Human Resources Legislative Update
Ontario Proposes Higher WSIB Wage Replacement & Extended LOE Eligibility for Older Workers
Date: April 14, 2026
On April 13, 2026, the Ministry of Labour, Immigration, Training and Skills Development (MLITSD) announced proposed legislative amendments to the Workplace Safety and Insurance Act, 1997 (WSIA) that would increase wage-replacement benefits and extend eligibility for loss of earnings (LOE) benefits for older workers.
The first proposed amendment would increase LOE benefits from 85% to 90% of a worker’s pre-injury net average earnings, which would increase the cost of all lost-time claims for employers.
The second proposed amendment would remove the automatic end to LOE for workers when they reach the age of 65. Under the proposed amendment, workers who intend to continue working past age 65 could receive benefits for a longer period; however, the criteria for determining a worker’s intent have not yet been identified.
These amendments, if passed, may result in higher claims costs for Schedule 1 and Schedule 2 employers. Schedule 1 employers (e.g., employers in the manufacturing, construction, mining and natural resources, transportation and warehousing industries, the retail and wholesale trade, most private-sector service industries (e.g., hospitality, cleaning services) and temporary help agencies (subject to special rules)) could face increased premium pressure resulting from being placed in higher risk bands as the cost and duration of lost time claims rise. Schedule 2 employers (e.g., the Government of Ontario, municipal governments (unless they opt into Schedule 1), federal government bodies operating in Ontario, federally regulated railways, and federally licensed telephone companies and telecom providers), who fund their claims directly, may experience significant cost increases, particularly if LOE benefits extend beyond the age of 65.
The proposed increase in LOE amounts and the possibility of longer claim durations for older workers underscore the importance of employer return to work programs. An early and successful return to work is a proven strategy for minimizing claim costs, and will become even more important if the proposed amendments are passed.
As these proposed amendments are not yet law, employers should closely monitor the progress of the legislation and, if passed, watch for further guidance from the Workplace Safety and Insurance Board regarding how they will assess a worker’s intent to continue working past the age of 65.
For assistance with workplace safety and insurance matters, please consult with Stephanie Savoni or any member of our Workplace Safety & Insurance Group.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Hicks Morley Hamilton Stewart Storie LLP and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Hicks Morley Hamilton Stewart Storie LLP. ©