There is no single short-term disability payment amount in Canada. Most plans replace a percentage of your pre-disability earnings, up to a maximum weekly or monthly benefit set by the plan. Your actual payment depends on the benefit formula, the earnings covered, any maximum limit, taxes and other income that may reduce the benefit.

A simple short-term disability calculation may look like this:

Eligible weekly earnings × benefit percentage = gross weekly STD benefit

However, that calculation can change if your plan has a maximum payment, uses a tiered formula, excludes certain earnings or reduces benefits because of other income.

This guide explains how short-term disability benefits are calculated, what percentage of your salary you may receive, why your payment may be lower than expected and what to do if there is a problem with your benefits.

💡 Your salary alone does not determine your STD payment. The insurance plan’s benefit percentage, definition of earnings and maximum benefit are just as important.

On This Page:

How Much Does Short-Term Disability Pay?

Short-term disability usually pays a portion of the income you earned before becoming unable to work.

The exact amount is determined by your employer’s benefits plan or private insurance policy.

Your payment may be based on:

  • a percentage of your weekly earnings
  • a percentage of your monthly earnings
  • a tiered formula that replaces different percentages of different portions of your income
  • a fixed weekly benefit
  • a benefit percentage subject to a maximum payment

For example, a plan might say that benefits are based on a stated percentage of eligible weekly earnings, up to a maximum amount.

The exact numbers that apply to you should be found in:

  • your benefits booklet
  • your insurance policy
  • your online benefits portal
  • your short-term disability approval letter
  • information provided by your employer or benefits administrator

For a broader explanation of coverage and eligibility, visit our guide to short-term disability in Canada.

Is There A Standard STD Payment In Canada?

No. Canada does not have one standard short-term disability payment for every employee.

Two people earning the same salary can receive different STD benefits because they have different:

  • insurance plans
  • benefit percentages
  • maximum benefit limits
  • definitions of eligible earnings
  • tax treatment
  • other income or benefits
⚠️ Do not rely on a coworker’s payment, an online percentage or another employer’s plan to calculate your own STD benefits. Check the plan that covers you.

How Is Short-Term Disability Calculated?

A basic short-term disability benefit calculation often has three steps:

  1. Determine your eligible pre-disability earnings.
  2. Apply the benefit percentage in the plan.
  3. Apply any maximum benefit or other adjustment required by the policy.

The simplest formula is:

Eligible earnings × STD benefit percentage = gross disability benefit

For example:

$1,000 eligible weekly earnings × 60% = $600 gross weekly STD benefit

However, many claims are more complicated.

Your insurer may also need to determine:

  • which earnings count under the plan
  • what period is used to calculate your income
  • whether a maximum weekly benefit applies
  • whether the formula uses different income tiers
  • whether other benefits reduce the payment
  • whether taxes or other deductions apply

What Are Pre-Disability Earnings?

Pre-disability earnings are the earnings used to calculate your benefit before you became unable to work.

The policy may define these as:

  • regular weekly earnings
  • regular monthly earnings
  • basic salary
  • insured earnings
  • another defined income amount

The definition matters because not every form of workplace compensation is automatically included.

Which Date Is Used To Calculate Your Income?

The plan may use earnings from:

  • the date immediately before your disability began
  • a recent average period
  • the insured salary reported by your employer
  • another period defined by the policy

This can be particularly important if you recently received:

  • a raise
  • a promotion
  • a reduction in hours
  • a change in commission
  • a move from full-time to part-time work

If you have not yet submitted your claim, read our step-by-step guide on how to apply for short-term disability in Canada.

What Percentage Of Your Salary Does Short-Term Disability Pay?

There is no universal short-term disability percentage in Canada.

The percentage must be found in the plan that covers you.

For illustration, a plan could calculate benefits using:

  • 55% of eligible earnings
  • 60% of eligible earnings
  • 66.67% of eligible earnings
  • 70% of eligible earnings
  • another percentage or formula

These are examples of how a plan could be structured. Your own percentage may be different.

Why Does The Benefit Percentage Matter?

Consider two employees who each earn $1,200 per week.

Benefit Formula Gross Weekly Benefit Before Limits
55% of earnings $660
60% of earnings $720
66.67% of earnings Approximately $800
70% of earnings $840

These examples assume there is no lower maximum benefit, offset, tax or other adjustment.

📌 The percentage shown in your plan is only the starting point. A maximum benefit can reduce the actual payment for higher-income employees.

Are Some STD Plans Required To Match EI Sickness Benefits?

Some employer short-term disability plans are registered under the federal EI Premium Reduction Program.

To meet the program’s requirements, a qualifying plan must provide weekly benefits at least equal to what the employee would receive under EI.

