The proposal also amends “workplace legislation for those working beyond 65 years old
The Ontario government has pitched the first increase to income replacement benefits for workers injured on the job in almost three decades.
If the proposal is passed, the Workplace Safety and Insurance Board loss-of-earnings benefits will rise from 85 percent of a worker’s take-home pay to 90 percent; thus, workers can handle increasing costs of living while sustaining the WSIB’s long-term stability.
“For workers here in Scarborough, this is about fairness and dignity. When someone is injured on the job, they shouldn’t have to worry about falling behind on rent, putting food on the table, or supporting their family. Increasing benefits to 90 percent of take-home pay delivers real support that reflects today’s cost of living,” said David Smith, member of provincial parliament for Scarborough Centre, in a statement.
The WSIB makes annual adjustments to benefits according to cost-of-living standards per the Consumer Price Index. Its existing average premium rate is $1.23 per $100 of insurable earnings – per the Ontario government, this is the lowest rate in over five decades.
“No worker should have to worry about paying their bills while they recover from a workplace injury. By proposing the first increase to income replacement benefits in nearly 30 years, our government is helping ensure injured Ontarians can focus on getting better,” said David Piccini, minister of labour, immigration, training, and skills development, in a statement.
The proposal would also amend the Workplace Safety and Insurance Act to support workers opting to work beyond the age of 65. Under the current regime, workers immediately lose LOE benefits at 65, but the pitched reform would allow qualified workers to still secure these benefits.
This change protects older, injured workers’ income given that since 2023, Canada’s average retirement age has passed 65. Statistics Canada indicated that approximately 444,000 Ontarians (5.4 percent of the province’s labour force) stayed in the workforce last year.
Julie Kwiecinski, the Canadian Federation of Independent Business’ director of provincial affairs (Ontario), said this had been a “long-standing fairness issue” for CFIB members supporting the WSIB.
“Businesses will now get their full money’s worth for the WSIB premiums they pay for their employees aged 65+, as these employees will now be entitled to loss-of-earnings coverage,” Kwiecinski said.
The Ontario government indicated that this proposal is part of a bigger suite of measures to reduce red tape and protect workers. Other measures are set to be introduced in the near future.
