Ontario is set to propose significant enhancements to Workplace Safety and Insurance Board (WSIB) benefits, marking the first increase in income replacement for injured workers in almost three decades. The Ministry of Labour, Immigration, Training and Skills Development is leading this initiative to provide greater financial support, especially with the rising cost of living.

Key Benefit Increase Proposed

The proposed legislation, if passed, would raise loss-of-earnings (LOE) benefits from the current 85 percent to 90 percent of a worker's take-home pay. This adjustment means injured workers would receive a larger portion of their pre-injury income, aiding them financially during recovery.

Minister David Piccini highlighted the government's dedication to injured workers, stating, "No worker should have to worry about paying their bills while they recover from a workplace injury." This proposal recognizes the vital role workers play in Ontario's economy.

Addressing an Aging Workforce

The changes also acknowledge the growing trend of Canadians delaying retirement and working past age 65. The proposed legislation would allow eligible workers to continue receiving LOE benefits even after reaching this age, a significant departure from current rules that often see benefits automatically cease.

This amendment aims to prevent financial hardship for older workers who rely on these benefits for medical expenses and living costs. It reflects a more inclusive approach to worker compensation, supporting longer working lives.

Expected Impact and Rationale

The increase in LOE benefits is anticipated to offer substantial relief. For instance, a worker earning $60,000 annually could see an approximate increase of $2,411 in benefits per year.

The government's decision to propose these changes is a response to the current economic climate, particularly the substantial rise in the cost of living. The aim is to help injured workers manage their financial obligations and maintain their quality of life during rehabilitation.

Demographic Shifts and Policy Adaptation

The proposal aligns with demographic shifts, such as the approximately 444,000 Ontario residents aged 65 and older who were in the workforce in 2025, according to Statistics Canada. This trend underscores the need for policies that support older workers.

By extending LOE benefits beyond traditional retirement age, the new legislation acknowledges the reality of longer working lives. This adaptation ensures that compensation policies remain relevant and responsive to the needs of an aging workforce.