What is average weekly earnings in Canadian workers' comp?
Average weekly earnings is the board's measure of your normal pay before the injury, used to set wage-loss benefits. It is typically your gross annual employment income (including regular overtime) divided by 52, then capped at the annual insurable earnings ceiling and converted to net average earnings after tax, CPP, and EI.
Does overtime count toward average earnings?
Regular, recurring overtime is generally included because it reflects your normal earning pattern. Occasional or one-off overtime may be treated differently. Including consistent overtime raises your average earnings and therefore your wage-loss benefit, up to the insurable maximum.
Why does the board use net rather than gross earnings?
Because workers' compensation benefits are tax-free, boards calculate on net average earnings (your pay after income tax, CPP, and EI) so the benefit approximates your take-home pay without overcompensating you compared to when you were working.
What is the annual insurable earnings maximum?
Each province caps the amount of earnings on which benefits are calculated. In Ontario the 2024 ceiling is about $112,500. If you earn more than the ceiling, your benefit is based only on the capped amount, so high earners replace a smaller share of their actual income.