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Wage-loss benefits
Compensation benefits, also known as wage-loss benefits, are based on 90% of a worker's average net earnings. Therefore, WorkSafeBC must determine both the average earnings of a worker as well as the worker's net earnings. Also, there are rules for short-term average net earnings (compensation up to 10 weeks) and special rules for long-term average net earnings.Step 1 - Determining average earnings
For permanent full-time and part-time workers
For regularly employed workers, average earnings will normally be based on a worker's average earnings at the time of injury. This amount will be used for the first 10 weeks of a disability. After ten weeks, average earnings will normally be based on the worker's earnings in the 12 month period prior to the injury.
For casual workers
For casual workers, average earnings will be based on a worker's average earnings earned in the 12 months prior to the injury. This amount will be used for the entire period of disability.
For self-employed workers who purchased POP (Personal Optional Protection) coverage
For a self-employed worker who has purchased POP, average earnings are based on the amount of POP purchased. This amount will be used for the entire period of disability. View the POP compensation table.
Apprentices, learners, or new employees employed less than 12 months
For apprentices, learners or new employees employed less than 12 months, average earnings will be based on the time of injury earnings. This amount will be used for the first 10 weeks of a disability. After ten weeks special rules apply. Please speak to the Case Manager who will be able to provide more information.
Step 2 - Determining "net" earnings
Net deductions for first ten weeks
In determining average net earnings for the first ten weeks of disability, the Board deducts probable Canada Pension Plan contributions, Employment Insurance premiums and federal and provincial income taxes. To determine approximate benefit levels payable for the first 10 weeks of a compensation claim, view the net compensation table . These tables apply to most workers.
Net deductions after ten weeks
In determining average net earnings after ten weeks, individual aspects of a worker's tax situation are considered. WorkSafeBC must consider the following in determining the worker's probable federal and provincial income tax payable:
(a) tax credits based on basic personal amounts
(b) credits for the probable CPP contributions and EI premiums payable for the worker's average earnings
(c) spousal credit/wholly dependent person credit
(d) infirm dependant credit.
WorkSafeBC will not deduct probable taxes where the worker is not required to pay income tax. However, they do not completely take into consideration the worker's actual tax status: no other income tax deductions which the worker might have declared for tax purposes may be considered for the purposes of the establishing long-term average net earnings. Also, when applying income tax credits for dependants, it is assumed that the dependants have no income - therefore the full credit is allowed.
Workers exempt from, or ineligible for, EI or CPP would not have these amounts deducted.
View the weekly wage rate calculator.
General information about wage-loss benefits
Earnings from employers during benefit period
If an individual is working and in receipt of WorkSafeBC benefits (e.g. a return to work program) the WorkSafeBC benefits are reduced according to the amount the worker is receiving for the work. In these cases, the average net earnings are subtracted from the average net earnings from the employment and the balance is then multiplied by 90% to determine the weekly benefit.
Maximum earnings
Gross average earnings are subject to the statutory maximum. If a worker's gross average earnings exceed the maximum, the maximum will be used for the purposes of calculating the average net earnings.
Minimum earnings
Gross average earnings are subject to a statutory minimum. If a worker's gross average earnings fall below that minimum, the worker is entitled to 100% of their average earnings. This means that there would be no net deductions; nor would the 90% compensation factor be applied.
If an employer continues to pay a worker's salary
If an employer continues to pay a worker's full salary while the worker is disabled, the benefit amount is still calculated as described above. However, WorkSafeBC will send the compensation benefits directly to the employer.
Net deductions are not submitted to Canada Revenue Agency (CRA)
When WorkSafeBC determines net, there are no actual deductions from the worker's compensation cheque. This is different than the situation where employers deduct taxes and submit those amounts to CRA. WorkSafeBC only uses the net formulas as a way to determine the amount of compensation payable. Therefore, no monies are actually deducted and submitted to CRA.
Duration of benefits