In 2025, the Wage Earner Protection Program (WEPP) continues to be a vital safety net for Canadian workers whose employers become insolvent.
Under the latest update, the maximum WEPP benefit has been set at $8,844.22, designed to help compensate for unpaid wages, vacation pay, severance, and termination pay when an employer files for bankruptcy or receivership.
In this guide, we’ll walk you through the eligibility requirements, how payments are calculated, application steps, and important deadlines — all critical for making sure you don’t miss out.
The WEPP is a federal benefit administered through Service Canada that aims to protect employees when their employers undergo insolvency proceedings. It ensures workers can reclaim certain amounts owed, which might otherwise be difficult to recover through standard bankruptcy procedures.
In 2025, the maximum benefit is calculated as:
- 7 times the maximum weekly insurable earnings under the Employment Insurance (EI) Act, which comes to $8,844.22.
- The program covers unpaid wages, vacation pay, termination pay, and severance pay, provided they were earned in the eligibility period.
- There is no 6.82% deduction anymore for bankruptcies/receiverships that occurred from November 20, 2021 onward.
| Feature | Detail (2025) |
|---|---|
| Maximum WEPP Benefit | $8,844.22 (7 × max weekly insurable earnings) |
| Covered Amounts | Wages, vacation pay, termination pay, severance pay. |
| Earnings Period | Amounts earned during the six-month window before insolvency. |
| Application Deadline | 56 days from the date of termination or insolvency (whichever is later). |
| Processing Timeline | Service Canada aims to process claims within ≈ 35 days after full submission. |
| Tax Treatment | WEPP amounts are taxable and will be reported on a T4A slip. |
To successfully claim WEPP in 2025, you must satisfy all of the following conditions:
- Employer Insolvency
Your employer must have declared bankruptcy, entered receivership, or be part of another qualifying insolvency proceeding. - Employment Termination
Your employment must have ended as a direct result of the employer’s insolvency — or you must have been terminated within six months prior to the insolvency. - Amounts Owed
You must be owed eligible payments (wages, vacation pay, severance, termination pay) that were earned during the six-month window before insolvency. - Exclusions
You are not eligible if you were:- A corporate director, officer, or major owner with decision-making authority.
- In a position to influence payroll or insolvency decisions.
- Trustee / Receiver Information Form (TIF)
The trustee or insolvency receiver must file a Trustee Information Form (TIF) with Service Canada to initiate your ability to claim. Without that, you can’t proceed.
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- The maximum ceiling is $8,844.22 — your payment can’t exceed that, even if your unpaid amount is higher.
- If you’ve already received a partial payment to cover what you’re owed (from the bankruptcy trustee or receiver), that amount will be deducted from your WEPP entitlement.
- Because the 6.82% reduction has been removed for qualifying insolvency dates post-Nov 2021, you receive the full entitlement without that prior cut.
Follow these steps to submit your claim effectively:
- Wait for Trustee / Receiver’s TIF Submission
The insolvency trustee must first file the TIF with Service Canada. This is mandatory to open the process. - Submit a Proof of Claim
You need to file a Proof of Claim with the trustee/receiver, listing what you’re owed (wages, vacation, severance, etc.). Keep pay stubs, contracts, ROEs, and other documentation. - Apply to WEPP via Service Canada
- Timeline: You must apply within 56 days after job loss or insolvency date, whichever is later.
- Method: You can apply online (through Service Canada) or via paper form at a Service Canada Centre.
- Wait for Processing & Payment
Once submitted (with all documents), claims are usually processed in about 35 calendar days. Payment is made via direct deposit or mailed cheque if needed. - If Denied
If your claim is rejected, you may:- Request reconsideration, providing additional evidence
- Seek legal or employment law advice
- File a creditor claim in the insolvency process as a backup
