Canada’s $8844 Wage Protection in 2025, Are You Eligible After Job Loss?

When a company suddenly collapses, employees often lose more than just their job—they risk losing unpaid wages, vacation pay, and severance. That’s where the Wage Earner Protection Program (WEPP) steps in.

In 2025, the Canadian government has raised the maximum WEPP payout to $8,844.22, offering a vital financial lifeline for workers impacted by employer insolvency. This benefit helps cover income earned within six months before a bankruptcy or receivership and ensures workers aren’t left stranded during a tough transition.

Here’s everything you need to know to determine if you qualify, how much you can receive, and what you must do—within strict deadlines—to secure your benefits.

What Is WEPP? [Wage Earner Protection Program Canada]

The Wage Earner Protection Program (WEPP) is a federal government benefit designed to help employees who lose their jobs because their employer has:

• Declared bankruptcy
• Entered receivership
• Initiated a qualifying insolvency process

Instead of losing hard-earned wages, WEPP ensures eligible individuals can recover up to seven weeks’ worth of pay. For 2025, that means a potential maximum benefit of $8,844.22—an amount aligned with Employment Insurance’s maximum insurable earnings.

WEPP at a Glance: Key Figures for 2025

Aspect	Details (2025)
Maximum Payout	$8,844.22
Time Limit to Apply	56 days from job loss or insolvency
Eligible Payments	Wages, vacation pay, termination, severance (past 6 months)
Administered By	Service Canada (once TIF is submitted)
Taxable?	Yes – Reported on T4A slip
Deductions?	No 6.82% deduction since November 2021

Who Qualifies for WEPP? [WEPP eligibility criteria]

To be eligible for WEPP, you must meet all three of these conditions:

1. Employer Insolvency
   Your employer must have:

• Declared bankruptcy
• Entered receivership
• Or undergone another official insolvency proceeding

1. Timing of Employment End
   Your job must have ended within six months before the official insolvency date.
2. Owed Eligible Payments
   You must be owed wages, vacation pay, termination pay, or severance, all earned within the six-month window before insolvency.

Important: Certain individuals are excluded, including:

• Directors of the company
• Major shareholders
• Senior financial officers involved in decision-making

Step-by-Step: How to Apply for WEPP in 2025

Navigating WEPP isn’t just about meeting eligibility—it’s about following the correct process, in the right order, and on time.

Step 1: Trustee Files a TIF

The process begins when a licensed insolvency trustee or receiver files a Trustee Information Form (TIF) with Service Canada. This document:

• Confirms the employer’s insolvency
• Opens the door for employee claims

Without this form, you cannot proceed with your WEPP application.

Step 2: Submit a Proof of Claim

You must submit a Proof of Claim to the trustee, detailing:

• Unpaid wages or benefits
• The amount owed
• Documentation, such as pay stubs or employment contracts

This ensures that your claim is recorded officially and tied to the employer’s insolvency file.

Step 3: Apply for WEPP via Service Canada

Once Steps 1 and 2 are completed, you must:

• Apply for WEPP within 56 days of:
• Your last day of employment, or
• The date the employer was declared insolvent (whichever is later)

Applications can be submitted:

• Online via Service Canada’s portal
• Or in paper form (if preferred)

Missing this 56-day window means automatic disqualification, so it’s crucial to act quickly.

2025 Deadlines and Key Timing

Deadlines are strict and vary based on insolvency dates:

• If your company goes bankrupt on June 30, 2025, you must apply by August 25, 2025
• Employees of large firms may receive official letters or emails outlining custom deadlines

Set reminders and stay in close communication with your trustee or HR representative to ensure you don’t miss out.

Common Mistakes That Delay or Deny Claims

Missing the Deadline

The 56-day window is non-negotiable. Applications submitted even one day late will be denied.

Incomplete Forms

Incomplete or inaccurate paperwork, especially regarding owed amounts, can delay processing or lead to rejection.

Premature Application

Do not apply for WEPP before the TIF is filed. Early submission could result in processing errors or denial.

What Does WEPP Cover?

You can claim a wide range of unpaid employment-related compensation, including:

• Regular wages or salary
• Vacation pay
• Termination pay
• Severance pay

However, the program only covers these payments if they were:

• Earned in the six months before the employer declared insolvency
• Unpaid at the time of job loss

You cannot claim bonuses, commissions, or other performance-based earnings unless specifically outlined in your contract and proven within the six-month eligibility period.

Tax Implications and Deductions

WEPP payouts are considered taxable income. Here’s how it works:

• You’ll receive a T4A slip from Service Canada
• The amount must be reported on your income tax return
• You can request additional withholding if needed

Since November 2021, the 6.82% deduction previously applied to WEPP payments has been removed. That means eligible claimants now receive the full $8,844.22 maximum amount (if applicable).

Why WEPP Is Crucial for Workers

For employees impacted by sudden company closures, the WEPP can:

• Replace lost wages
• Provide immediate financial support
• Prevent debt accumulation during job searches

This federal safeguard helps protect Canadian workers from the financial ripple effects of insolvency, letting them focus on rebuilding rather than struggling through uncertainty.

Example Scenario: Olivia’s Story

Olivia, a retail manager in Halifax, lost her job when her company declared bankruptcy in April 2025. She was owed:

• $3,200 in unpaid wages
• $2,400 in vacation pay
• $3,000 in termination pay

Her total claim: $8,600, well under the WEPP cap of $8,844.22. After her trustee filed the TIF and Olivia submitted her Proof of Claim, she applied for WEPP online.

Within weeks, Olivia received her payment—helping her pay rent, clear credit card debt, and cover essential expenses while searching for new employment.

FAQs

Q1. How much can I get from WEPP?
Up to $8,844.22 in 2025. This is the total maximum across all eligible wage-related payments.

Q2. Is the WEPP payment taxable?
Yes. You’ll receive a T4A slip, and must report the payment as taxable income on your return.

Q3. Can I apply for WEPP if I was laid off for other reasons?
Only if your employer enters bankruptcy or receivership. Regular layoffs or closures without insolvency don’t qualify.