Definitions and interpretation

1   (1) In this regulation:

"Act" means the Insurance (Vehicle) Act;

"determined employment" means an employment determined by the corporation under section 13 or 14;

"full-time basis", in respect of employment, means

(a) an insured is employed at one employment for not less than 28 hours, not including overtime hours, in each week of the year preceding the date of the accident, or

(b) an insured is employed at one employment

(i) for not less than 28 hours per week, not including overtime hours, and

(ii) for not less than 2 years with periods of work not less than 8 months in duration and with gaps between periods of work not more than 4 months;

"gross yearly employment income" or "GYEI", in relation to an insured, means an insured's gross income as determined under Part 4;

"industrial average wage" means the industrial aggregate average weekly earnings for all employees of British Columbia as published monthly by Statistics Canada or as determined by the corporation under subsection (2);

"maximum yearly insurable income" means the amount determined under section 2 (2) or (3), as applicable;

"part-time basis", in respect of employment, means an insured is employed for less than 28 hours per week, not including overtime hours;

"temporary basis", in respect of an insured who is a temporary earner, means the insured is employed but not on a part-time basis or full-time basis.

(2) The corporation must use the industrial aggregate average weekly earnings for all employees of British Columbia as published monthly by Statistics Canada, except where

(a) no such figure is published for a particular month, or

(b) after the coming into force of this provision, Statistics Canada uses a new method to determine the industrial aggregate average weekly earnings for all employees for British Columbia for a particular month and the new method results in a change of more than 1% when compared with the former method,

in which case the corporation must determine an amount that in its opinion represents the industrial aggregate average weekly earnings for all employees for British Columbia for that month and, under paragraph (b), for each month remaining in that year.

(3) The class of insureds who meet both of the following descriptions as of the date of the accident is excluded from the meaning of "non-earner" as defined in section 113 of the Act:

(a) the insured has not held employment in the 2 years immediately preceding the date of the accident;

(b) the corporation is not satisfied that the insured would have held employment in the future had the accident not occurred.

Entitlement amount and limits

2   (1) Subject to this regulation, the income replacement benefit to which an insured is entitled under Division 6 of Part 10 of the Act, is an amount equal to 90% of the insured's net income, determined on a yearly basis in accordance with this regulation.

(2) The maximum yearly insurable income for the period of May 1, 2021 to March 31, 2022 is $100 000.

(3) The amount referred to in subsection (2) for the fiscal year beginning on April 1, 2022 and each fiscal year after that is the result obtained by multiplying $100 000 by the ratio between

(a) the sum of the industrial average wage for each of the 12 months before October 1 of the year preceding the year for which the amount of the maximum yearly insurable earnings is calculated, and

(b) the same sum for each of the 12 months before October 1, 2020.

(4) For the purpose of subsection (3), the corporation must use the most recent data available from Statistics Canada on January 1 of the year for which the amount under subsection (3) is calculated.

(5) The amount determined under subsection (3), if it is not a multiple of $500, must be rounded to the next multiple of $500.

(6) Subject to section 147 of the Act and section 10 of this Part and subsection (7) of this section, the minimum income replacement benefit to which an insured who is a full-time earner or an insured for whom the corporation determines an employment under section 13 of this regulation is entitled is the amount to which the insured would be entitled if the insured's gross yearly employment income were calculated using the minimum wage under the Employment Standards Act and, except in the case of a part-time employment, the insured worked 40 hours per week for 52 weeks of the year.

(7) The minimum income replacement benefit to which an insured, other than a student or minor, who sustains a catastrophic injury is entitled is an amount determined on the basis of a gross yearly employment income determined on the basis of the industrial average wage.

(8) Despite anything else in this regulation, an income replacement benefit that is payable to an insured who has sustained a catastrophic injury is payable to the insured beginning on the eighth day after the accident.

