Loss of earnings benefits are paid to eligible workers based on the difference between their average earnings and the earnings they are estimated to be capable of earning at suitable employment.
To establish loss of earnings, WorkSafeNB determines the average earnings for all workers, including younger workers, in accordance with Policy 21-210 Determining Average Earnings.
The Workers’ Compensation Act (WC Act) provides WorkSafeNB with the authority to adjust a worker’s average earnings to reflect a probable increase in their earnings over time due to their age and ongoing occupational, trade, technical or professional training.
In exceptional circumstances and on a case-by-case basis, WorkSafeNB may consider increasing the average earnings of a worker who is 30 years old or older due to their learning status, specific career plan and related probable increase in their average earnings.
1. When determining whether the average earnings of a younger worker would have likely increased because of ongoing training, WorkSafeNB will consider evidence such as if, on the date of accident, the younger worker:
Calculating increases to average earnings
2. When, in WorkSafeNB’s opinion, the younger worker’s average earnings would have increased, WorkSafeNB calculates benefits in one of two ways depending upon whether:
When a specific career plan exists
3. Younger workers who have a specific career plan in place on the date of accident will have their average earnings estimated at the entry-level wage for that occupation. This happens when:
4. When the entry-level wage for a specific career plan is less than 50% of the maximum annual earnings for the year, WorkSafeNB will calculate the increase as if no specific career plan exists as it provides a greater benefit to the worker.
5. WorkSafeNB uses national, regional and/or local labour market information to determine the entry-level wage of specific occupations.
When no specific career plan exists
6. Statistics Canada shows that as workers age their earnings increase. Therefore, younger workers who do not have a specific career plan in place on the date of accident will have their average earnings estimated at 50% of the maximum annual earnings for the year in which the rehabilitation is complete and the worker has a permanent disability.
37, 38.1(1), 38.1(3), 38.1(4), 38.11(1), 38.11(12), 38.11(13), 38.11(14), 38.101(1), 38.101(4), 38.101(5) and 38.101(6).
Average earnings – the daily, weekly, monthly or regular remuneration that the worker was receiving at the time of the injury or recurrence of the injury, or receiving previously, or at the time of the loss of earnings, or at the time of death, that the Commission considers best represents the earnings of the worker, unless it is established to the satisfaction of the Commission that under normal circumstances, based on the worker’s age and ongoing occupational, trade, technical or professional training the earnings would probably increase, in which case this fact should be considered in determining the worker’s average earnings and in no case shall average earnings exceed the maximum annual earnings. (Workers’ Compensation Act)
Estimated capable earnings – the earnings that represent the amount a worker is capable of generating in a suitable occupation following a workplace accident, based on labour market information for New Brunswick.
Loss of earnings – average net earnings minus the net earnings the worker is estimated to be capable of earning at a suitable occupation after sustaining the injury. (adapted from the Workers’ Compensation Act)
Maximum annual earnings – an amount equal to 1.6 times the New Brunswick Industrial Aggregate Earnings (NBIAE), which is set by the Commission as of the first day of January of each year. (adapted from the Workers’ Compensation Act)
Younger worker – a worker who is under the age of 30 on the date of accident.