Raise Wage Replacement to 85%

Summary#

This bill changes Nova Scotia’s workers’ compensation rules. It clarifies who is covered, raises the share of wages replaced when a worker is hurt, and updates the earnings cap used to set benefits.

• Sets a simple rule: all workers and employers are covered, except a short list (clergy in religious roles, professional athletes, domestic workers hired for work in a private home, and employers with fewer than three workers, along with their workers).
• Raises the wage-replacement rate in benefit calculations from 75% to 85%.
• Sets the maximum annual earnings used to calculate benefits and premiums at $120,000 for 2026.
• From 2027 on, adjusts that $120,000 cap each year by the Consumer Price Index (CPI), which tracks inflation.
• Removes several older rules tied to benefit calculations in the same section (details not provided in the bill text here).

What it means for you#

• Workers

  • If you are covered and get hurt on the job, the portion of your wages replaced by benefits would increase to 85%.
  • Your benefits will be based on your earnings up to $120,000 in 2026. If you earn more than that, the amount above the cap would not be counted.
  • The cap will rise with inflation starting in 2027, helping benefits keep pace with the cost of living.

• High earners

  • Benefits and employer premiums will use a maximum earnings figure of $120,000 in 2026, indexed in future years. Income above the cap is not used in calculations.

• Domestic workers (for example, nannies, housekeepers hired in a private home)

  • You are excluded from coverage under this Part. Your employer in a private home is also excluded.

• Professional athletes and clergy

  • Faith leaders acting in religious roles and pro athletes are excluded, as are the organizations that employ them in those roles.

• Employers

  • Most employers are covered by workers’ compensation under this Part.
  • Benefit payments for injured workers are calculated at 85% instead of 75%. The earnings cap used in calculations is $120,000 in 2026 and then indexed. This can affect premium amounts.

• Very small businesses (fewer than three workers)

  • You and your workers are excluded from this Part. The rules and costs under this Part would not apply to you.

Expenses#

No publicly available information.

Proponents' View#

• Raises the wage-replacement rate to 85%, which supporters say reduces financial hardship for injured workers and their families.
• Sets a clear, modern earnings cap and ties it to inflation so benefits keep up with rising prices.
• Uses a simple coverage rule (covered unless in a short list of exceptions), which backers say improves fairness and clarity.
• Eases administrative burden on households and micro-businesses by excluding domestic workers and very small employers.
• Cleans up the law by removing outdated or unnecessary rules in the benefit section.

Opponents' View#

• Higher benefit levels and a higher earnings cap could raise employer premiums, which some say may strain small and mid-sized businesses.
• Excluding domestic workers and very small workplaces leaves some workers without protection if they get hurt on the job.
• Tying the cap to inflation could lead to ongoing premium increases, especially in high-inflation years.
• Repealing several detailed rules without clear replacements may create uncertainty until new guidance is issued.