New rules would also extend support for workers past 65
Ontario is proposing a major overhaul of its workplace injury benefits system, including the first increase to income replacement rates in almost three decades and new rules to support workers who stay on the job past age 65.
The province announced it will move to increase Workplace Safety and Insurance Board (WSIB) Loss-of-earnings (LOE) benefits to 90 per cent of a worker’s take-home pay, up from 85 per cent, if legislation introduced at Queen’s Park is passed.
According to the government, the change means “workers would keep more of their income while they recover” and better manage the rising cost of living while maintaining the long-term stability of the WSIB.
“For example, a worker earning $60,000 a year would receive $2,411 more in benefits over one year,” the province said.
The proposed changes would apply to eligible workers on or after the date the legislation is proclaimed. The WSIB will continue to adjust benefits annually for cost-of-living increases based on the Consumer Price Index.
Change resolves fairness issue: CFIB
Workers should not be financially penalized as a result of being injured on the job, said Steve Chaplin, senior vice president of health, safety and environment at EllisDon.
“We support increasing loss-of-earnings benefits so injured workers can focus on recovery, while also ensuring those who choose to work past age 65 continue to access the support they need.”
The change resolves “a long-standing fairness issue,” said Julie Kwiecinski, director of provincial affairs (Ontario) at the Canadian Federation of Independent Business (CFIB).
“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,”
Support for workers beyond age 65
A key pillar of the package is aimed at older workers who are remaining in the labour force longer than in the past. Since 2023, the average retirement age in Canada has exceeded age 65, and Statistics Canada data cited by the province show that about 444,000 Ontarians aged 65 and older were still working in 2025, representing about 5.4 per cent of the province’s labour force that year.
Under the current rules, LOE benefits typically end automatically at 65. The government now wants to give the WSIB discretion to keep those payments going where workers had planned to continue working beyond that age.
“If passed, the changes would allow eligible workers to continue receiving LOE benefits after age 65 if they planned to keep working, instead of automatically losing those benefits at age 65 under the current rules,” the government said, adding that giving the WSIB this flexibility “helps ensure older workers who are injured do not lose income they were counting on for their retirement.”
“As our workforce changes, our support for injured workers must change too,” said Vijay Thanigasalam, MPP for Scarborough–Rouge Park. “By modernizing the system and strengthening supports, we are making sure no worker is left behind.”
If people miss time from work because of a work-related injury or illness and their claim is allowed by the WSIB, they may be entitled to LOE and health-care benefits.
They will also need to participate in their recovery and return to work, says the board.
The LOE benefit will continue until:
- their work-related injury or illness no longer affects their ability to return to your pre-injury work or
- they’re no longer losing pay or
- the day they reach 65 years old if they were less than 63 years old the day of their injury (note: proposed change)
- two years after the date of their injury if they were 63 years old or older the day of their injury (note: proposed change).
Red tape reduction by WSIB
The WSIB overhaul is part of a broader red tape reduction package the government says it will roll out in the coming days, aimed at cutting regulatory burdens while shoring up worker protections and keeping Ontario “the most competitive place in the G7 to invest, create jobs and do business.”
“At a time of global economic uncertainty, our government is protecting Ontario by making government work better for people and smarter for businesses,” said Andrea Khanjin, minister of red tape reduction.
The WSIB has eliminated its unfunded liability since 2018 and currently has an average premium rate of $1.23 per $100 of insurable earnings — the lowest in more than 50 years.
The Ontario government has also proposed legislation that would significantly broaden workplace injury insurance coverage, extending protections to roughly 29,000 additional frontline care workers across the province.
If approved, the changes would require all privately run residential care facilities, retirement homes, and group homes to provide mandatory coverage through the Workplace Safety and Insurance Board (WSIB).
