Worker’s Compensation

Permanent impairment compensation

A worker who suffers a work-related injury resulting in permanent impairment is entitled to a lump sum payment calculated by multiplying the percentage of their permanent impairment by 125% of the maximum annual earnings in effect for the year during which they suffered the injury.

Damages in connection

The board may pay for the repair or replacement of a worker's personal property that is damaged in connection with a work-related injury.

Loss of capacity to earn

An employee may receive compensation for the worker's loss of earning capacity as the difference between their average earnings before the work-related injury and the average earnings they are capable of earning after the injury.

Determining average earnings

The board must determine the amount of a worker's average earnings, taking into account all earnings from employment and other forms of remuneration.

The board may consider different criteria when determining short-term or long-term loss of earnings benefits.

The board may also deem the amount of a worker's average earnings on a provisional basis and adjust any loss of earnings benefits that were paid based on the deemed average earnings, after determining the worker's actual average earnings.

Determining the length and amount of benefits

The amount of benefits payable is determined by the degree of loss of earning capacity and the worker's average earnings before the injury.

If the worker's average earnings before the injury are less than or equal to the minimum loss of earnings benefit, the board must pay 100% of the loss of earning capacity.

If the worker's average earnings are greater than the minimum loss of earnings benefit but less than or equal to 133% of the minimum loss of earnings benefit, the board will pay a portion of the loss of earnings benefits based on a formula:

Minimum Loss of earnings benefit - The Average Earnings the worker is capable of earning = Payable Benefits

If the worker suffers a permanent total loss of earning capacity, they are entitled to a minimum level of loss of earnings benefits.

Benefits are payable until:

  • the worker's loss of earning capacity ends, as determined by the board, or

  • until the worker reaches the age of eligibility for Old Age Security benefits under Canadian federal law,

  • whichever occurs first.

However, if a worker is at least four years away from eligibility for Old Age Security benefits at the time they are injured on the job and is over a certain age, the board may continue to pay benefits for up to 48 months after the injury.

Day of injury

When a worker suffers a work-related injury and cannot work during any part of the day on which the injury occurs, the employer must pay the worker their earnings for that day.

Retirement benefit

If a worker receives loss of earnings benefits for a cumulative period of 24 months in respect of the same work-related injury, the board must establish a retirement benefit for the worker, which is an amount equal to 10% of the loss of earnings benefits paid during the period, 10% of every subsequent loss of earnings benefits paid to the worker in respect of the same work-related injury, and interest that begins to accrue after the allotted period at a rate determined by the board, compounded annually until the date the worker is eligible to receive the retirement benefit.

YK Workers Safety and Compensation Act s.97-100, 102-103, 105, 106, 109