Gain variations during a packet can lead to significant performance degradation in communications systems that use high order quadrature amplitude modulation (QAM). A method and the associated apparatus track such variations in an OFDM system and completely eliminate any performance degradation. Gain estimation and compensation is employed with the use of pilot subcarriers in the payload of an OFDM data packet. Estimated pilot magnitude ratios are averaged, throughout the processing life of a packet, to yield accurate gain estimations. A gain compensation factor is used to adjust data carriers. An exclusion method is also employed to eliminate pilot carriers which contribute to noise.