Document name
Maximum Wage Rates
Document number
POL 07/2020

Effective date: January 1, 2020

Application: Applies to all injury claims.

Policy subject: Benefits for Workers - Initial benefits

Purpose:

To establish the annual maximum wage rates pursuant to The Workers' Compensation Act, 2013.

DEFINITION

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Average weekly wage means the average weekly wage of the industrial composite for Saskatchewan as determined by the Board for a year form information published by Statistics Canada (Section 2).

BACKGROUND

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  1. Effective January 1, 2014, The Workers’ Compensation Act, 2013 (the “Act”), provides for an increase to the maximum wage rate for all current claims and for all new injuries (Section 37).
    1. The maximum wage rate for a worker who sustains an injury prior to January 1, 2014 will be adjusted annually in accordance with the percentage change in Saskatchewan’s average weekly wage (Sections 37(1) and 182).
    2. The maximum wage rate for a worker who sustains an injury on or after January 1, 2014 will be adjusted annually to equal to 165% of the product of Saskatchewan’s average weekly wage and 52 (Sections 37(2)(a) and 37(3)).
  2. On March 18, 2020, the Government of Saskatchewan declared a provincial State of Emergency to address the coronavirus pandemic (i.e., COVID-19). Public health orders were implemented to protect Saskatchewan residents and reduce the risk of potential transmission in the province. The closure of non-essential businesses impacted industry sectors with relatively lower average weekly earnings. Therefore, for the calculation of the maximum wage rates, it is the Board Members’ view that it would be fair and equitable for Saskatchewan workers and employers to use Saskatchewan’s March average weekly wage prior to the economic shutdown.
  3. The provincial average weekly wage as of March 2020 was $1,061.77. The average annual wage was $55,212.04.

POLICY

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  1. Effective January 1, 2021, the Board directs the maximum wage rates to be as follows:
    1. For injuries sustained prior to January 1, 2014:

Effective Date

Maximum Wage Rate

January 1, 2013

$55,000

January 1, 2014

$57,037

January 1, 2015

$58,941

January 1, 2016

$58,941

January 1, 2017

$59,127

January 1, 2018

$60,441

January 1, 2019

$62,038

January 1, 2020

$62,454

January 1, 2021

$63,995

    1. For injuries sustained on or after January 1, 2014:

Effective Date

Maximum Wage Rate

January 1, 2014

$59,000

January 1, 2015

$65,130

January 1, 2016

$69,242

January 1, 2017

$76,086

January 1, 2018

$82,627

January 1, 2019

$88,314

January 1, 2020

$88,906

January 1, 2021

$91,100

  1. A decrease in Saskatchewan’s average weekly wage would result in a reduced maximum wage rate, which the Board considers to be unfair to the worker. Therefore, it is the Board’s intent that if the average weekly wage for the current year is less than the average weekly wage for the previous year, there will be no adjustment in the maximum wage rates.
  2. In any given year, the Consumer Price Index (CPI) adjustment may be higher than the percentage change in the maximum wage. For workers subject to the maximum wage rate, a higher CPI adjustment to their earnings capacity would result in reduced benefits. Therefore, for workers subject to the maximum wage rate, it is the Board’s intent that adjustments to earning capacity will not exceed adjustments to the maximum wage rate.
  3. In accordance with Section 69, any adjustments in a worker’s average weekly earnings because of an increase in the maximum wage rates will occur on the anniversary date of the original commencement of loss and will be subject to the maximums noted above. POL 07/2013, Consumer Price Index (CPI) – Annual Indexing, will apply.

Policy references

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Section heading

Legislative Authority

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The Workers’ Compensation Act, 2013 
Sections 2(1)(b), 2(1)(u), 37, 69, 72, 182

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Document History

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(1)    POL and PRO 09/2019, Maximum Wage Rates – 2020 (effective January 1, 2020 to December 31, 2020).
(2)    POL and PRO 04/2018, Maximum Wage Rates – 2019 (effective January 1, 2019 to December 31, 2019).
(3)    POL and PRO 15/2017, Maximum Wage Rates – 2018 (effective January 1, 2018 to December 31, 2018).
(4)    POL and PRO 20/2016, Maximum Wage Rates – 2017 (effective January 1, 2017 to December 31, 2017).
(5)    POL and PRO 08/2015, Maximum Wage Rates – 2016 (effective January 1, 2016 to December 31, 2016).
(6)    POL and PRO 17/2014, Maximum Wage Rates – 2015 (effective January 1, 2015 to December 31, 2015).
(7)    POL and PRO 25/2013, Maximum Wage Rates – 2014 (effective January 1, 2014 to December 31, 2014).
(8)    POL 02/2003, Section 38.1 – Maximum Wage Rate (effective January 1, 2003 to December 31, 2014).
(9)    POL 14/2012, Compensation Rate – Maximum – Section 38 (effective January 1, 2013 to December 31, 2013).
 

Section heading

Complements

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