Post-accident wage growth
Does a pay rise or promotion after the accident change CTP weekly payments?
It may change post-accident earnings, but it does not automatically rewrite PAWE
A pay rise or promotion after the crash can change the gross earnings actually received and may affect the work the insurer says you can perform. Report the new rate, hours and duties immediately and request a revised week-by-week schedule. PAWE is ordinarily based on pre-accident earnings under Schedule 1. A later promotion does not automatically become PAWE, although different rules and evidence may be relevant to apprentices, trainees, young people or a pre-accident change already underway. Future lost promotion is a separate damages issue.
The same event can affect several different questions. A general award increase may raise current wages; a promotion may change duties and capacity; a pre-arranged progression may be relevant to pre-accident evidence; and a lost future opportunity may be considered in a damages claim. They should not be combined into one unparticularised “pay rise” argument.
Section 3.18 requires immediate notice of changes in employment earnings. The insurer can recalculate weekly benefits using actual post-accident earnings or a changed capacity figure, but must apply the correct entitlement period and explain the effective date.
Reviewed by Herman Chan, Stephen Young Lawyers
How does a post-accident increase affect actual earnings?
Provide the pay-rise letter, enterprise or award notice, promotion agreement and payslips before and after the change. Identify whether the increase is hourly rate, ordinary hours, overtime, allowance, commission or a one-off bonus. The gross amount and covered pay period matter more than the bank deposit date.
If the claimant works reduced hours at a higher rate, actual earnings may rise without full recovery. The weekly formula should still compare the correct pre-accident figure with the greater of actual earnings or capacity. A higher hourly rate does not prove the person can work the pre-accident hours or duties.
If the promotion adds physical, cognitive or supervisory demands, update the treating practitioner with the real duty description. The promotion may be evidence of capacity for some work, but its sustainability and accommodations should be recorded accurately.
Can a later pay rise be added to PAWE?
PAWE is calculated under Schedule 1 using earnings before the accident and specified exceptions. A pay rise occurring only after the accident is not automatically inserted into that historical figure. Do not project a later increase backwards without a statutory or evidentiary basis.
A different issue arises where a significant pre-accident change had already resulted in the person regularly earning, or becoming entitled to earn, more. Schedule 1 clause 4(3) identifies examples such as a promotion, move to full-time work or performance-based pay increase. Apprentices, trainees and certain young people also have a specific progression rule in clause 6.
Ask the insurer to identify whether it treats the event as a PAWE matter, actual post-accident earnings, capacity or indexation. Section 3.22 separately provides statutory indexation after the first entitlement period; that is not the same as inserting a personal promotion into PAWE.
What if the accident caused a promotion to be lost?
A claimed lost promotion may be relevant to future economic loss in an eligible common law damages claim. It is not automatically part of weekly statutory benefits. The evidence should show a real opportunity, likely timing, selection criteria, salary difference and how the injury affected the chance.
A manager’s statement, completed training, prior acting duties, application records and comparable progression may be more useful than a general expectation. The law does not require certainty about the future, but speculation without a factual basis is weak.
Keep the weekly-payment review and damages evidence separate. Correcting actual post-accident earnings does not establish damages eligibility, fault, non-threshold injury or the value of future loss.
Practical next steps
Record a pay rise or promotion correctly
Identify which legal input the change actually affects.
Keep the written pay change
Record rate, duties, hours, effective date and whether the change was pre-arranged.
Notify the insurer
Provide the first payslip and written notice of changed earnings.
Check the weekly recalculation
Confirm actual earnings, capacity and the effective week.
Separate any PAWE argument
Identify a pre-accident statutory basis rather than relying on the later event alone.
Preserve future-loss evidence
If an opportunity was lost, keep the concrete promotion and earnings material for damages advice.
Evidence
Pay-rise and promotion checklist
The records should show timing, amount, duties and legal purpose.
- Pay-rise, award or promotion letter.
- Payslips immediately before and after the change.
- Old and new role descriptions and hours.
- Evidence the change was arranged before the accident, if alleged.
- Training, acting-role or performance records.
- Certificates of Fitness addressing changed duties.
- Insurer recalculation and capacity decision.
- Future-loss evidence for any separate damages claim.
Common pay-rise mistakes
- Do not automatically insert a post-accident increase into PAWE.
- Do not treat a higher hourly rate as proof of full hours or capacity.
- Do not confuse statutory indexation with a personal promotion.
- Do not double-count a pay increase as both actual earnings and a separate weekly loss.
- Do not assume a lost promotion creates damages entitlement without the separate requirements.
Timing
Report the effective date promptly
The insurer needs the change before the next weekly calculation.
- Notify the insurer immediately of changed employment earnings.
- Keep the effective date and first affected pay period.
- Check any revised amount or capacity decision when received.
- Preserve review rights even while awaiting later promotion documents.
Frequently asked questions
- Does a general award increase reduce my weekly payment?
- It may increase actual post-accident earnings and affect the calculation. The insurer should show the gross amount, effective week and statutory formula.
- Can a promotion after the accident increase PAWE?
- Not automatically. PAWE generally uses pre-accident evidence and statutory exceptions. A later event alone is not enough.
- What if the promotion was agreed before the crash?
- Keep the written arrangement. It may be relevant to the applicable Schedule 1 method, but the precise facts and provision must be assessed.
- What if I accept a promotion with reduced hours?
- Report the rate, duties and actual hours. Higher rate and reduced capacity can coexist, and the weekly schedule should reflect the correct figures.
- Is a lost promotion part of weekly benefits?
- Usually it raises a different future-economic-loss question in an eligible damages claim. It should not be treated as an automatic PAWE adjustment.
- Can the insurer recover an overpayment after a pay rise?
- A changed earnings figure can lead to recalculation. The insurer should provide the legal basis and week-by-week amount before recovery is accepted.
Related NSW CTP guides
Official sources
- Motor Accident Injuries Act 2017 (NSW), current in-force version
- Motor Accident Injuries Regulation 2017 (NSW), current in-force version
- SIRA Motor Accident Guidelines, current published version
- SIRA Motor Accident Guidelines Part 4: claims
- SIRA: what an injured person can claim after a NSW motor crash
This page is based on the current Motor Accident Injuries Act 2017, the Motor Accident Injuries Regulation 2017 and Motor Accident Guidelines version 10.1. The correct result depends on the accident date, entitlement period, written insurer decision and current evidence.
Pay-change calculation review
Has a pay rise or promotion been applied incorrectly?
Send the pay-change letter, old and new payslips, role duties and insurer schedule. We can identify whether the issue concerns actual earnings, PAWE, capacity or future loss.
General information only: This page provides general NSW CTP information, not legal, employment, accounting, tax or financial advice. It does not calculate an individual weekly benefit, determine work capacity, guarantee a review outcome or extend any time limit.