(9) If, but for subsection (7), an insured would be entitled during the first 180 days after the accident to the caregiver benefit under section 152 of the Act and an income replacement benefit under section 133 (1) or 134 (1) (b) of the Act, the insured is entitled to the greater of

(a) the benefit determined under subsection (7) of this section, and

(b) the caregiver benefit plus the income replacement benefit under section 133 (1) or 134 (1) (b) of the Act,

but not to both.

[am. B.C. Reg. 117/2021, App. 5, s. 1.]

Alternate formula

3   (1) In this section, "other disability compensation" means other compensation within the meaning of section 122 of the Act, but only from the sources prescribed by section 18 (2) (c) or (3) of the Enhanced Accident Benefits Regulation.

(2) Despite section 2 (1) but subject to this regulation, an insured who is entitled to an income replacement benefit based on the formula in section 2 (1) is entitled to the greater of

(a) an income replacement benefit determined under this regulation other than this section, and

(b) an income replacement benefit determined under subsection (3) of this section

but not to both.

(3) The amount of the income replacement benefit referred to in subsection (2) (b) is the lesser of

(a) $740 per week, and

(b) an amount per week calculated as follows:

(4) An insured's gross earnings for the purposes of subsection (3) (b) may not be more than the maximum yearly insurable income.

Full-time earners

4   (1) The income replacement benefit to which a full-time earner is entitled under section 131 (1) (a) or (b) of the Act is to be determined on the basis of the following:

(a) the full-time earner's gross yearly employment income from the employment, if the full-time earner was a salaried worker at the time of the accident;

(b) the greater of the following, if the full-time earner was self-employed at the time of the accident:

(i) the gross yearly employment income for an employment of the same class of employment as set out in Table 1 in the Schedule;

(ii) the gross yearly employment income from the full-time earner's employment;

(c) the full-time earner's gross yearly employment income from all employments that the full-time earner is unable to continue because of the accident, if the full-time earner held more than one employment at the time of the accident.

(2) The income replacement benefit to which a full-time earner is entitled under section 131 (1) (c) of the Act is the amount of the benefit to which the full-time earner would have been paid under the Employment Insurance Act (Canada).

(3) If a full-time earner is entitled to a benefit referred to in subsection (2), the amount of that benefit must be included in the full-time earner's gross yearly employment income.

Temporary earners and part-time earners — first 180 days

5   (1) The income replacement benefit to which a temporary earner or a part-time earner is entitled under section 133 (1) (a) of the Act is, during the first 180 days after the accident, to be determined on the basis of the following:

(a) the gross yearly employment income that the temporary earner or part-time earner earned or would have earned from the employment, if the temporary earner or part-time earner holds or would have held employment as a salaried worker at the time of the accident;

(b) the greater of the following, if the temporary earner or part-time earner was self employed at the time of the accident:

(i) the gross yearly employment income for an employment of the same class of employment as set out in Table 1 in the Schedule;

(ii) the gross yearly employment income that the temporary earner or part-time earner earned or would have earned from the employment.

(c) if the temporary earner or part-time earner holds or would have held more than one employment at the time of the accident, the gross yearly employment income the temporary earner or part-time earner earned or would have earned from all employment that the temporary earner or part-time earner is unable to continue because of the accident.

(2) The income replacement benefit to which a temporary earner or part-time earner is entitled under section 133 (1) (b) of the Act, during the first 180 days after the accident, is the amount of the benefit to which the temporary earner or part-time earner would have been paid under the Employment Insurance Act (Canada).

(3) If a temporary earner or part-time earner is also entitled to a benefit referred to in subsection (2), the amount of that benefit must be included in the temporary earner's or part-time earner's gross yearly employment income.

Temporary earners and part-time earners — after 180 days

6   (1) For the purposes of section 133 (1) (a) of the Act, from the 181st day after the accident, the corporation must, under section 13 of this regulation, determine an employment for the temporary earner or part-time earner, and the temporary earner or part-time earner, if unable to hold the determined employment because of the bodily injury, is entitled to an income replacement benefit.