That does not mean every private STD plan in Canada uses the EI formula.

For a deeper comparison of the programs, visit our guide to short-term disability vs. EI sickness benefits vs. long-term disability.

Short-Term Disability Payment Examples

The following examples show why the benefit formula and maximum payment must be considered together.

Example 1: Percentage Of Weekly Earnings

An employee earns $1,000 per week.

The plan pays 60% of eligible weekly earnings.

$1,000 × 60% = $600 gross weekly STD benefit

If no lower cap or other adjustment applies, the gross benefit would be $600 per week.

Example 2: The Maximum Benefit Reduces The Payment

An employee earns $2,000 per week.

The plan pays 70% of eligible weekly earnings, up to a maximum of $1,000 per week.

The percentage calculation is:

$2,000 × 70% = $1,400

However, the plan maximum is $1,000.

The gross weekly STD benefit would therefore be $1,000.

Example 3: The Gross Benefit Is Not The Same As Take-Home Pay

An employee’s gross STD benefit is calculated at $800 per week.

The actual amount deposited may be different if:

  • the benefit is taxable
  • other deductions apply
  • another source of income reduces the benefit
  • the first payment covers only part of a benefit period

This is why the amount shown in the plan formula may not equal the amount that reaches your bank account.

Is There A Maximum Short-Term Disability Payment?

Many short-term disability plans have a maximum benefit.

The maximum may be stated as:

  • a weekly dollar amount
  • a monthly dollar amount
  • a percentage of earnings subject to a dollar cap

For example, a plan might say:

60% of eligible weekly earnings, to a maximum of $X per week.

The employee receives the lower of:

  • the amount produced by the percentage calculation
  • the maximum benefit in the plan

Who Is Most Affected By A Benefit Maximum?

A maximum payment is more likely to affect higher-income employees.

A person may see a plan advertised as replacing a certain percentage of salary but receive a much smaller actual percentage because their calculated benefit exceeds the cap.

For example:

  • the plan promises 60% of earnings
  • the employee’s salary would produce a $1,500 weekly benefit
  • the policy maximum is $1,000

The employee receives the plan maximum rather than the full 60% calculation.

Can The Maximum Benefit Change?

The maximum may change if:

  • the employer changes the benefits plan
  • the policy is renewed or amended
  • your insured earnings change
  • the plan uses a benefit level connected to another program or annual amount

The key question is which plan terms apply when your disability begins.

What Earnings Are Included In A Short-Term Disability Calculation?

Your normal take-home pay and your insured earnings are not necessarily the same thing.

The plan must define which earnings are used to calculate the benefit.

Possible sources of income can include:

  • base salary
  • regular hourly wages
  • commissions
  • bonuses
  • regular overtime
  • shift premiums or differentials
  • tips
  • other recurring compensation

A particular plan may include some of these earnings and exclude others.

Does Overtime Count?

It depends on the policy.

A plan may:

  • exclude overtime completely
  • include only regular scheduled overtime
  • use an average over a defined period

Do Bonuses Count?

Again, it depends on the plan’s definition of earnings.

A guaranteed recurring bonus may be treated differently from a discretionary or one-time bonus.

Do Commissions Count?

Commission employees should pay particularly close attention to the policy.

A plan may calculate insured earnings using:

  • base salary only
  • base salary plus eligible commissions
  • an average of past commission earnings
  • another formula
⚠️ If a large portion of your compensation comes from commissions, bonuses, overtime or shift premiums, do not assume that all of it is insured under your STD plan.

Do You Get Full Pay On Short-Term Disability?

Usually, an insurance-based short-term disability plan replaces only part of your normal income.

However, there are situations where an employee may receive income closer to full pay.

This can happen when:

  • the employer provides paid sick leave before STD begins
  • the employer tops up disability benefits
  • a workplace plan provides a higher replacement percentage
  • another permitted benefit supplements the payment

What Is A Short-Term Disability Top-Up?

A top-up is additional money provided to increase the employee’s income while off work.

For example, an employer may provide an additional payment on top of a disability benefit.

Whether a top-up exists depends on:

  • your employment terms
  • the workplace benefits plan
  • an employer policy
  • another applicable agreement

Is Paid Sick Leave The Same As Short-Term Disability?

No.

Paid sick leave is generally an employment benefit that continues some or all of your pay during an absence.

Short-term disability is an income-replacement benefit governed by the terms of the applicable plan.

Some employees use paid sick leave first and move to STD later.

Is Short-Term Disability Pay Taxable?

Tax treatment can make a major difference to how much money you actually receive.

In general, the answer often depends on who paid the insurance premiums.

