Modified January 1, 2008 for accidents on or after January 1, 2001.
This policy describes how the worker's net average earnings are calculated.
Workers who have accidents after December 31, 1991 will receive wage loss benefits or their survivors’ benefits based on a percentage of the worker’s net average earnings. Net average earnings are calculated in a two step process.
First, the Workers Compensation Board (WCB) determines the worker's average earnings before the accident. That process is described in policy 22.214.171.124, Average Earnings. From those average earnings, the WCB calculates amounts representing probable deductions for income tax payable, Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and other deductions as the Board of Directors may establish by regulation. Those amounts are deducted from “average earnings” to arrive at the worker’s “net average earnings.” The probable deductions that may be used in calculating a worker’s net average earnings are described in this policy.