Key References & Legislation
If you believe your weekly payments have been set too low by the insurer, you do not have to accept it. You have the right to request a formal recalculation of your Pre-Injury Average Weekly Earnings (PIAWE).
Fast triage: is your PIAWE likely wrong?
- Your regular overtime, shift penalties, or allowances are missing from the insurer rate.
- You had multiple jobs before injury and only one income source was counted.
- The insurer used the wrong averaging window or could not explain the period in writing.
- Your indexation/backpay looks lower than expected after a rate review.
If any of these apply, compare your figures with the PIAWE calculation guide and the multiple jobs guide before sending your written recalculation request.
What to do first (next 48 hours)
- Ask the insurer in writing for a full PIAWE rate breakdown and the averaging period they used.
- Attach your wage evidence pack (payslips, roster/overtime records, contracts, second-job records).
- Identify each specific error in the insurer calculation rather than only saying the payment is low.
- If no clear written answer follows, move to formal review and prepare the PIC pathway early.
Why acting early matters
A wrong PIAWE figure can drag down your weekly payments for months or years. The longer the insurer's number sits unchallenged, the harder it becomes to unwind arrears arguments, missing payroll records, and return-to-work assumptions built on an underpaid rate.
Before writing to the insurer, compare your rate against the PIAWE calculation guide and the indexation rules guide so you know whether the issue is missing earnings, a wrong averaging period, or underpaid backpay.
Step 1: Identify the Error
Insurers commonly make mistakes in the following areas:
- Overtime & Allowances: Failing to include regular overtime or shift loadings from the 52 weeks prior to injury.
- Missing Payslips: Calculating the average based on a shorter period than required by law.
- Secondary Employment: Ignoring income from a second job.
- Non-Monetary Benefits: Not assigning value to a provided vehicle or accommodation.
Step 2: Formal Request for Review
Start by contacting the insurer in writing and clearly identifying each error in their PIAWE decision. Provide supporting records (payslips, contracts, payroll summaries, rosters and tax records) to show your correct pre-injury earnings.
If you had more than one employer at the time of injury, use our multiple jobs guide before sending your review request so you include every relevant income source from the start.
If you need a practical timeline for assembling records and escalating quickly, follow our PIAWE recalculation 14-day action plan.
Evidence checklist before you send the review
- Full payslip history covering the relevant averaging period
- Employment contract or award classification details
- Rosters or payroll summaries showing overtime and shift patterns
- Records from any second job or concurrent employment
- Prior insurer rate letters and weekly payment notices for comparison
What usually goes wrong before a recalculation request gets real traction
The worker says the rate looks wrong but never identifies the actual error
Insurers can ignore vague complaints surprisingly easily. The most effective request points to the exact issue: missing overtime, wrong averaging period, lost second-job income, or a step-down built on the wrong base number. Start with the PIAWE calculation guide if the error is still fuzzy.
Payslips are provided, but the insurer is not forced to answer them
Workers often email wage records informally and assume the file manager will fix the rate. A stronger move is to tie those records to a written recalculation demand and ask for a written response. That makes it harder for the issue to disappear into "ongoing review".
The wage dispute is mixed up with work-capacity language
Once the insurer starts talking about suitable duties, partial earnings, or capacity to work, the underpayment issue may overlap with a work capacity decision. If that is happening, prepare for both arguments rather than treating the file as pure arithmetic.
The review is delayed until the claim is already under bigger pressure
A low starting rate becomes nastier once payments are reduced, stopped, or pushed toward statutory limits. If your weekly support is already under threat, compare the file with the weekly payments stopped guide and the section 78 notice guide.
Four-sentence template for your written recalculation request
- I request a formal recalculation of my PIAWE and weekly payment rate.
- The calculation appears incorrect because of [state each specific error, period, and earnings item].
- I attach evidence for each issue and request a full written rate breakdown (method, dates, and period-by-period figures).
- If a substantive written response is not provided promptly, I will proceed to internal review and prepare PIC escalation.
Step 3: Escalation to IRO or PIC
If the insurer refuses to adjust your rate, you can escalate the issue through the Independent Review Office (IRO) and, where required, lodge a dispute in the Personal Injury Commission (PIC).
If the underpayment dispute is tied to a broader insurer decision about capacity, hours, or suitable duties, review the work capacity dispute pathway and the weekly payments stopped guide.
Common Questions
Can I ask for recalculation even if payments started months ago?
Yes. If the original PIAWE decision was wrong, you can still seek correction and request arrears for underpaid weekly compensation.
Do I need every payslip from the full 52 weeks?
Complete records are best, but partial records can still support review. Missing records can often be obtained from your employer or payroll provider.
What if I had multiple jobs before injury?
Secondary income may be relevant depending on your circumstances. See our multiple jobs guide and seek tailored advice early.
What document pack should I send in the first 48 hours?
Send your current and historical payslips, payroll summary, roster/overtime records, contract or award details, and any second-job earnings records. Ask for a full written rate breakdown and tie each document to a specific calculation error.
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Related PIAWE and weekly-payment guides
- Weekly Payments Hub
- Workers Compensation Services (NSW)
- PIAWE Calculation Explained
- PIAWE Indexation Rules
- Multiple Jobs and Second Income Guide
- What to Do if Weekly Payments Stop
- PIAWE Recalculation 14-Day Action Plan
- Section 39 (260 Weeks) Eligibility and Risk Guide
- Escalate to a Work Capacity Dispute
- Challenge a Section 78 Notice
- PIC Dispute Process
- NSW Workers Compensation Insurer Directory
- Start Free Claim Check