TORONTO — The Ontario government is proposing changes to increase income replacement benefits for injured workers and extend support beyond age 65 under amendments to the province’s workplace insurance system.
Labour Minister David Piccini said the proposed legislation would raise Workplace Safety and Insurance Board (WSIB) Loss-of-Earnings (LOE) benefits from 85% to 90% of a worker’s net earnings. If approved, the change would mark the first increase to these benefits in nearly three decades.
The government says the increase is intended to help injured workers manage rising living costs while recovering from workplace injuries. According to provincial estimates, a worker earning $60,000 annually would receive about $2,400 more in benefits over a year under the proposed change.
The legislation would also allow eligible workers to continue receiving benefits after age 65 if they had planned to remain in the workforce. Current rules generally end LOE benefits at that age.
Officials say the proposed update reflects shifting labour trends, as more Canadians continue working past traditional retirement age. Statistics Canada data cited by the province indicates approximately 444,000 Ontarians aged 65 and older were employed in 2025, representing about 5.4% of the provincial labour force.
The WSIB currently adjusts benefits annually based on inflation, but the base replacement rate has remained unchanged since it was reduced in 1998 during a period of financial strain. The board has since eliminated its unfunded liability and reports a stable financial position.
The proposed measures are part of a broader package of reforms the government says are aimed at reducing regulatory burdens, supporting workers and maintaining Ontario’s economic competitiveness.
The changes would apply to eligible workers if and when the legislation is passed and proclaimed into force.