  • If you paid the entire disability premium yourself, benefits may generally be tax-free.
  • If your employer paid all or part of the premium, benefits may generally be taxable.

However, the details of your plan and how premiums were paid matter.

Taxes are also not the only possible deduction. Depending on the structure of the plan, other payroll deductions may sometimes apply.

For a complete explanation, read our dedicated guide to whether short-term disability is taxable in Canada.

💡 A lower tax-free benefit can sometimes produce take-home income closer to a higher taxable benefit. Compare net income—not only the percentage shown in the policy.

Gross Benefit vs. Net Benefit

Amount Meaning
Gross STD benefit The benefit amount before applicable taxes, deductions or adjustments
Net STD benefit The amount you actually receive after applicable deductions and adjustments

When estimating your finances, use the amount you expect to receive after any applicable deductions.

How Often Are Short-Term Disability Benefits Paid?

The payment schedule depends on the plan and the organization paying the benefits.

Payments may be made:

  • weekly
  • every two weeks
  • semi-monthly
  • monthly
  • on another schedule

Who Pays Short-Term Disability Benefits?

Depending on the plan, payment may come from:

  • the insurance company
  • your employer
  • a plan administrator
  • another organization responsible for the benefit

Why Is The First STD Payment Different?

Your first payment may be different because of:

  • the waiting or elimination period
  • the date your disability began
  • the date the claim was approved
  • a partial payment period
  • retroactive payments
  • applicable deductions

If you are unsure what dates a payment covers, ask for a written breakdown.

Can Other Income Reduce Your Short-Term Disability Benefits?

Possibly.

Some insurance plans reduce benefits when you receive certain other income. This is often called an offset or deduction.

Depending on the plan, other income that could affect benefits may include:

  • other disability benefits
  • workers’ compensation benefits
  • income earned while working during the claim
  • another source listed in the policy

Not every source of income is automatically deductible.

The insurer should be able to identify the policy wording that allows it to reduce the benefit.

Can You Get EI And Short-Term Disability At The Same Time?

Short-term disability and EI sickness benefits are separate programs.

If you have access to an employer STD plan, it may need to be used before EI sickness benefits.

You should not assume that you can simply collect the full amount of both benefits for the same period.

Read our full guide to STD vs. EI sickness benefits vs. LTD.

Can Working While On STD Reduce Your Benefits?

Yes, it may.

If you earn income while receiving STD, the plan may:

  • reduce the disability payment
  • pay a partial benefit
  • apply a rehabilitation or return-to-work formula
  • stop the benefit if you no longer meet the definition of disability

Check the policy before starting paid work during a claim.

How Is STD Pay Calculated For Variable Income, Part-Time And Commission Workers?

Hourly Workers

A plan may calculate benefits using:

  • regular scheduled weekly hours
  • average hours over a defined period
  • insured earnings reported by the employer

The treatment of irregular overtime may be different.

Part-Time Workers

Part-time employees can receive STD benefits if they are covered by the plan and meet its eligibility requirements.

Their benefit will normally be calculated using the earnings covered by the policy.

Commission Employees

Commission-based income can create more complicated calculations.

Review:

  • whether commissions are insured
  • the averaging period used
  • whether only base salary is covered
  • how irregular payments are treated

Employees With Changing Hours

The plan may use an average or another defined period when weekly hours change regularly.

If your employer provided the wrong earnings information, ask the insurer what information it used and request a correction where appropriate.

Does Your Medical Condition Affect How Much Short-Term Disability Pays?

Usually, the benefit formula—not the diagnosis—determines the amount of the payment.

For example, the same plan formula may apply to claims involving:

  • a physical injury
  • surgery
  • depression or anxiety
  • PTSD
  • insomnia
  • pregnancy-related medical complications
  • another disabling condition

The condition can affect whether you qualify and how long benefits continue, but it does not normally create a separate payment percentage unless the policy specifically says otherwise.

Short-Term Disability Pay For Mental Health Claims

Mental health claims are generally calculated using the same benefit formula that applies to other covered disabilities.

Learn more about short-term disability for mental health conditions.

Short-Term Disability Pay During Pregnancy

Pregnancy-related STD claims are also generally subject to the benefit formula and maximum in the plan.

The more complicated issue may be how STD interacts with maternity or parental benefits.

Read our guide to short-term disability for pregnancy in Canada.

Short-Term Disability Pay For Insomnia

A claim involving insomnia generally uses the same payment formula as another covered STD claim.

Learn more about short-term disability for insomnia in Canada.

Do Short-Term Disability Payments Vary By Province Or Insurance Company?

The benefit amount is generally determined by the plan rather than one province-wide payment rate.

