2010 benefits indexation

The 2010 indexation rate for those receiving full loss of earnings benefits is 0.4%. A worker who received $1,000 bi-weekly in 2009 should receive $1,004 bi-weekly in 2010. Workers who do not receive full loss of earnings benefits will receive a 0.5% increase. The government had made very minimal efforts to compensate for the loss of prior inflation indexing with 2.5% increases in 2007, 2008 and 2009, but these efforts have essentially come to a halt.

For workers not receiving full loss of earnings benefits, the current benefit indexation formula is 1/2 Consumer Price Index (CPI) -1%. So, if the CPI is 4%, these workers receive 1/2 X 4% -1 or 1%. The maximum indexation is 4%. For workers who receive full loss of earnings benefits, benefits are increased by the CPI.

All workers had automatic annual indexation at the rate of CPI prior to 1995. Partial indexation was introduced that year. The current formula came into force in 1998. Even with the 2007-2009 corrections, a worker injured in 1998 has lost 17% to inflation since then.