Wage replacement refers to replacing lost employment income resulting from your workplace injury or illness. To pay you wage loss replacement benefits we set a compensation rate based on the amount of money you were earning at the time of your workplace injury/illness. We may also consider other sources of income lost due to your workplace injury/illness. Once we have your gross employment earnings we calculate your taxable net income by subtracting your income tax, CPP and employment insurance. We then calculate 90 per cent of your taxable income to set your compensation rate.
This short video explains how your wage replacement benefit is calculated.
The table below shows you the approximate weekly amount you could receive based on your gross employment earnings.
|Gross employment earnings (before taxes/deductions - after expenses if self-employed)||Approximate weekly compensation rate (90 per cent of net)|
Compensable earnings are the earnings used to determine your wage replacement benefits. Due to differing legislation in place, the timeframe in which your date of accident occurred will help to determine your compensation rate.
If your date of accident was:
Prior to September 1, 2018
A maximum compensable earnings amount set by our Board of Directors was in place. Compensation benefits were based on 90% of your net income, payable up to the maximum amount. This means if you earned more than the maximum, your compensation rate was based on the maximum amount. Please see the table below for past maximum limits that were in place.
September 1, 2018 – December 31, 2020
Compensation benefits are based on 90% of your net income. There was no maximum compensable earnings amount in place during this time.
On or after January 1, 2021
A maximum compensable earnings amount set by our Board of Directors is once again in place. Compensation benefits are based on 90% of your net income, payable up to the 2021 maximum amount ($98,700 in 2021). This means if you earn more than the maximum, your compensation rate is based on the maximum amount.
|Year||Maximum compensable earnings|
|2020||No limit on earnings|
|2019||No limit on earnings|
|2018 (September - December)||No limit on earnings|
|2018 (January - August)||$98,700|
Reporting wage and replacement benefits
Revenue Canada requires you to report wage replacement benefits as income; however, this amount is not considered to be taxable income.
If you are receiving wage loss benefits we will send you a T5007 statement of benefits. For more information, please reference the T5007 statement of benefits fact sheet.
How your benefits are paid to you
We pay your compensation benefits directly to you. However, your employer may choose to continue paying you while you recover. Should this be the case, we will send your benefit cheques to your employer to reimburse them for the money paid to you.
Sign up for direct deposit
Compensation benefit payments can be made to you by direct deposit, a service where payments are deposited directly into your designated bank account on the specific payment date. For more information see the direct deposit payment service fact sheet.
We provide this service to you at no charge.
To sign up for direct deposit from WCB: