WSIB Loss of Earnings Benefits in Ontario

If your work injury has reduced your pay, WSIB loss of earnings benefits may be the income support that keeps your bills paid while you recover. But many injured workers are surprised when their payments are lower than expected, reduced after a review, or cut because WSIB says they could earn money in a different job.

Need help understanding or disputing your LOE benefits? Compare verified WSIB lawyers and paralegals on ClaimIt and choose a representative who handles these disputes.

This guide explains how WSIB Loss of Earnings benefits work in Ontario, how the 85% formula is applied, why short-term and long-term calculations can differ, what deemed earnings mean, and when it may be time to fight back.

Key Takeaways

WSIB Loss of Earnings benefits are meant to replace part of the wages you lose because of a work-related injury or illness.
WSIB generally pays 85% of your net average earnings loss, not 85% of your gross wages.
Your benefits can change after WSIB reviews your medical recovery, work restrictions, return-to-work options, or ability to earn income.
Deemed earnings can reduce your payment even if you are not actually earning that amount.
NEL awards are different from LOE benefits. NEL compensates for permanent impairment, while LOE addresses wage loss.
If a decision seems wrong, deadlines apply. Get advice quickly before your appeal window closes.

What Are WSIB Loss of Earnings Benefits?

WSIB Loss of Earnings benefits, often called LOE benefits, are wage-loss payments for injured or ill workers who cannot earn the same income because of a workplace injury or occupational disease.

In plain language, LOE benefits are meant to cover part of the gap between what you earned before the injury and what WSIB believes you can earn after the injury.

You may receive LOE benefits if:

WSIB has allowed your claim;
Your injury or illness causes a loss of income;
You are medically unable to do your regular job, or you can only do modified work;
Your employer cannot offer suitable work within your restrictions; or
You return to work but earn less because of the injury.

LOE benefits are separate from WSIB health care benefits, treatment coverage, and Non-Economic Loss awards. If you want a broader overview of WSIB benefit types, read ClaimIt's guide on how much WSIB pays in Ontario.

How WSIB Calculates Your LOE Payments

The basic WSIB LOE formula is:

85% of your net average earnings before the injury, minus 85% of your net earnings after the injury.

The phrase net average earnings matters. WSIB is not usually calculating from your full gross pay. It estimates your after-tax earnings based on employment income, income tax, CPP, EI, and other rules in WSIB policy.

Here is a simplified example:

Example item	Amount
Pre-injury net average earnings	$900 per week
Post-injury net earnings	$300 per week
Net earnings loss	$600 per week
LOE benefit at 85%	$510 per week

This is only an example. Your real calculation can be affected by overtime, irregular hours, seasonal work, multiple jobs, self-employment, apprenticeships, wage increases, layoffs, and whether WSIB uses a short-term or long-term average earnings calculation.

If you are also wondering how these wage-loss payments are handled at tax time, read ClaimIt's guide to whether WSIB benefits are taxable in Ontario.

WSIB publishes policy on how it determines short-term average earnings and conducts final LOE reviews. Those policies are technical, which is one reason many workers ask a WSIB representative to review the math.

Short-Term vs Long-Term LOE Benefits

At the start of a claim, WSIB may use a short-term average earnings calculation. This is often based on what you were earning around the time of the injury.

Short-term calculations can work for workers with stable hours and regular pay. They can be less accurate for workers whose income changes week to week, including:

Construction workers;
Seasonal workers;
Part-time workers with variable hours;
Workers with overtime or shift premiums;
Workers with more than one job;
Commission or piece-rate workers; and
New hires who had not worked long before the injury.

For longer claims, WSIB may review and adjust the average earnings calculation. A long-term calculation may look at a broader period to decide what your normal earnings were. This can increase or decrease the LOE amount depending on the facts.

If your work history is not straightforward, do not assume WSIB's first number is correct. Ask for the calculation details in writing and compare them with your pay stubs, T4s, employment contract, overtime history, and records from any second job.

