Are overtime, commissions and bonuses included in PAWE?

Schedule 1 clause 3 describes income from personal exertion broadly. It includes earnings, salary, wages, commissions, fees, bonuses, allowances and other amounts received as an employee or for services rendered. Schedule 1 clause 4 then identifies the period over which gross earnings are averaged.

For the general category, the period is the 12 months immediately before the accident. If the employee had been earning continuously for less than 12 months, clause 4(2)(a) instead uses the actual continuous earning period. Other exceptions can apply after a qualifying self-initiated earnings increase or where an arrangement to commence work existed. The insurer should identify the clause used in its written calculation.

Do not ask only whether an item appears on a payslip. Identify why it was paid, when it was received and whether it is income from personal exertion. Ordinary wages, paid overtime, commissions, performance bonuses, shift loadings and site or tool allowances may be relevant gross earnings. Their frequency does not have to be identical every week, but the payment must be evidenced and fall within the statutory calculation.

Expense reimbursements are not automatically earnings. Employer superannuation contributions are expressly excluded. Schedule 1 also excludes the monetary amount of annual, sick or other leave entitlement. Unpaid or low-income weeks are not automatically removed from a 12-month average merely because they reduce it; a different treatment needs a statutory basis.

• Keep gross figures separate from net bank deposits.
• Reconcile payroll codes to payslips, rosters and the employer summary.
• Record the payment date and the work period to which arrears or bonuses relate.
• Do not annualise a discretionary bonus that had not been earned or paid without a statutory basis.

Assume the general rule applies, the applicable 12-month record contains 52 weeks, and the employee received AUD 61,000 ordinary wages, AUD 4,800 overtime, AUD 3,600 commissions and an AUD 1,200 performance bonus. Total evidenced gross earnings are AUD 70,600. The simplified arithmetic average is AUD 70,600 divided by 52, or AUD 1,357.69 per week.

That figure is an illustrative PAWE input, not the payment deposited each week. The statutory percentage, entitlement period, post-accident earnings or earning capacity, maximum rules and other individual facts are applied separately. If the accident followed a qualifying pay rise or job change, the general 12-month example may be the wrong legal method.

Build a source schedule that another person can reproduce. List each pay period, gross ordinary pay and variable component, then reconcile the total to the employer report and tax income statement. Explain gaps rather than silently deleting them.

• Payslips for the applicable period and the employer earnings statement.
• Rosters, timesheets and overtime or shift approvals.
• Commission plans, bonus criteria and payment records.
• Employment contract, award or enterprise agreement and rate-change notices.
• Tax income statement and bank records used only as a reconciliation.
• Insurer PAWE decision and worksheet showing the total and divisor used.

PAWE is the pre-accident earnings benchmark. The amount of a weekly statutory benefit is calculated under different provisions and changes across entitlement periods. It can also depend on actual post-accident earnings or assessed earning capacity. A correct PAWE does not prove ongoing incapacity, and a work-capacity decision does not rewrite the PAWE earnings record.

Common-law damages are another separate claim. PAWE may be evidence relevant to economic loss, but it does not determine damages, non-economic loss or eligibility for a damages claim.

Ask for the written PAWE decision required by Guidelines clause 4.45 and the underlying worksheet. Mark the applicable period, each omitted payment, the supporting page and the corrected arithmetic. If the insurer has finalised the figure, read that decision’s internal-review and PIC information immediately. Current Guidelines generally use 28-day application periods for internal review and merit review, but the triggering decision and any extension issue must be checked in the individual case.

Last reviewed: 11 August 2026. Source basis: Motor Accident Injuries Act 2017 (NSW), Schedule 1; SIRA Motor Accident Guidelines version 10.1, including clauses 4.44–4.70; and current official SIRA and PIC material.

Send the insurer worksheet, payslips and variable-payment records through the contact page if you want the calculation reviewed. NSW CTP Claim is a specialised service of Stephen Young Lawyers. Review cannot guarantee a higher PAWE or extend a deadline, but it can identify the statutory category, evidence gap and arithmetic issue that need to be addressed.