Average Earnings

Policy Purpose

When a worker is injured at work, income from various sources may be interrupted. The workers compensation system is designed to replace all employment income lost as a result of a workplace accident, subject to limitations established under The Workers Compensation Act (the “Act”). 
 
Determining what a worker’s average earnings were before their accident is a preliminary step to determining wage loss benefits or certain benefits payable to a deceased worker’s spouse or common-law partner. A worker’s wage loss benefits are based on their loss of earning capacity, which is calculated as the difference between pre- and post-accident net average earnings. 
 
This policy provides a framework for determining a worker’s average earnings. The WCB uses the same method to determine average earnings regardless of the accident date. 
 
Policy 44.80.10.40, Net Average Earnings, outlines the calculation of net average earnings. 
 
Policies 44.80.30.10, Establishing Post-Accident Earning Capacity, and 44.80.30.20, Post-Accident Earnings – Deemed Earning Capacity, provide guidance for determining a worker’s post-accident earning capacity.