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Determination of compensation tables
Effective every January 1st, WorkSafeBC updates compensation tables based on the prior year's rates for income tax, EI and CPP The compensation tables outlines the standard deductions for each $100 increment of gross annualized earnings at $100 rounded increments, up to the statutory maximum.
Net compensation for the first ten weeks is based on a compensation table as follows:
EI and CPP
To determine the EI and CPP payable, WorkSafeBC considers the EI deductions and CPP premiums required by law to be deducted from most workers' earnings, up to the statutory annual maximum contributions. WorkSafeBC does not take into consideration the fact that a worker might have fully contributed the maximum allowable EI or CPP. Also, as noted in section 33.8(4) of the Workers Compensation Act, "premiums and contributions…are deemed to be payable by all workers." Therefore, the personal circumstances of a worker are not taken into consideration for the purpose of calculating the initial wage rate – e.g. if a worker were exempt from paying either CPP or EI, this would not be considered by WorkSafeBC, nor factored into the initial wage rate.
Federal and provincial income taxes
As noted in section 33.8(5) of the Act, in determining the probable federal and provincial income taxes, the Board only applies the following tax credits under the Income Tax Act and the Income Tax Act (Canada):
- tax credits based on basic personal amounts multiplied by a factor of 1.5; and
- credits for the probable CPP contributions and EI premiums payable for the worker's average earnings.
For the purposes of an initial wage rate, the legislation does not require the Board to take into account a worker's actual tax status for the first 10 weeks of a claim. Therefore, workers with the same gross average earnings, subject to minimum and maximum rules, will have the same deductions for income taxes, EI and CPP.
The compensation table provides allowable deductions for each $100 increment of gross annualized earnings. Therefore, a worker's gross earnings must be converted into annual earnings. For example, if the worker earns $3,000 gross per month at the time of injury, their gross annualized earnings would be $36,000.
Using the compensation table
The compensation table has a row for each level of annualized gross average earnings, between statutory minimum and maximum, upon which compensation payments may be paid for the first 10 weeks of wage loss. Each increment has calculated amounts for federal and provincial income taxes, CPP contributions, and EI premiums. These amounts are deducted from the gross average earnings to determine the 100% net annual earnings and 90% of net annual earnings. The 90% of net annual earnings is then converted 90% net weekly.
Subject to the special minimum and maximum earnings rules, the 90% net weekly figure is the weekly benefit payment.
Minimum and maximum earnings rules
Minimum earnings
Section 29(2) of the Act provides that, where a worker's gross average earnings fall below the statutory minimum, the worker is entitled to 100% of his or her average earnings. With respect to minimum, there is no provision in the legislation to convert the gross average earnings to average net earnings. In effect, a worker would receive 100% of his or her gross average earnings. Please see guidelines relating to minimum compensation and individualized net.
Earnings between 100% minimum and below maximum
Workers whose gross average earnings are at or below the statutory maximum, and 90% of their average net earnings are above the statutory minimum, are entitled to 90% of their net average earnings.
Earnings slightly above statutory minimum
Where a worker's gross average earnings are above statutory minimum,
but 90% of the average net earnings falls below statutory minimum, the
worker will receive the statutory minimum.
For example:
- Worker A has gross average earnings of $17,900 that fall slightly below the present minimum of $18,512.13. In accordance with the Act, the worker is entitled to 100% of those earnings - e.g. $17,900.
- Worker B has gross average earnings of $18,600 that are above the minimum. Therefore, the worker's earnings must be converted to net and a 90% compensation factor must also be applied. In this case, using the Compensation Table, the result would be that the worker would be entitled to approximately $14,625.13. The inequity is that worker B, who earns more than worker A, would receive less compensation. To alleviate the inequity between the two workers the following rule would be applied: where a worker's gross average earnings are above statutory minimum, but 90% of the average net earnings fall below statutory minimum, the worker will receive the statutory minimum - e.g. worker B would get $18,512.13.
Maximum earnings
Gross annual earnings in excess of $68,500 are not insured and not included in benefit calculations.