7Manner of calculating further annual increase—indexation after cessation of employment

7 Manner of calculating further annual increase—indexation after cessation of employment

For the purposes of subsection 8(9D) of the Act, the further increase in normal weekly earnings referred to in subsection 8(9B) of the Act is to be calculated, to 3 decimal places and rounded up to 2 decimal places, in accordance with the following formula: Start formula open bracket F times WE close bracket minus WE end formula where:

F is the greater of the following:

(a) the number (worked out to 4 decimal places and rounded up to 3 decimal places) obtained by dividing the index number by the previous index number;
(b) 1.000.

index number is the index number of the Wage Price Index mentioned in section 6 for the quarter that ended on 31 December in the year immediately before the indexation date.

previous index number is the index number of the Wage Price Index mentioned in section 6 for the quarter that ended on 31 December in the previous year.

WE is the normal weekly earnings that applied immediately before the indexation date.

Note: Under this formula, there will be a further increase in normal weekly earnings only if F is greater than 1.000.