WSIB Loss of Earnings (LOE) Benefits Explained (2026)

Injured workers in Ontario receive 85% of their pre-injury net earnings through WSIB's Loss of Earnings benefits. But how much you actually receive depends on several factors—and there's a critical review at 72 weeks that could reduce your payments.

Understanding how LOE benefits work isn't just helpful—it's essential for protecting your income. This guide breaks down the 85% formula, explains the difference between short-term and long-term benefits, and shows you exactly what to expect (and prepare for) at the 72-week review.

What Are LOE Benefits?

LOE benefits compensate you for the difference between what you earned before your injury and what you can earn afterward. They're designed to maintain your financial stability while you recover or adjust to permanent limitations.

The 85% Formula

WSIB calculates LOE benefits using this formula:

LOE = (Pre-Injury Net Earnings - Post-Injury Net Earnings) x 85%

Example Calculation

• Pre-injury weekly net earnings: $1,000
• Post-injury weekly earnings: $400 (working modified duties)
• Wage gap: $1,000 - $400 = $600
• LOE benefit: $600 x 85% = $510 per week

If you cannot work at all, your post-injury earnings are zero, and you receive 85% of your full pre-injury net earnings.

Full LOE vs. Partial LOE

Understanding the distinction between these two types is important:

• Full LOE: You cannot work at all due to your injury. You receive 85% of your full pre-injury net earnings.
• Partial LOE: You can work in some capacity but earn less than before. You receive 85% of the wage gap between your pre-injury and current earnings.

As your condition improves and you take on more work, your benefits may decrease proportionally.

Short-Term Disability (STD) vs. Long-Term Disability (LTD)

LOE benefits have two phases with different rules:

Short-Term Disability Phase

The initial period after your injury. During STD:

• Benefits are based on your actual earnings at the time of injury
• Focus is on recovery and return to pre-injury job
• WSIB works with you and your employer on accommodation

Long-Term Disability Phase

After the initial recovery period, WSIB may recalculate your benefits based on Long-Term Average Earnings, which considers your earnings history over a longer period. This can increase or decrease your benefits depending on your work history.

The 72-Week Work Transition Review

At the 72-week mark, WSIB conducts a major review of your claim:

• Your earning capacity is formally reassessed
• A Suitable Occupation (SO) may be identified based on your abilities
• Your benefits may be adjusted to reflect what WSIB believes you could earn

This is a critical milestone. WSIB may reduce your benefits based on what they determine you are capable of earning in a suitable occupation, even if you haven't actually found or started that job. Prepare for this review by documenting your limitations and job search efforts.

How Pre-Injury Earnings Are Calculated

WSIB examines your earnings in the 12 months before injury, including:

• Regular wages and salary
• Overtime pay
• Bonuses and commissions
• Shift premiums
• Average of variable income

Self-employed workers and those with irregular income may have more complex calculations.

Tips for Ensuring Accurate Benefits

1. Keep pay stubs and T4s from before your injury
2. Report all income sources including overtime, bonuses, and tips
3. Review your LOE calculation letter carefully when received
4. Challenge errors promptly if your earnings seem incorrect
5. Track modified duties earnings if you return to work partially
6. Document your limitations thoroughly before the 72-week review

What Can Reduce Your Benefits?

Be aware of factors that may reduce your LOE:

• Returning to work or increased earnings
• The 72-week work transition review determination
• Non-compliance with return-to-work obligations
• Retirement eligibility (benefits may end at age 65)

Know What You're Owed

Don't wait for WSIB to tell you what your benefits should be. Understand your entitlement before you receive that first payment.

ClaimNexus helps you stay informed:

• LOE Calculator – Estimate your weekly benefits using the 85% formula
• 72-week timeline tracking – Know exactly when your review is coming
• Document storage – Keep pay stubs, T4s, and earnings records organized
• AI-powered guidance – Get plain-English answers about WSIB policies

Actual benefits depend on WSIB's assessment, but you should never be in the dark.

Calculate your benefits →

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This guide provides general information about WSIB Loss of Earnings benefits. For advice specific to your situation, consult WSIB directly or speak with a licensed representative. This is not legal advice.