(2) If the temporary earner or part-time earner held more than one employment at the time of the accident, the corporation must determine only one employment for the insured under section 13.

(3) The minimum income replacement benefit to which a temporary earner or part-time earner is entitled from the 181st day after the accident is the amount the temporary earner or part-time earner received during the first 180 days after the accident.

(4) A person who, under section 152 (4) of the Act, elects to continue to receive a caregiver benefit is not entitled to continue to receive an income replacement benefit under this section.

Non-earners — first 180 days

7   (1) The income replacement benefit to which a non-earner is entitled under section 134 (1) (a) of the Act, during the first 180 days after the accident, is to be determined on the basis of the gross yearly employment income from the employment the non-earner would have held in the first 180 days after the accident if the accident had not occurred.

(2) The income replacement benefit to which a non-earner is entitled under section 134 (1) (b) of the Act, during the first 180 days after the accident, is the amount of the benefit to which the non-earner would have been paid under the Employment Insurance Act (Canada).

(3) If a non-earner referred to in subsection (1) was also entitled to a benefit referred to in subsection (2), the amount of that benefit must be included in the non-earner's gross yearly employment income.

Non-earners — after 180 days

8   (1) For the purposes of section 134 (1) (a) of the Act, from the 181st day after the accident, the corporation must, under section 13 of this regulation, determine an employment for the non-earner, and the non-earner, if unable to hold the determined employment because of the bodily injury, is entitled to an income replacement benefit.

(2) The minimum income replacement benefit to which a non-earner is entitled from the 181st day after the accident is the amount the non-earner received during the first 180 days after the accident.

(3) A person who, under section 152 (4) of the Act, elects to continue to receive a caregiver benefit is not entitled to continue to receive an income replacement benefit under this section.

Entitlement to income replacement benefits after relapse

9   (1) If an insured sustains a relapse of the bodily injury within 2 years

(a) after the end of the last period for which the insured received an income replacement benefit, other than an income replacement benefit under section 10 of this regulation or section 147 of the Act, or

(b) if the insured was not entitled to an income replacement benefit before the relapse, after the date of the accident,

the insured is entitled to an income replacement benefit from the date of the relapse as though the insured had been entitled to an income replacement benefit from the date of the accident to the date of the relapse.

(2) The insured is entitled to an income replacement benefit under subsection (1) calculated on the basis of the greater of

(a) the gross yearly employment income used by the corporation immediately before the end of the period referred to in subsection (1) (a), and

(b) the gross yearly employment income of the insured at the time of the relapse.

(3) An insured who sustains a relapse more than 2 years after an applicable time referred to in subsection (1) is entitled to an income replacement benefit determined as if the relapse were a second accident.

(4) Subsections (1) to (3) do not apply to a person who sustains a catastrophic injury.

(5) An insured who sustains a catastrophic injury and whose income replacement benefit is suspended because the insured holds

(a) the employment that the insured held at the time of the accident,

(b) other employment from which the insured earns a gross income that is equal to or greater than the gross yearly employment income that the insured earned from employment held at the time of the accident,

(c) an employment determined for the insured under section 13, or

(d) an employment from which the insured earns a gross yearly employment income that is equal to or greater than the gross income on the basis of which the insured's income replacement benefit is calculated

is entitled to an income replacement benefit beginning on the day the insured has a relapse of the bodily injury or on the day the insured's employment ceases, because of their bodily injury, whichever is later, and ending on the day

(e) the insured is entitled to a retirement income benefit under section 150 of the Act, or

(f) the insured dies.

(6) The corporation must calculate an income replacement benefit under subsection (5) on the basis of the greater of

(a) the income replacement benefit the insured received immediately prior to its suspension, indexed to the date of the relapse or the date the employment ceased, and

(b) the gross yearly employment income of the insured at the time the relapse occurred or the employment ceased.

(7) An insured who is receiving an income replacement benefit other than a benefit referred to in section 146 (2) or 147 of the Act or section 10 of this regulation and who becomes entitled to an income replacement benefit under this section, is entitled to whichever income replacement benefit is greater, but not both.

Income replacement benefit for reduced income from determined employment

10   (1) If an insured becomes able to hold employment determined for the insured under section 14, but because of the insured's bodily injury earns from the employment a gross yearly employment income that is less than the gross yearly employment income used by the corporation to calculate the income replacement benefit that the insured was receiving before the employment was determined, the insured is entitled, after the end of one year from the date the insured became able to hold the determined employment, to an income replacement benefit that is the lesser of the following:

(a) the difference between the income replacement benefit the insured was receiving before the employment was determined under section 14 and the net income from the determined employment as calculated under this regulation;

(b) the difference between the income replacement benefit the insured was receiving before the employment was determined under section 14 and the net income the insured earns from employment.

(2) Section 147 of the Act does not apply respecting an insured if subsection (1) of this section applies respecting the insured.

Events that end or suspend entitlement

11   (1) The following circumstances are prescribed for the purposes of section 146 (1) (c) of the Act for all insureds except those with a catastrophic injury:

(a) the insured is able to hold the employment referred to in section 132 of the Act;

(b) the insured is able to hold an employment determined for the insured under section 13 of this regulation;

(c) one year has elapsed from the date the insured is able to hold employment determined for the insured under section 14, 58 or 65 of this regulation;

(d) the insured holds an employment from which the gross yearly employment income is equal to or greater than the gross yearly employment income on which the insured's income replacement benefit is determined.

(2) The following circumstances are prescribed for the purposes of section 146 (1) (c) of the Act for insureds with a catastrophic injury:

(a) the insured holds the employment that the insured held at the time of the accident;

(b) the insured holds the employment referred to in section 132 of the Act;

(c) the insured holds an employment determined for the insured under section 13 of this regulation;

(d) the insured holds an employment from which the gross yearly employment income is equal to or greater than the gross yearly employment income on which the insured's income replacement benefit is determined.

(3) Despite section 146 (1) (a) of the Act and subsection (1) (a) and (b) of this section, a full-time earner, a part-time earner or a temporary earner, except those with a catastrophic injury, who lost the employment the insured held or would have held before receiving an income replacement benefit because of the accident, under section 146 (2) of the Act, is entitled to continue to receive the income replacement benefit from the date the insured regains the ability to hold the employment, for the following period:

(a) 30 days, if entitlement to an income replacement benefit lasted for at least 90 days and not more than 180 days;

(b) 90 days, if entitlement to an income replacement benefit lasted for more than 180 days but not more than one year;

(c) 180 days, if entitlement to an income replacement benefit lasted for more than one year but not more than 2 years;

(d) one year, if entitlement to an income replacement benefit lasted for more than 2 years.

(4) Despite subsection (3) and subject to subsection (5), a full-time earner, a part-time earner or a temporary earner, except those with a catastrophic injury, who regains the ability to hold the employment the insured held or would have held before receiving an income replacement benefit, is entitled to continue to receive an income replacement benefit calculated on the basis of the benefits the insured would have been paid under the Employment Insurance Act (Canada) if

(a) as a result of seasonal demands, that employment is no longer available, and

(b) the insured

(i) is not eligible for benefits under the Employment Insurance Act (Canada), and

(ii) continues to be available for employment.

(5) An insured is entitled to an income replacement benefit under subsection (4) until the earlier of the following:

(a) the date that the insured's benefits under the Employment Insurance Act (Canada) would have expired;

(b) the date that the insured obtains employment.

[am. B.C. Reg. 117/2021, App. 5, s. 2.]

Benefit reduction if person earns reduced income

12   The prescribed percentage for the purposes of section 147 of the Act is 75%.

Required determined employment

13   (1) In this section and in section 14, "normally available", in relation to employment, means

(a) employment that was being performed, was about to be performed, is being performed or is about to be performed by an insured,

(b) employment or a category of employment that is the subject of an advertisement for employment, or

(c) employment or a category of employment that exists and is likely to continue as an employment or category of employment within the foreseeable future.

(2) If the corporation is required under these regulations to determine an employment for an insured, the corporation must consider

(a) Parts 4, 5, 7 and 8,

(b) the education, training, work experience and physical and intellectual abilities of the insured immediately before the accident,

(c) whether the insured could have held the determined employment, had the accident not occurred, on a full-time or part-time basis,

(d) the insured's work experience in the 5 years before the accident, and

(e) the insured's earnings in the 5 years before the accident.

(3) An employment determined by the corporation under subsection (2) must be

(a) employment that the insured could have held on a regular and full-time basis or, where that would not have been possible, on a part-time basis immediately before the accident, and

(b) normally available in the region in which the insured resides.

(4) If the insured did not hold employment on a full-time basis in the 2 years before the accident and the corporation is not satisfied that the insured would have, had the accident not occurred, held employment on a full-time basis in the future, the corporation must determine employment for the insured under this section on a part-time basis.

Authorized determined employment

14   (1) On or after the second anniversary date of an accident, the corporation may determine an employment for an insured who is able to work but who is unable because of the accident to hold the employment referred to in section 131 or 132 of the Act, or as determined under section 13 of this regulation.

(2) Subsection (1) does not apply to an insured who has sustained a catastrophic injury in the accident.

(3) In determining an employment under subsection (1), the corporation must consider the following:

(a) Parts 4, 5, 7 and 8;

(b) the education, training, work experience and physical and intellectual abilities of the insured at the time of the determination;

(c) any knowledge or skill acquired by the insured in a rehabilitation program approved under section 124 of the Act.

(4) An employment determined by the corporation under subsection (1) must be

(a) employment that the insured is able to hold on a regular and full-time basis or, where that is not possible, on a part time basis, and

(b) normally available in the region in which the insured resides.

(5) If the insured did not hold employment on a full-time basis in the 2 years before the accident and the corporation is not satisfied that the insured would have, had the accident not occurred, held employment on a full-time basis in the future, the corporation must determine employment for the insured under this section on a part-time basis.

Definitions

15   In this Part:

"employment", in respect of determined employment and self-employment, means an occupational classification set out in Table 1 in the Schedule;

"National Occupational Classification" and "NOC" means the National Occupational Classification established by Statistics Canada, as amended from time to time.

Maximum GYEI

16   An insured's gross yearly employment income may not, for the purposes of this Part, be more than the maximum yearly insurable income.

GYEI for salaried worker

17   Subject to this regulation, the gross yearly employment income of an insured who is a salaried worker at the time of the accident is the sum of the following amounts:

(a) in the case of a full-time earner, the salary or wages received or receivable for the pay period in which the accident occurred, divided by the number of weeks in the pay period and then multiplied by 52;

(b) in the case of a temporary earner or part-time earner, the salary or wages that are received or receivable with respect to employment that the temporary earner or part-time earner held or would have held, if the accident had not occurred, and that are the greater of

(i) the salary or wages received or receivable for the pay period in which the accident occurred, divided by the number of weeks in the pay period and then multiplied by 52, and

(ii) the salary or wages receivable during the first 180 days following the date of the accident divided by 180 and then multiplied by 365;

(c) in the case of a non-earner, the salary or wages from an employment that the non-earner would have held, if the accident had not occurred, during the first 180 days following the date of the accident divided by the number of days the employment would have been held, and then multiplied by 365;

(d) in all cases, any of the following benefits, to the extent that the benefit is not received as a result of the accident:

(i) a bonus received or earned in the 52 weeks before the date of the accident,

(ii) tips, in the amount that is the greater of the amount reported in the insured's personal income tax return for the calendar year before the year in which the accident occurred, and the amount reported in the insured's personal income tax return for the calendar year in which the accident occurred,

(iii) remuneration for overtime hours that is not included in paragraph (a) and that is received or earned in the 52 weeks before the date of the accident,

(iv) the cash value from a profit-sharing plan allocation received or earned in the 52 weeks before the date of accident,

(v) the value of the personal use of a motor vehicle provided by an employer at the time of the accident, in the amount reported in the insured's personal income tax return for the calendar year before the year in which the accident occurred or, where no such amount was reported, in an amount calculated under section 6 (1) (a) of the Income Tax Act (Canada) as an annualized benefit,

(vi) the value of the employer's contribution to the insured's pension plan, if lost because of the accident,

(vii) the cash value of any other benefit that the insured received, or was entitled to receive, in the 52 weeks before the date of the accident, and

(viii) the commissions that the insured had earned, or to which the insured was entitled,

(A) in the 52 weeks before the date of the accident,

(B) in the calendar year before the date of the accident, or

(C) in the three calendar years before the date of the accident, divided by 3,

whichever amount is the greatest.

GYEI for self-employment or a Canadian-controlled private corporation

18   (1) In this section:

"business income" means the income derived from self-employment or a Canadian-controlled private corporation, by way of proprietorship, partnership interest, or significant-influence shareholder interest, less any expense that relates to the income and is allowed under the Income Tax Act and the Income Tax Act (Canada) but not including the following:

(a) any capital cost allowance or allowance on eligible capital property;

(b) any capital gain or loss;

(c) any loss deductible under section 111 of the Income Tax Act (Canada);

"Canadian-controlled private corporation" means a Canadian-controlled private corporation as defined in section 125 (7) of the Income Tax Act (Canada);

"significant-influence shareholder" means a shareholder in a Canadian-controlled private corporation who

(a) holds 20% or more of the voting rights in the Canadian-controlled private corporation, and

(b) can demonstrate an active, authoritative influence over the day-to-day financial and administrative operations of the Canadian-controlled private corporation.

(2) Subject to sections 20 and 21, an insured's gross yearly employment income derived from self-employment that was carried on at the time of the accident is,

(a) if section 4 (1) (b) (i) or section 5 (1) (b) (i) apply, an amount determined in accordance with Division 3 of Part 8, and

(b) if section 4 (1) (b) (ii) or section 5 (1) (b) (ii) apply, the greatest amount of business income that the insured received or to which the insured was entitled within the following periods:

(i) for the 52 weeks before the date of the accident;

(ii) for the 52 weeks before the fiscal year end immediately preceding the date of the accident;

(iii) if the insured has operated the business for not less than two fiscal years before the date of the accident, for the 104 weeks before the fiscal year end immediately preceding the date of the accident, divided by 2;

(iv) if the insured has operated the business for not less than three fiscal years before the date of the accident, for the 156 weeks before the fiscal year end immediately preceding the date of the accident, divided by 3;

(v) the business income derived by a significant-influence shareholder in a Canadian-controlled private corporation that was declared for income tax purposes in the calendar year prior to the accident.

[am. B.C. Reg. 117/2021, App. 5, s. 3.]

GYEI for full-time earner, special circumstances

19   The gross yearly employment income of a full-time earner referred to in section 132 of the Act is the amount determined under sections 22 to 24 of this regulation, without adjustment under Division 1 of Part 8.

GYEI for temporary earner or part-time earner — first 180 days

20   The gross yearly employment income of a temporary earner or part-time earner during the first 180 days after the accident is the amount determined under section 17 and 18.

GYEI for temporary earner or part-time earner — after 180 days

21   The gross yearly employment income for a temporary earner or part-time earner from the 181st day following the date of the accident is the greater of the amounts determined under

(a) section 20, or

(b) sections 22 to 24.

