Overtime and Shift Allowances

Updated 26/06/2023

This information page provides the criteria for the inclusion of overtime and shift allowances in the calculation of a worker's pre-injury average earnings.

The Workplace Injury Rehabilitation and Compensation Act 2013 provides for the inclusion of regular overtime and shift allowances in the calculation of pre-injury average weekly earnings (P.I.A.W.E.).

The legislation allows for regular overtime and shift allowances to be utilised in the calculation of a worker's weekly compensation payment for the first 52 weeks of paid or payable compensation.

For overtime and shift allowances to be included in the calculation of weekly payments of compensation to a worker all of the following criteria must be met:

(a) the worker carried out shift work that attracted a shift allowance and/or worked overtime during the preceding 12 months prior to the injury;

and

(b) it is likely that the worker would have carried out shift work attracting a shift allowance at any time during that first 52 week period if not for the incapacity resulting from, or materially contributed incapacity resulting from, or materially contributed to, by the relevant injury or it is likely that the worker would have worked overtime if not for the incapacity resulting from, or materially contributed to, by the relevant injury.

It should be noted that in the first 13 weeks of incapacity, the maximum rate of weekly earnings payable is 95% of the workers P.I.A.W.E. or twice Victoria's average weekly earnings currently $2150; whichever of the lesser will be paid.

After 13 weeks the maximum rate of weekly earnings payable is 80% of the workers P.I.A.W.E. or twice Victoria's average weekly earnings currently $2150 whichever of the lesser will be paid.

After the first 52 weeks weekly payments of compensation will not include regular overtime and shift allowances.

For further information, please contact CPSU Victoria's WorkCover officer via contact page.

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