What Are Deemed Earnings and How Do They Affect Your Benefits?

Deemed earnings are one of the most stressful parts of WSIB LOE benefits. A deeming decision means WSIB believes you are able to earn a certain amount of money, even if you are not actually earning it.

For example, WSIB may decide that you can work in a suitable occupation earning $500 per week. WSIB can then treat that $500 as post-injury earnings when calculating your LOE benefit. This may reduce your payment even if no employer has hired you.

Deemed earnings often come up after return-to-work planning, work transition services, retraining, or a labour market assessment. The key dispute is usually whether the job WSIB selected is truly suitable and available for you.

A deemed earnings dispute may involve questions like:

Do your medical restrictions allow you to do the job safely?
Does the job match your education, skills, language ability, and work history?
Are the wages realistic in your local labour market?
Did WSIB ignore pain, medication side effects, mental health symptoms, or flare-ups?
Did WSIB rely on outdated or incomplete medical information?
Was the retraining plan reasonable and properly completed?

These cases are fact-heavy. If deemed earnings reduced your LOE benefits, collect the decision letter, the work transition documents, job search records, medical restrictions, and any emails about return to work. A representative can help identify the weak points in WSIB's reasoning.

WSIB LOE Reviews: When and Why Benefits Get Reduced

WSIB can review LOE benefits during the life of a claim. A review does not always mean your benefits will stop, but it can lead to a reduction if WSIB believes your wage loss has changed.

Common review triggers include:

New medical reports suggesting your condition has improved;
A return-to-work offer from your employer;
Modified duties or gradual return-to-work plans;
Surveillance, investigation, or information from the employer;
Completion of retraining or work transition services;
WSIB deciding you are not cooperating with treatment or return-to-work steps;
A change in actual earnings; or
A final LOE review.

The problem is that a paper review may not capture what your workday is really like. A doctor may say you can do light duties, while the actual job requires bending, standing, lifting, driving, repetitive use, or speed that your body cannot handle.

If WSIB proposes a reduction, respond with specifics. Explain what tasks you cannot do, why the modified work is not suitable, what symptoms happen during or after work, and what your treating providers say about your restrictions.

Common LOE Disputes and How to Fight Back

LOE disputes are common because they combine medical evidence, wage calculations, employment records, and WSIB policy. A small error can cost a worker hundreds of dollars per week.

Here are common disputes to watch for:

Average earnings errors: WSIB may miss overtime, shift premiums, second jobs, seasonal patterns, or recent wage increases.
Wrong return-to-work assumptions: WSIB may accept a modified job as suitable when it does not match your restrictions.
Deemed earnings: WSIB may reduce benefits based on a job you cannot realistically get or safely perform.
Medical recovery disputes: WSIB may decide your ongoing symptoms are no longer related to the workplace injury.
Non-cooperation findings: WSIB may reduce or suspend benefits if it believes you are not cooperating, even when you have a reasonable explanation.
Late or incomplete evidence: Missing medical records can make a valid claim look weak.

If you disagree with a decision, read the letter carefully. WSIB decision letters usually explain the decision, the evidence relied on, and the appeal deadline. For many return-to-work, work transition, and LOE decisions, the objection deadline may be short.

Before you miss a deadline, get a second opinion. Use ClaimIt to find a WSIB lawyer or paralegal who can review your decision letter, explain your options, and help you prepare the next step.

For appeal steps, see ClaimIt's guide on how to appeal a WSIB Loss of Earnings decision.

NEL Awards: Compensation for Permanent Impairment

A WSIB NEL award is not the same as LOE benefits. NEL stands for Non-Economic Loss. It is compensation for a permanent impairment caused by a workplace injury or illness.

Think of the difference this way:

LOE benefits address income you lose because your injury affects your ability to work.
NEL awards address permanent physical or psychological impairment, even if you are working.

