The Provincial Government is continuing to strengthen financial support for workers who have experienced a workplace injury or illness. Bill 31, An Act to Amend the Workplace Health, Safety and Compensation Act, 2022 No. 2, advanced to second reading today in the House of Assembly. If passed, it would increase the income replacement rate from 85 to 90 per cent of a worker’s net pre-injury earnings, subject to maximum earnings, beginning December 1, 2026.

Approximately 8,000 workers receive wage-loss benefits from WorkplaceNL each year. For a worker earning $50,000 annually, the increase would provide almost $2,000 more a year. A worker earning at or above maximum earnings would receive more than $2,900 annually. The increase would apply to both short- and long-term wage-loss benefits, as well as benefits for eligible dependents when a worker passes away as a result of a workplace injury or illness.

WorkplaceNL’s Injury Fund would cover the estimated one-time $60.7 million increase in benefit liability. The Injury Fund is supported by employer assessments and investment returns. Increasing the income replacement rate to 90 per cent was recommended in the 2019 statutory review of the workers’ compensation system and remains an outstanding recommendation. This change would fulfil that recommendation and bring Newfoundland and Labrador in line with most other Canadian jurisdictions.

Bill 31 builds on Bill 10, introduced earlier this year to strengthen retirement benefits for workers with a workplace injury or illness. It also complements the Provincial Government’s broader affordability measures. Since October 22, the Provincial Government has announced an additional $143 million in affordability measures including the Seniors Affordability Payment, the Churchill Falls Electricity Rebate, doubling the maximum Home Heating Supplement, removal of the provincial gas tax on gasoline and diesel from December 1, 2026, to March 31, 2027, and introducing a one-time $500,000 fuel subsidy that will help residents in seven Labrador communities to access heating fuel at a price comparable to the lowest available rate in Labrador during the winter fuel price freeze. Together with Budget 2026 initiatives, these measures total more than $340 million in targeted affordability relief to help Newfoundlanders and Labradorians.

 Quotes
“A workplace injury or illness can change someone’s life very quickly. Along with the physical and emotional impact comes the financial worry of paying the mortgage or rent, buying groceries, and supporting a family when a regular paycheque is no longer coming. Workers should be able to focus on getting better, not on how they will make ends meet. Increasing the income replacement rate to 90 per cent will provide greater financial security for workers and their families when they need it most. We have heard those calling for better support, and we have listened.”
The Honourable Lloyd Parrott
Minister of Government Services
Minister Responsible for WorkplaceNL

“A workplace injury or illness can have a significant impact on a worker and their family. Increasing the income replacement rate means greater financial support at a time when workers need to focus on their health and recovery. We welcome this positive change and the additional security it will provide to injured workers and their families.”
Elizabeth Lane
CEO, WorkplaceNL

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Provincial Government Strengthens Retirement Benefits for Workers with a Workplace Injury or Illness

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