Worker's Compensation Benefits - Income Replacement Benefit
Each province requires certain industries to participate in a public run compensation scheme for work related illness and injury.
Benefits are paid when disability begins without any waiting period. Wage loss benefits are normally indexed to the cost of living and continue to age 65 when they are replaced with a lifetime pension. The total disability benefit is 90% of net after tax earnings in some provinces and 75% of taxable earnings in other up to a maximum monthly benefit. Partial benefits are available and based on the degree of disability.
Worker's Compensation Boards are the first payer for medical and rehabilitation expenses incurred as a result of occupational accidents.
Benefits are paid to a surviving spouse and in some provinces for dependent children under the age of 18.
A death benefit of $1,000 to $2,000 is paid to assist with final expenses.
Employers in covered industries cover the full cost of the program. Rates are set based on industry and company experience.
Workplace safety and accident prevention is stressed to minimize claims.
Stringent rules govern prompt reporting of every work related injury.
Worker's Compensation coverage replaces the employee's right to sue the employer for damages or injuries.
Benefits are non-taxable.
Employer contributions are tax deductible.