DEFINITION:Short-term disability (STD) in Canada refers to a type of income replacement program that provides financial benefits to individuals who are unable to work due to a temporary illness, injury, or other medical condition.
1. What is the purpose of short-term disability benefits in Canada?
Short-term disability benefits aim to partially replace the lost income of individuals who are unable to work for a short period due to medical reasons. It helps maintain financial stability during this time.
2. Who is eligible for short-term disability benefits in Canada?
Eligibility for short-term disability benefits may vary depending on the specific insurance plan or program. Generally, individuals who contribute to an employer-sponsored or privately-held disability insurance plan are eligible, subject to certain criteria and waiting periods.
3. How long do short-term disability benefits last?
The duration of short-term disability benefits can range from a few weeks to several months, depending on the insurance plan or program. Typically, benefits are payable for a maximum of 15-26 weeks, but this can vary.
4. Are short-term disability benefits taxable in Canada?
In most cases, short-term disability benefits are taxable in Canada. If your employer pays the premiums for the disability insurance plan, the benefits received are generally considered taxable income according to the Canada Revenue Agency (CRA).
5. How much do short-term disability benefits pay?
The payment amount for short-term disability benefits is typically a percentage (e.g., 60-70%) of your regular salary or wages. However, there may be caps or limits on the total amount payable under the specific insurance plan or program.
6. Can you receive other benefits simultaneously with short-term disability in Canada?
It is possible to receive other benefits in conjunction with short-term disability benefits. For example, individuals may be eligible for Employment Insurance (EI) sickness benefits concurrently, depending on their circumstances and the specific program requirements.
7. Can an employer terminate an employee on short-term disability leave?
While being on short-term disability leave, an employer cannot terminate an employee solely based on their medical condition or incapacity to work. However, if the employee’s absence becomes prolonged, and they are no longer able to fulfil the essential functions of their job, the employer may consider termination, subject to applicable labor laws and regulations.