A worker can sometimes have both. For example, you may receive LOE benefits because you cannot return to your old job, and you may also be assessed for a NEL award if you have a permanent impairment.

NEL assessments can become disputes when the rating is too low, the permanent restrictions are not fully recognized, or the impairment has worsened. A low NEL rating can also affect how seriously WSIB views your ongoing limitations in other parts of the claim.

How to Check Whether Your LOE Payment Looks Right

You do not need to be a lawyer to spot warning signs. Start by asking WSIB for a clear breakdown of the calculation and compare it with your own records.

Confirm the pre-injury earnings period. What weeks or months did WSIB use?
Check what income was included. Look for overtime, premiums, vacation pay, second jobs, and irregular earnings.
Compare gross and net numbers. Remember that LOE is based on net average earnings loss.
Review post-injury earnings. Make sure WSIB used accurate current wages, not an incorrect estimate.
Look for deemed earnings. If WSIB used earnings you are not actually receiving, find out why.
Match the decision to your medical restrictions. The work WSIB expects you to do should fit your real limitations.
Track deadlines. Write the objection deadline on a calendar right away.

Keep copies of everything: pay stubs, T4s, employer letters, job descriptions, modified work offers, medical notes, WSIB forms, and every decision letter. Organized evidence makes it easier to challenge a wrong reduction.

When Should You Speak With a WSIB Representative?

You may want legal help if your benefits were denied, reduced, suspended, or calculated in a way you do not understand. You may also want help before agreeing that a job is suitable if you know the work will make your injury worse.

Consider speaking with a WSIB lawyer or paralegal if:

Your LOE benefits were cut after a review;
WSIB says you can return to work but your doctor disagrees;
Your employer is pressuring you to accept unsuitable modified work;
WSIB has deemed earnings you are not actually making;
Your average earnings calculation seems too low;
You received a final LOE review decision;
You also have a NEL award or permanent impairment dispute; or
You are close to an appeal deadline.

ClaimIt is a marketplace, not a law firm. The platform helps injured workers compare verified WSIB lawyers and paralegals across Ontario. You choose who to contact, and the consultation is handled directly with the representative.

FAQ: WSIB Loss of Earnings

What does WSIB Loss of Earnings mean?

WSIB Loss of Earnings means wage-loss benefits for an allowed workplace injury or illness. They are intended to replace part of the income you lose because your injury prevents you from earning your pre-injury wages.

Does WSIB pay 100% of lost wages?

No. WSIB generally pays 85% of your net average earnings loss. Because the calculation is based on net earnings and not gross pay, the amount may be different from what you expect.

Can WSIB reduce my LOE benefits if I am not working?

Yes, in some cases. WSIB may reduce benefits using deemed earnings if it decides you are able to earn money in suitable work, even if you are not actually earning that amount. These decisions can be disputed.

How long do WSIB LOE benefits last?

It depends on your injury, medical recovery, ability to work, and WSIB reviews. Some workers receive benefits for a short period, while others may have longer-term entitlement if the work injury continues to cause wage loss.

What is the difference between LOE and a WSIB NEL award?

LOE benefits address wage loss. A NEL award compensates for permanent impairment. A worker may have one or both, depending on the claim facts.

What should I do if my LOE benefits were cut?

Read the decision letter, note the appeal deadline, request the calculation details, gather medical and wage evidence, and consider speaking with a WSIB representative before filing an objection.

Final Thoughts

WSIB Loss of Earnings benefits can be complicated, especially when your hours were irregular, your injury is permanent, your employer offers modified work, or WSIB says you can earn money in another job. The most important step is to get the decision and calculation in writing, then compare WSIB's assumptions with your real medical restrictions and wage records.

If something does not look right, do not wait. Appeal deadlines can pass quickly, and strong evidence is easier to gather early.

Need help with a WSIB LOE dispute? Browse verified WSIB lawyers and paralegals on ClaimIt and choose a representative who can review your benefits, deadlines, and appeal options.