weekly payments feel like a temporary bridge, and most workers assume the insurer has done the arithmetic correctly.

What I see repeatedly is that the gap between a correct PIAWE and an underestimated one is not a rounding error. It’s the difference between covering rent and not covering rent. Over a six-month claim, that gap represents thousands of dollars.

The workers most at risk are those with variable earnings: casuals, shift workers, commission-based employees, and anyone who worked across two jobs. Their income looks irregular on paper even when it was entirely predictable in practice. Documenting that predictability, through rosters, timesheets, and bank records, is the work that turns a disputed calculation into a settled one. For real examples of how PIAWE errors lead to underpayment, the underpaid injury claim examples page shows how these situations play out.

*— Daniel

How Carelawyers can help with your PIAWE calculation and dispute

Getting your PIAWE right from the start is the single most effective thing you can do to protect your weekly income during a workers compensation claim.

Carelawyers works directly with injured workers in NSW to review PIAWE calculations, identify missed earnings components, and challenge insurer figures that don’t reflect your true pre-injury income. Unlike larger firms where your file moves between case managers, you speak directly with a lawyer who knows your claim. The firm operates on a no win, no fee basis for workers compensation matters, so there’s no upfront cost to getting a professional review of your calculation.

If you’ve already received a PIAWE figure from your insurer and something doesn’t look right, or if you’re just starting a claim and want to make sure the calculation is done correctly from the outset, contact Carelawyers for a free initial assessment. Start with the workplace injury claim process guide to understand where PIAWE fits in the broader claim, then reach out to discuss your specific situation.

Sources

For NSW workers, SIRA and icare are the primary authorities. The SIRA PIAWE glossary page gives the statutory definition, while icare’s calculating PIAWE page provides fact sheets, quick reference guides, and online calculators. For pre-2019 injuries or multiple-employer situations in NSW, the SIRA PIAWE calculation page covers Schedule 3 methods.

Victorian workers should go directly to WorkSafe Victoria’s PIAWE page, which includes the official estimator and explains how payment percentages apply. Western Australian workers should consult the WorkCover WA explanatory guide, which covers the PIWRI approach and state-specific minimum and maximum rates.

The ABS Average Weekly Earnings methodology is worth reading if you want to understand what national gross earnings averages represent, but it has no direct role in an individual PIAWE calculation.

Statutory minimums and maximums change periodically. Always verify current figures on your state regulator’s website rather than relying on figures quoted in articles, including this one.

This article provides general information about pre-injury average weekly earnings in Australia and is not a substitute for legal or professional advice. Compensation rules vary by state and individual circumstances. Confirm current figures and your specific entitlements with your state regulator or a qualified legal adviser.

• PIAWE fact sheet — PIAWE overview (icare PDF)
• Calculating PIAWE | icare
• Average Weekly Earnings, Australia methodology, May 2025 | ABS
• Pre-injury average weekly earnings — WorkSafe Victoria

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