Proposed reforms would raise income support and extend coverage past age 65
SCARBOROUGH — The Ontario government is proposing sweeping changes to workplace injury benefits, including the first increase in income replacement rates in nearly three decades, as it seeks to strengthen financial protections for workers amid economic uncertainty.
The reforms, announced April 13 by David Piccini, would raise Loss-of-Earnings (LOE) benefits provided through the Workplace Safety and Insurance Board to 90 per cent of a worker’s take-home pay, up from the current 85 per cent. The changes would also allow certain workers to continue receiving benefits beyond age 65 if they intended to remain in the workforce.
First major increase in decades
If passed, the increase would mark the first adjustment of its kind since the late 1990s, when benefit levels were reduced during a period of financial strain at the WSIB.
“No worker should have to worry about paying their bills while they recover from a workplace injury,” said Piccini. “By proposing the first increase to income replacement benefits in nearly 30 years, our government is helping ensure injured Ontarians can focus on getting better. Ontario’s workers built this province, and we will always have their backs.”
The government says the higher replacement rate would help workers cope with rising living costs while maintaining the WSIB’s financial stability. For example, an employee earning $60,000 annually would receive an additional $2,411 in benefits over a year under the proposed system.
Adapting to an aging workforce
A second key component of the proposal reflects shifting labour market trends, particularly the growing number of Canadians working beyond traditional retirement age.
Currently, workers generally lose access to LOE benefits at age 65. The proposed amendments would give the WSIB discretion to continue payments for eligible individuals who had planned to keep working.
According to Statistics Canada data cited by the province, approximately 444,000 Ontarians aged 65 and older remained employed in 2025, representing about 5.4 per cent of the province’s labour force.
“As our workforce changes, our support for injured workers must change too,” said Vijay Thanigasalam. “That’s why we are taking bold, meaningful steps to ensure they have the stability and security they deserve, now and in the years ahead. By modernizing the system and strengthening supports, we are making sure no worker is left behind.”
Economic and policy context
The announcement comes as Ontario navigates broader economic pressures, including global uncertainty and the effects of U.S. tariffs. The government has positioned the reforms as part of a larger effort to improve competitiveness and reduce regulatory burdens.
“At a time of global economic uncertainty, our government is protecting Ontario by making government work better for people and smarter for businesses,” said Andrea Khanjin. “By cutting red tape, we are saving families and businesses nearly $1.3 billion and 1.8 million man hours every year. Our government’s practical reforms ensure Ontario’s economy remains the most competitive, resilient, and self-reliant in the G7.”
The WSIB, which has eliminated its unfunded liability since 2018 and maintains one of its lowest premium rates in over 50 years, would continue to adjust benefits annually based on inflation.
Broad support from business and labour groups
The proposed changes have drawn support from a wide range of stakeholders, including employers, labour organizations and safety advocates.
“Workers should not be financially penalized as a result of being injured on the job, we support increasing Loss-of-Earnings benefits so injured workers can focus on recovery, while also ensuring those who choose to work past age 65 continue to access the support they need,” said Steve Chaplin of EllisDon Corporation.
Jeff Lang, president and CEO of the WSIB, emphasized the role of income replacement in recovery outcomes: “One of the most important services we provide is income replacement for people who miss work because of an injury or illness. Raising income replacement to 90 per cent would help give people peace of mind so they can focus on their recovery and have a safe and timely return to work. ”
Business groups also welcomed the move, particularly the extension of benefits for older workers. “Thanks to Minister Piccini and the Ontario government for resolving a long-standing fairness issue raised by many CFIB members who help fund the WSIB,” said Julie Kwiecinski of the Canadian Federation of Independent Business. “Businesses will now get their full money’s worth for the WSIB premiums they pay for their employees aged 65+, as these employees will now be entitled to Loss-of-Earnings coverage.”
Labour and advocacy organizations echoed similar sentiments. “The Ontario Workers Network (OWN) is pleased that the Province of Ontario and the Ministry of Labour are taking meaningful action to strengthen protections for injured workers,” said Aaron Slingerland. “The enhancements to the Loss-of-Earnings benefit recognize the real financial realities workers face after a workplace injury.”
Next steps
The proposed measures are part of a broader legislative package expected in the coming days aimed at reducing red tape and enhancing worker protections.
If approved, the changes would apply to eligible workers from the date the legislation comes into force, marking a significant update to Ontario’s workplace insurance system as it adapts to modern economic and demographic realities.