Bodily Injury & Fatalities

How We Calculate Your Income Replacement

To calculate your income replacement properly, we need accurate and complete information from you.

First, we classify your employment status, based on your employment situation at the time of the accident:

  • full-time earner
  • part-time earner
  • temporary earner
  • non-earner
  • minor
  • student
  • someone who couldn't work at the time of the accident because of a physical or mental condition

This classification relates to the amount of income replacement you'll receive and the need to reclassify your employment status in certain cases.

The law distinguishes between full-time earners, part-time, temporary and non-earners.

It would be unfair to lock in the amount of income replacement paid to people who were employable and could have held full-time work but did not happen to be working when the accident happened.

We reassess the employment status of non-earners, part-time earners and temporary earners if they are still unable to work because of the accident 180 days (six months) after it occurred.

Mario worked for 15 years as a shipper in a factory. Four months ago, the factory closed. Mario was lucky enough to find a new full-time job in a large retail outlet, but for less pay. Last week, Mario lost control of his car and was seriously injured. Mario is a temporary earner because he hasn't worked at his current job for one year. Mario will receive income replacement based on his salary at his new job for 180 days (six months).

If he's still unable to return to work after 180 days, we'll reassess his employment status and base income replacement on the type of work he was capable of doing at the time of the accident. Income replacement after six months won't be less than the amount he received for the first six months.

Next, we establish your gross yearly employment income - also known as the total of gross yearly income from salaried employment and self-employment. We consider all employment income that you lose (because of injuries sustained in the accident) for the income replacement calculation, including Employment Insurance benefits or National Training Allowance benefits.

There are many details concerning the way we calculate gross yearly employment income that we can't describe here. For example, your case manager can explain how we factor in shift premiums, periodic overtime, seasonal fluctuations in income, sick credits and vacation time when establishing gross yearly employment income. The key is to make sure that we have all the information we need to do the calculation.