NEWS RELEASE: Victory for Workers as Government Tables Bill to Increase Income Replacement Rate for Workers’ Compensation to 90%

For Immediate Release: Friday, November 6, 2026

ST. JOHN’S, NL – The Newfoundland and Labrador Federation of Labour (NLFL) is celebrating a victory for injured workers today, as the provincial government introduced legislation to increase the income replacement rate for workers’ compensation to 90 per cent. This legislative change marks the culmination of years of advocacy by the labour movement and delivers on a long-overdue recommendation from the last statutory review of the workers’ compensation system.  

“This is a big win for workers in Newfoundland and Labrador,” said NLFL President Jessica McCormick. “For years, we have been saying that the 85 per cent net replacement rate was pushing injured workers and their families into financial hardship. For years, injured workers, their families, and the province’s labour movement have been calling for this change. Today, that persistence has paid off; government has listened and injured workers will be better off for it.” 

Income replacement is paid out of the WorkplaceNL Injury Fund, which is currently sitting at 139.5 per cent funded; well above its target range of 100 to 115 per cent. Despite this, injured workers in Newfoundland and Labrador have received workers’ compensation benefits equal to only 85 per cent of net earnings – one of the lowest rates in the country. For a worker coping with a workplace injury, that gap between pre-injury earnings and compensation often meant financial hardship. 

“With the injury fund at such a high level, we have been saying for some time that the only question was whether the government had the political will to act – today they have proven that they do,” added McCormick.  
 
The Federation of Labour will continue to press government to improve the workers’ compensation system. For example, the Federation will continue to call for the removal of the arbitrary earnings ceiling that caps compensable earnings at just over $80,000; a limit that leaves higher-paid workers facing the same maximum benefit as someone earning far less, despite suffering a much larger income loss. This cap is the second lowest in the country.  

“Today, we celebrate. Tomorrow, we keep organizing,” said McCormick. “This victory shows what workers can achieve when we stand together and we intend to keep standing together until the workers’ compensation system is fair for everyone it exists to serve.” 

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