GYEI for insured holding employment corresponding to
determined employment for 5 years and at time of accident

22   The gross yearly employment income of an insured who, at the time of the accident, held employment corresponding to employment determined for the insured by the corporation and who, in the 5 calendar years before the date of the accident, held such employment, is the greatest gross yearly employment income earned by the insured from the employment in any of those calendar years as determined under sections 17 and 18, indexed under Division 2 of Part 8 and then adjusted under Division 1 of Part 8.

GYEI for insured holding employment corresponding to
determined employment for 5 years but not at time of accident

23   The gross yearly employment income of an insured who, at the time of the accident, did not hold the employment determined for the insured by the corporation but who, in the 5 calendar years before the date of the accident, held such employment, is the greatest gross yearly employment income earned by the insured from the employment in any of those calendar years as determined under sections 17 and 18, indexed under Division 2 of Part 8 and then adjusted under Division 1 of Part 8 to a maximum adjustment of 50%.

Insured who never held employment corresponding to determined employment

24   The gross yearly employment income of an insured who, at the time of the accident, did not hold employment corresponding to employment determined for the insured by the corporation and who, in the 5 calendar years before the date of the accident, never held such employment is the gross yearly employment income set out in Table 1 in the Schedule for the employment determined by the corporation and adjusted under Division 1 of Part 8 to a maximum adjustment of 50%.

Non-earner — after 180 days

25   The gross yearly employment income of a non-earner from the 181st day following the date of the accident is the greater of the amounts determined under sections 23 and 24.

Classes of employment

26   The classes of employment and the corresponding gross yearly employment incomes set out in Table 1 in the Schedule apply in respect to the following:

(a) section 4 (1) (b) (i);

(b) section 5 (1) (b) (i);

(c) section 13;

(d) section 14;

(e) section 24;

(f) section 54 (1) (b) (i);

(g) section 61 (1) (b) (i).

Part-time determined employment

27   Despite sections 20 to 26, if the corporation determines that an insured can hold or would have held only part-time employment, the gross yearly employment income of the insured is reduced as follows:

RGYEI = GYEI ×

AHW − N AHW

[am. B.C. Reg. 117/2021, App. 5, s. 4.]

Net income

28   (1) Subject to subsections (2) to (4), the net income of an insured is the gross yearly employment income of the insured, less the following:

(a) the income tax payable by the insured, as determined under section 30;

(b) the premiums payable by the insured in respect of employment insurance, as determined under section 32;

(c) the contributions payable by the insured, in respect of the Canada Pension Plan, as determined under section 33.

(2) The net income of an insured who is claiming a loss of employment insurance benefit is the gross yearly employment income of the insured less the income tax payable by the insured as determined under section 30.

(3) The corporation must make reductions under subsection (1) as the applicable enactments referred to in that subsection read on December 31 of the year preceding the year for which an insured's net income is determined for the purposes of this Part.

(4) For the purposes of determining the deductions under subsection (1), the corporation must take into account the number of dependants of the insured on the date of the accident.

Taxable income is gross yearly employment income less deductions

29   For the purpose of section 30, an insured's taxable income is the gross yearly employment income of the insured less the following:

(a) any amount allowable to the insured under section 60 (b), (c) and (c.2) of the Income Tax Act (Canada), in the calendar year before the year for which the taxable income is calculated;

(b) any amount of the gross yearly employment income that would have been exempt from the insured's income tax under section 81 (1) (a) of the Income Tax Act (Canada) as that section read at the time of the accident.

Income tax is tax on taxable income less credits

30   For the purposes of this regulation, the income tax payable by an insured is the tax payable on the taxable income of the insured calculated in accordance with the Income Tax Act and the Income Tax Act (Canada), and allowing only the following credits:

(a) the credit allowed under section 118.7 of the Income Tax Act (Canada), where "B" in the formula set out in that section is the total of

(i) the premiums payable for employment insurance, as determined under section 32 of this regulation, and

(ii) the contributions payable in respect of the Canada Pension Plan, as determined under section 33 of this regulation and as would be allowed as a credit;

(b) the credits allowed in section 118 (1) and (2) of the Income Tax Act (Canada), without any reduction in the credits in respect of the income of a dependant referred to in section 28 (4) of this regulation;

(c) any credit or deduction from tax allowed under the Income Tax Act, without any reduction in the credit or deduction in respect of the income of a dependant referred to in section 28 (4) of this regulation.

