How back wages are calculated
You want to know how much salary you could be awarded and what reduces it.
How much can back wages be?
No single figure applies, because it depends on your salary, how long the case runs and any deductions. What is fixed is the outer limit: back wages are assessed from the date of dismissal to the last day of hearing.
That period is capped at 24 months for a confirmed employee and 12 months for a probationer.1 The cap is a ceiling, not a promise that every case reaches it.
What can reduce the final figure?
Earnings from a new job during the same period may be deducted from the back wages figure.2 So the calculation is not simply your old salary multiplied by the months the case took.
The cap and the deduction work together, so a longer case does not always mean a larger award once new income counts. Keep clear records of any income you earn while the case runs.
How should you plan around the number?
A rough figure helps you budget before your case is decided. Some workers plan around the lower end of the range and treat anything above it as a bonus.
Keep your salary history and new income records updated, so the estimate can be refined as the case moves through each stage.
What should you do next?
Gather your salary history and records of any income since your dismissal. Read about compensation in lieu of reinstatement, a separate figure that can apply alongside back wages, and the compensation calculator guide for a rough range.
If you want a lawyer to pursue a back wages claim, an employment lawyer can estimate it from your salary, dates and new income and act if you have grounds.
If you are considering a claim for back wages, an independent employment lawyer can review your pay and dismissal date and pursue it for you if you have grounds.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.
Common questions
Is back wages the same as compensation in lieu of reinstatement?
No, though both can appear in the same award. Back wages cover the salary lost during the case, while compensation in lieu of reinstatement is a separate payment when the court decides not to order your job back.
Does the cap mean I automatically get the maximum?
No. The cap is a ceiling, not a promise of that amount. The figure depends on your salary, how long the case took and any deductions.
Why would my new job reduce the amount I am owed?
Back wages are meant to cover lost income, so earnings from new employment in the same period can be deducted instead of being paid on top.
Does back wages apply if I am reinstated?
Yes. Back wages can be awarded alongside reinstatement to cover the time you were out of work, under the same cap and deduction rules.
Keep reading
If you are considering a claim for back wages, an independent employment lawyer can review your pay and dismissal date and pursue it for you if you have grounds.
For people seeking legal representation. For general information, please use our guides and tools.
First contact: general facts only, such as date, location, employment status and a short summary. Keep documents private until an identified independent lawyer contacts you and specifically requests them.