For province-specific information about STD coverage and related employment rights, visit:

Does The Insurer Set The Payment Amount?

The insurer applies the terms of the plan.

Two employers can use the same insurance company but provide different:

  • benefit percentages
  • maximum payments
  • waiting periods
  • definitions of earnings
  • benefit durations

For insurer-specific information, visit:

The exact plan provided by your employer is more important than the insurer’s name alone.

What If Your Short-Term Disability Payment Is Wrong Or Stops?

If your payment is lower than expected, start by asking for a written breakdown of the calculation.

Check:

  • the earnings amount used
  • the benefit percentage
  • the maximum benefit
  • the payment dates
  • taxes and other deductions
  • any offsets for other income
  • whether your employer reported the correct salary

What If The Wrong Salary Was Used?

Ask:

  • what earnings figure was used
  • who provided it
  • what policy wording defines insured earnings
  • what date or averaging period was used

Provide supporting documents if the calculation was based on incorrect information.

What If The Insurer Stops Paying Completely?

A complete benefit cut-off is different from a calculation dispute.

The insurer may say that:

  • you can return to work
  • the medical evidence no longer supports disability
  • required information was not provided
  • you no longer meet another policy requirement

If benefits are denied or cut off, read our guide to short-term disability denials in Canada.

Also consider how much time remains in your plan. Our guide explains how long short-term disability lasts in Canada.

What If STD Is Ending And You Still Cannot Work?

You may need to consider:

  • long-term disability benefits
  • EI sickness benefits
  • another source of income support
  • a medically appropriate return-to-work plan

Read our guide to what happens when short-term disability ends.

If your claim has become disputed, a short-term disability lawyer can explain your options.

Frequently Asked Questions

How much does short-term disability pay in Canada?

There is no standard Canada-wide amount. Most plans replace a percentage of your eligible pre-disability earnings, subject to the benefit formula and any maximum payment in the plan.

What percentage of your salary do you get on short-term disability?

The percentage depends on your plan. Check your benefits booklet or insurance policy for the exact benefit formula.

How is short-term disability pay calculated?

A basic calculation multiplies your eligible pre-disability earnings by the benefit percentage and then applies any maximum benefit, offset, tax or other adjustment required by the plan.

Do you get paid while on short-term disability?

Yes, if your claim is approved and you meet the plan requirements. STD replaces part of the employment income lost because you are unable to work.

Do you get full pay on short-term disability?

Usually not under an insurance-based plan. STD commonly replaces only part of normal earnings, although paid sick leave, employer top-ups or another workplace benefit may increase your income.

Is there a maximum short-term disability payment?

Many plans have a weekly or monthly maximum. If the percentage calculation exceeds the cap, the plan generally pays the maximum amount instead.

Is short-term disability based on gross or net income?

Many plans start with a definition of eligible pre-disability earnings. Whether that amount is based on gross salary or another defined earnings figure depends on the policy.

Does overtime count toward short-term disability?

It depends on the plan. Some plans exclude overtime, while others may include regular overtime or use an average.

Do commissions count toward STD pay?

They may. Review the policy’s definition of eligible or insured earnings to determine whether commissions are included and how they are calculated.

Are short-term disability payments taxable?

Tax treatment often depends on who paid the disability insurance premiums and how the plan is structured. Read our full guide to whether short-term disability is taxable in Canada.

Why is my STD payment lower than expected?

Possible reasons include a maximum benefit, excluded earnings, taxes, other deductions, offsets for other income or incorrect earnings information.

Can you get STD and EI sickness benefits at the same time?

Do not assume you can receive the full amount of both for the same period. The programs are separate, and an employer STD plan may need to be used first.

How often are short-term disability benefits paid?

The payment schedule varies by plan. Benefits may be paid weekly, every two weeks, semi-monthly, monthly or on another schedule.

Does your diagnosis affect how much STD pays?

Usually, the plan’s benefit formula determines the payment amount rather than the diagnosis itself.

How long will short-term disability payments continue?

Benefits may continue while you meet the policy requirements and remain within the plan’s maximum benefit period. Read our guide to how long short-term disability lasts.

Short-Term Disability Underpaid, Denied Or Cut Off?

A disability benefit is only useful if the correct amount is paid and the payments continue while you remain eligible.

If your insurer has used the wrong earnings, reduced your benefit unexpectedly, stopped payments or denied your claim, understand the reason and your options before deciding what to do next.

Contact Samfiru Tumarkin LLP for a free, confidential consultation with a disability lawyer.

STD Pay Lower Than Expected?

An incorrect calculation, unexpected deduction or benefit cut-off can put your income at risk. Understand how your payment was calculated and what options may be available.

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