Calculating NWE

The calculator is useful when a worker has earned different amounts each week and it is necessary to determine a weekly rate that is ‘normal’. Before using the calculator it is necessary to identify what amounts are included and excluded from the calculation of NWE (refer to information in sections below).

What does it do?

The NWE calculator uses statistical measures of mode, median, and mean to determine an amount that is ‘normal’.

• The mode is the most frequently recurring amount.
• The median is the middle amount in a given sequence of amounts listed in ascending order.
• The mean is the sum of all amounts divided by the total number of amounts.

The calculator considers whether the mode occurs at least 1/3 of the time.  If so, the mode is used as NWE.

• If not, the calculator compares the median and the mean.
• If the mean is within 5% of the median, the greater amount of the two is used as NWE.
• If the median and the mean differ by more than 5%, the median is used as NWE.
• If a mode of $0 (nil) occurs at least 1/3 of the time and if the median is also $0 (nil), the mean will be used as NWE.

How do you use it?

1. Right click on the 'Download the normal weekly earnings calculator' link below and select 'Save target as'.

2. Save the Microsoft Excel Worksheet to your computer and open the Worksheet..

3. Insert the end date of the first pay period (use the format dd/mm/yyyy).

4. Insert the end date of the last pay period (use the format dd/mm/yyyy).

5. Select the frequency of pay from the drop down menu (e.g. weekly, fortnightly, monthly).

6. Click on ‘list dates for payment entry’.

7. Insert the amounts for each pay period, rounding up to the nearest $5.00 is appropriate.

8. Click on ‘calculate NWE’.  The mode, median, and mean will be calculated and compared in accordance with the above. The ‘NWE rate’ will tell you a weekly amount for NWE.

Download the normal weekly earnings calculator

Please note:  A value must be entered for each pay period, even if the value is $0 (nil). The results from this calculator should be used as guide only. The NWE calculator contains macros and a full installation of Microsoft Excel is needed. To use the calculator, macros must be enabled. The calculator will be regularly updated.

For help using the calculator or for further information on normal weekly earnings, please contact your Customer Advisor.