Workers Compensation Board of Prince Edward Island

Temporary Wage Loss Benefits


If your work-related injury or illness causes you to miss time from work, you may be eligible for wage loss benefits. These benefits are paid when your injury causes you to lose your earning capacity.

If your injury or illness does not cause you to miss time from work, you are not entitled to wage loss benefits.

Wage loss benefits are tax-free. However, you do need to report them to the Canada Revenue Agency. These benefits may continue as long as you are unable to work, as supported by medical evidence, and you are participating in your recovery.

Temporary Wage Loss

The temporary wage loss benefits you are entitled to are calculated using your pre-injury income. Your benefits are equivalent to 90% of your net annual earnings, up to the current maximum annual earnings limit.
  • Net earnings are your gross earnings less amounts representing probable deductions for income tax payable, Canada Pension Plan, and Employment Insurance premiums.
  • The maximum annual earnings amount is adjusted on January 1 of each year. The maximum annual earnings for 2024 is $78,400. Contact us for the maximum annual earnings from previous years.
Only the wages you earn from employment with insured employers, as well as any employment insurance benefits you received, are used to calculate your wage loss benefits. The WCB may consider your earnings from any continuous 52-week period within the two years prior to your accident date in this calculation.

Payments

Temporary wage loss benefits are paid by direct deposit or cheque on a biweekly basis and continue as long as your work-related injury or illness causes a temporary loss of earning capacity.

Be sure to report all sources of income to the WCB. Your benefits may be reduced by other sources of income you receive while your claim is active. This includes, but is not limited to, collateral benefits from your employer, Employment Insurance, or Canada Pension Plan. Please contact your case worker or refer to the WCB Collateral Benefits policy for details.

If you have questions about wage loss benefits, please contact your case worker.

More information is also available in the WCB's Information for Workers booklet and our wage loss benefits policies.

If you can't find what you are looking for, please contact us.