Workers Compensation Board of Prince Edward Island

Wage Loss

The purpose of the workers compensation system is to reduce the impact of workplace injury. If your work injury or illness causes you to miss time from work, you may be eligible for wage loss benefits.

The WCB provides two types of wage loss benefits based on your loss of earning capacity: temporary wage loss benefits and extended wage loss benefits.

Temporary Wage Loss

The temporary wage loss benefits payable to you are calculated using your pre-injury income. Your wage loss benefits are equivalent to 85% of your net annual earnings up to the current maximum annual earnings limit.
  • Net earnings are your gross earnings less amounts representing probable deductions for income tax payable, Canada Pension Plan and Employment Insurance premiums.
  • The maximum annual earnings amount is adjusted on January 1st of each year. The maximum annual earnings for 2021 is $55,300. Contact us for the maximum for previous years.
Only the wages you earn from employment with insured employers, as well as any employment insurance benefits you received, are used to calculate your wage loss benefits. The WCB may consider your earnings from any continuous 52 week period within the two years prior to your accident date in this calculation.

Wage loss benefits are tax free, however you need to report them to Revenue Canada.

These benefits may continue as long as you are unable to work, as supported by medical evidence, and you are participating in your recovery.


Temporary wage loss benefits are paid by direct deposit or cheque on a biweekly basis, and continue as long as your workplace injury or illness causes a temporary loss of earning capacity.

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Extended Wage Loss Benefits

You may be eligible for extended wage loss benefits if:
  • You have an impairment as a result of your workplace injury or illness.
  • Your medical condition has stabilized.
  • Your rehabilitation process is completed.
  • An actual or estimated loss of earning capacity exists.
  • Your accident date is on or after January 1, 1995.

Estimating Earning Capacity

In order to determine your entitlement to extended wage loss benefits, the WCB may estimate your earning capacity. This is done when:
  • You are eligible for extended wage loss benefits, and
  • You are unable to return to pre-injury employment or obtain suitable alternate work or you choose not to seek or accept available suitable work
To estimate your earning capacity, the WCB considers the following:
  • Your pre-injury employment.
  • Your capabilities, education and work experience.
  • The average wages of the available suitable work.
  • Geographic location and labour market research.
More information is available in the WCB Extended Wage Loss Benefits policy.

Review of Extended Wage Loss

Extended wage loss benefits are reviewed to ensure your benefits adequately compensate you for your loss of earning capacity:
  • An initial review is done at the time extended wage loss benefits are established.
  • A review takes place 36 months after the effective date of your extended wage loss benefits.
  • If necessary, a final review may take place 24 months after the 36 month review.


Extended Wage Loss benefits are paid bi-weekly by direct deposit. Changes to bank account information should be submitted in writing at least ten days prior to the payment date.

More information is available from your case coordinator and in the WCB's Extended Wage Loss brochure.

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Wage loss benefits may be payable until loss of earning capacity ends or until you reach age 65. If you are 63 or older at the time of injury, however, you may receive benefits for a maximum of two years.

After age 65, you may be eligible for retirement benefits. For more information please refer to the WCB Annuity policy and the WCB Pensions Replacement policy.

Be sure to report all sources of income to the WCB. Your benefits may be reduced by other sources of income you receive while your claim is active. This includes, but is not limited to, collateral benefits from your employer, Employment Insurance, or Canada Pension Plan. Please contact your case coordinator or refer to the WCB Collateral Benefits policy for details.

If you have questions about wage loss benefits, please contact your entitlement officer or case coordinator.

More information is also available in the WCB's Information for Workers booklet and our wage loss benefits policies.

If you can't find what you are looking for, or would like a copy of a form or publication, contact us.