The Ontario government has proposed the most significant changes to the Workplace Safety and Insurance Act (WSIA) in nearly three decades, introducing measures that will increase benefits for injured workers and expand mandatory coverage.
First Benefit Increase in 30 Years
Under the proposed Protecting Ontario’s Workers and Economic Resilience (POWER) Act, 2026, the Loss-of-Earnings (LOE) benefit rate will increase from 85% to 90% of a worker’s pre-injury net average earnings. This marks the first increase to income replacement benefits since 1998.
Additionally, the legislation proposes eliminating the age-65 cutoff for LOE benefits. Workers who can demonstrate an intent to continue working past age 65 will now be eligible to receive ongoing benefits, subject to WSIB assessment.
Expanded Coverage for Care Workers
The amendments will also mandate WSIB coverage for all residential care facilities and group homes, regardless of whether they are publicly or privately operated. This change is expected to bring approximately 29,000 frontline care workers — including Personal Support Workers and nurses — under the WSIB umbrella.
Employer Takeaway: The increase in LOE benefits to 90% will likely lead to higher overall claim costs and potential premium increases. Employers must double down on proactive Return-to-Work planning and provide suitable modified duties as quickly as possible to mitigate these rising costs.
