PAWE Calculation in NSW CTP Claims: Understanding Your Weekly Payments

PAWE stands for Pre-accident Weekly Earnings. It is the gross (before tax) average weekly amount you were earning in the period leading up to your motor accident.

Under the Motor Accident Injuries Act 2017, the insurer uses your PAWE as the "baseline" to calculate how much you are paid each week while you are unable to work or are working reduced hours.

Your weekly payments are a percentage of your PAWE, subject to a statutory maximum cap. The percentages change over time:

• Weeks 1 – 13: You are generally entitled to 95% of your PAWE (less any current earnings).
• Weeks 14 – 52 (and beyond): The percentage typically drops to 80% or 85%, depending on whether you have total or partial capacity for work.

Because every dollar of your PAWE affects your weekly income for months or years, a calculation error by the insurer can result in significant financial loss over time.

The standard calculation involves averaging your gross earnings from all employment over the 52 weeks immediately preceding the date of the accident.

However, the calculation can become complex if:

• You were self-employed or a contractor.
• You had only recently started a new job or received a promotion.
• You had periods of unpaid leave or were between jobs during the 52-week period.
• You worked multiple jobs.

In these cases, specific rules under the SIRA Motor Accident Guidelines may allow for a more fair and accurate calculation period.

Insurers often make errors by failing to include overtime, bonuses, or by using the wrong averaging period. If you believe your PAWE is too low:

1. Request the calculation details: Ask the insurer for a breakdown of how they reached the figure.
2. Gather evidence: Collect payslips, tax returns, and employment contracts for the full 52-week period.
3. Request an Internal Review: Formally challenge the decision with the insurer.
4. Escalate to the PIC: If the insurer does not correct the error, you can apply for a Merit Review at the Personal Injury Commission.

If the insurer has issued a decision about your PAWE that you disagree with, or if you are self-employed and unsure how to prove your earnings, you should contact us immediately. We can review the insurer’s calculation and ensure your statutory benefits are maximized.