The Permanent Impairment Benefit

When a worker sustains a permanent impairment due to an injury, they are entitled to receive a permanent-impairment benefit. The worker's permanent impairment is determined by the Workers' Compensation Board and expressed as a percentage of total impairment. The Board establishes a rating schedule to calculate the award for a permanent impairment, which may be prescribed as a regulation.

The amount of the permanent-impairment benefit is determined by multiplying 30% of 85% of the worker's net average earnings by the percentage of permanent impairment suffered, as calculated according to the rating schedule. This benefit is payable for the lifetime of the worker unless specified conditions apply, such as the worker's death before a determination of the degree of permanent impairment is made.

Compensation for Coal Miners

Coal miners who have worked at the face of a mine or in similar conditions for twenty years or more and suffer from a permanent impairment resulting in a loss of lung function are compensated based on the permanent impairment calculated.

Presumption for Firefighters

In the case of firefighters, if a worker who is or has been a firefighter suffers from prescribed cancer or disease, it is presumed to be an occupational disease resulting from their employment as a firefighter, unless proven otherwise. This presumption applies to firefighters who meet specific criteria, including a minimum period of service, regular exposure to hazards, and satisfaction of other prescribed conditions.

Exclusions and Compensation Calculation

Specific exclusions and provisions apply in certain cases, such as when firefighters learned about their disease before a prescribed date or when compensation is calculated for the period before a particular provision came into force.

Earnings-Replacement Benefits

If a worker experiences a loss of earnings due to an injury, they are entitled to receive an earnings-replacement benefit. The amount of the benefit is the difference between 75% or 85% of the worker's loss of earnings (depending on the duration) and any permanent-impairment benefit received. The duration of earnings-replacement benefits is determined by the worker's ability to work or until the worker reaches the age of 65, with certain exceptions for workers aged 63 or older.

Calculation of Loss of Earnings

The loss of earnings is calculated as the difference between the worker's net average weekly earnings before the loss of earnings commenced and the net average weekly amount the worker is earning or capable of earning in suitable employment. Deductions for income tax, pension plan premiums, unemployment-insurance premiums, and other prescribed deductions are taken into account.

Relevant Times

The worker's net average earnings and maximum earnings are usually based on the date of injury. However, in certain situations, such as subsequent losses of earnings or delayed onset of loss of earnings, the Board may consider different dates to accurately represent the actual loss suffered by the worker due to the injury.

Maximum Gross Annual Earnings

The maximum amount a worker can earn in a year for the purpose of workers' compensation is determined based on different factors. These factors include the previous legislation, a fixed amount (thirty-eight thousand dollars at the time the law came into force), and a percentage of the average industrial wage for the Province.

Gross Average Earnings

To calculate compensation, a worker's gross average earnings are considered. This includes their regular salary or wages and any other types or amounts of income as prescribed by the workers' compensation board. The calculation is done over a period of up to three years before the worker experienced the loss of earnings, and it's expressed as a weekly amount.

Earnings Calculation Challenges:

In some cases, it may be difficult to calculate a worker's earnings accurately due to factors such as short employment duration or the casual nature of the job. In such situations, the workers' compensation board has the authority to determine the earnings in a way that best represents the actual loss suffered by the worker due to the injury.

Concurrent Employment

If a worker has multiple employers at the same time, their average earnings will be computed based on the total earnings from all employers.

Special Considerations

The workers' compensation board can make special provisions for workers who were learners or young workers. In such cases, if the average earnings before the loss of earnings do not fairly represent the actual loss, the board may determine a more appropriate average earnings amount.

Cost Allocation

The board has the power to allocate additional costs incurred when including earnings from industries not covered by workers' compensation, including earnings from employers other than the one where the injury occurred, or when adjusting earnings based on special provisions for learners or young workers.

Maximum Compensation

The total amount of compensation payable to a worker is subject to certain limits. The maximum compensation is typically a percentage of the net maximum earnings in the most recent year of injury. The board may also consider factors such as the length of time a worker receives compensation and its impact on taxes and other premiums. Regulations may be put in place to govern deductions and reductions in compensation.

NS Workers Compensation Act s. 34-48