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Average Earnings
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Average Earnings
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Average Earnings
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Compensation Rate
Workers' compensation rates are generally based on a percentage of the injured worker's average earnings or loss of earnings. Earnings for this purpose may be gross or net earnings. This paper discusses the history of the 75% gross compensation rate in British Columbia and the 90% net compensation rate in other jurisdictions, more recent developments with respect to the establishment of compensation rates, and the adequacy, equity, cost, and return-to-work incentive factors that might be considered in evaluation of alternatives. The appendix includes a series of tables setting out various net income calculations which may assist in considering these issues.
Average Earnings
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Average Earnings
Calculation of benefits under the British Columbia Workers' Compensation Act has always been related to a worker's average earnings. This paper begins with an overview of what various commissions have decided with respect to the average earnings provisions of the Act, and the process conducted since 1989 to revise the average earnings policy. It then discusses the following issues related to average earnings: whether benefits should be related to average gross or average net earnings; whether income replacement payments and fringe benefits should be included in the composition of average earnings; administration of average earnings policy; determination of average earnings on new claims; compensation rate changes; determination of average earnings on reopening; the maximum wage rate; personal optional protection; and average earnings and occupational disease claims.
Average Earnings
None
Average Earnings
None
Average Earnings
None
