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Mar 3, 2025 • 8 min read
PIAWE Explained: What Every Injured Worker Should Know
Unpack the concept of pre-injury average weekly earnings with us. Learn how PIAWE is calculated, and how it influences both your physical and financial recovery.
Written by: Eisabess Chee
If you’ve been injured at work, you’ll likely encounter the term “PIAWE” (pre-injury average weekly earnings). Simply put, PIAWE is the weekly average of what you earned before your injury, and it’s the basis for calculating the weekly payments you’ll receive while recovering.
This guide is designed to help injured workers and their support network navigate this important aspect of workers compensation claims with confidence.
What is PIAWE and Why Does It Matter?
PIAWE represents the average weekly earnings before an injury occurred. For injuries on or after October 21, 2019, weekly compensation payments are based on this amount.
Why this matters: PIAWE directly impacts the financial support available during the recovery journey. Accurate PIAWE calculations ensure fair compensation while the injured worker focuses on healing.
Getting Financial Support
Financial security is essential during recovery. Unless there’s a reasonable reason not to, the insurer must start making weekly payments within seven (7) days of being notified about an injury.
Initial payments are probably based on preliminary information. As more details become available, PIAWE might be reassessed, but the injured worker will always be entitled to any difference if the amount increases.
Understanding What Counts in PIAWE Calculations
What’s Included in Gross Earnings:
- Regular wages, including any paid leave and loadings
- Shift allowances, overtime, and other regular allowances
- Commission and piece rates
- The value of work benefits (like a company car) if they’re no longer accessible
- Income from all jobs if the person works for multiple employers
What’s Not Included:
- Compulsory superannuation contributions
- Any workers compensation payments already being received
- Work benefits still accessible after the injury
- Discretionary payments like unguaranteed bonuses
- Additional payments from the JobKeeper scheme
How is PIAWE Calculated?
The calculation method depends on when the injury happened.
For Injuries On or After October 21, 2019
The formula is simple:
- Gross earnings ÷ Relevant earning period (in weeks) = PIAWE
For Injuries Before October 21, 2019
PIAWE includes:
Ordinary earnings during the relevant period
Any applicable shift and overtime amounts
Understanding Relevant Earning Period in PIAWE
The “relevant earning period” is typically the 52 weeks before the injury. However, this period may be adjusted in several situations to ensure PIAWE fairly represents usual earnings.
The earning period may be adjusted in these situations (applied in this specific order):
- Employment less than 52 weeks:
- The period before employment started isn’t counted
- Significant change in earnings:
- If there was an ongoing and financially significant change in earnings (like a promotion, demotion, or change in working hours)
- The period is adjusted to start from the day this change took effect
- For example: If a promotion occurred three months before the injury, only those three months would be counted
- Pay period alignment (optional)
- This adjustment is only made if it benefits the injured worker
- Extended unpaid leave
- Any unpaid leave of 7+ days is excluded
- COVID-19 pandemic earnings reductions
- Specific pandemic-affected periods may be excluded
Minimum PIAWE Amount
Even if calculations result in a lower amount, PIAWE cannot be less than $155. This ensures a baseline level of support during recovery.
There’s also a maximum limit on weekly compensation amounts, which the insurer can explain.
How PIAWE is Determined: Two Ways
1. PIAWE by Agreement: The Faster Way to Start Payments
The injured worker and their employer can agree on a PIAWE amount, which speeds up the start of payments. This allows both parties to focus on what matters most: recovery and return to work.
PIAWE Agreements Timeframe
- By Day 1: Injury is reported to the insurer
- By Day 3: Insurer reaches out for information and explains the agreement option
- By Day 5: Employer submits the PIAWE Agreement Form
- By Day 7: Weekly payments begin based on the agreed amount
What’s Needed for Agreement Approval
- The PIAWE amount agreed upon
- The date of the agreement
- Worker details and claim information
- Employer information
- Supporting evidence like payslips or the employment contract
- Acknowledgment that both parties consent to the agreement
Changing the Agreement Later
If either the worker or employer later decides to withdraw from the agreement, they can do so by notifying both the other party and the insurer. The insurer will then:
Make a formal decision about PIAWE within seven (7) days
Notify everyone in writing
Adjust payments accordingly, including any back-payments that may be due
2. Insurer Calculation: When There’s No Agreement
If an agreement isn’t reached, the insurer will calculate PIAWE using information from both the worker and employer.
If information is missing: The insurer will use the best available information to set an interim rate so payments can begin promptly.
Ensuring Accurate Calcutations
To ensure an accurate PIAWE calculation, consider providing:
- Recent payslips
- Employment contract or Enterprise Agreement
- Records of work hours and leave
- Tax returns if relevant
- Details of any additional jobs
Indexation: Keeping PIAWE Payments in Line with Inflation
Indexation is an important process that adjusts workers compensation payments to keep pace with the rising cost of living. This ensures the value of payments doesn’t diminish over time due to inflation.
When Does Indexation Happen?
PIAWE amounts are indexed twice a year on specific review dates:
- April 1
- October 1
This indexation applies to all compensation periods following the first date of incapacity.
How Indexation Works
The process is straightforward:
- The existing PIAWE amount is multiplied by what’s called a “B/C indexation factor” (set by SIRA and available in the latest Workers Compensation Benefits Guide)
The result is then rounded:
For amounts less than $1,000: Rounded to the nearest dollar
For amounts $1,000 or more: Rounded to the nearest $10
Protection Against Reductions
If the indexation factor is less than 1 (which would reduce the PIAWE amount), the reduction won’t be applied to the worker’s payments. However, this reduction will be factored into future indexation calculations to ensure fairness over time.
Special Situations
Multiple Jobs
All earnings are combined to determine total PIAWE.
Apprentices, Trainees, or Young Workers
PIAWE will be updated as the person progresses through age or qualification stages.
Employment Less Than 4 Weeks
PIAWE may be based on what could have been expected to earn in the year after the injury.
Get Expert Guidance for Your Workers Comp Journey
Navigating the monetary aspects of workers compensation can be overwhelming, especially when you’re focusing on recovery. Here at AusRehab, we are committed to making your work rehab journey as stress-free as possible.
Our team of experienced compensation specialists can help ensure your PIAWE is calculated correctly, your payments are properly indexed, and you receive every dollar you’re entitled to.
Don’t leave your financial security to chance during this critical time. Contact AusRehab today for a free consultation to review your claim and receive the expert guidance you deserve.
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Eisabess Chee is a seasoned writer with over 8 years of diverse experience in education, journalism and marketing. At AusRehab, she oversees content creation through research, writing, editing, and the crafting of resources that tackle workers compensation and workplace injury. Eisabess also curates the AusRehab newsletter, ensuring it’s packed with valuable and well-researched insights.
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