GYEI is pensionable and insurable earnings

31   For the purpose of sections 32 and 33, the gross yearly employment income of an insured is the insurable earnings of the insured for the purpose of the Employment Insurance Act (Canada) and the pensionable earnings of the insured for the purpose of the Canada Pension Plan.

Premiums payable under Employment Insurance Act (Canada)

32   For the purpose of this regulation, the premiums payable under the Employment Insurance Act (Canada) are the amounts payable by the insured as an employee's premium for the year under that Act in respect of the insured's insurable earnings, not exceeding the maximum amount payable by the insured for the year under that Act.

Contributions payable under Canada Pension Plan

33   For the purpose of this regulation, the contributions payable under the Canada Pension Plan are the amounts payable by the insured as an employee's contribution for the year under the Canada Pension Plan in respect of the insured's pensionable earnings, not exceeding the maximum amount payable by the insured for the year under the plan.

Entitlement

34   (1) The retirement income benefit to which an insured is entitled under section 150 of the Act is an amount that is 70% of the insured's net income as determined under subsection (2) of this section, less any pension income as determined under subsection (3).

(2) An insured's net income for the purposes of subsection (1) is net income calculated under Part 5 to determine the insured's income replacement benefit, as indexed under section 36 to the last day before the calculation of the insured's retirement income benefit and before the application of any reduction under section 147 of the Act or section 10 of this regulation.

(3) An insured's pension income for the purposes of subsection (1) is the annual total of

(a) any pension or supplement under the Old Age Security Act (Canada) or a similar payment made under an enactment of any other jurisdiction,

(b) any benefit under the Canada Pension Plan, the Québec Pension Plan or any similar benefit payable under an enactment of any other jurisdiction, except for any payment resulting from the death of the insured's spouse, and

(c) the amount by which the total of

(i) all pension income, as defined by section 118 (7) of the Income Tax Act (Canada), determined without reference to any election under section 60.03 of that Act, that is received or receivable by the insured, and

(ii) all payments out of or under a registered retirement savings plan, other than a payment included in paragraph (a) (ii) of the definition of "pension income" in section 118 (7) of the Income Tax Act (Canada), that are received or receivable by the insured and included in the insured's income for the purpose of that Act,

exceeds the income tax that would be payable by the insured on the amounts referred to in subparagraphs (i) and (ii) if

(iii) no election were made under section 60.03 of the Income Tax Act (Canada), and

(iv) the tax payable were determined in accordance with section 30 of this regulation as if the amounts were taxable income for the purpose of that section.

Payments of benefits

35   (1) The corporation must pay an income replacement benefit or retirement benefit to an insured once every 14 days.

(2) The corporation must not pay an income replacement benefit in respect of the first 7 days after the date of the accident, except for an income replacement benefit payable under section 9 (3).

(3) The corporation may pay an income replacement benefit in a single payment equivalent to the capital value of the income replacement benefit if

(a) the amount to be paid every 14 days is less than $150, or

(b) the person entitled to the income replacement benefit has not been a resident of British Columbia for at least 1 year.

Adjustments

36   (1) The corporation must, under section 37, adjust the amount of the gross yearly employment income used as the basis of calculating an income replacement benefit for an insured each year on the anniversary date of the accident.

(2) The corporation must, under section 37, adjust the amount of the gross yearly employment income fixed for an employment determined under section 13 for an insured each year on the anniversary of the day on which the gross yearly employment income was fixed.

(3) The corporation must, under section 37, adjust a retirement income benefit on July 1 of each year.

(4) Section 37 applies to amounts expressed in dollars in this regulation except for the following:

(a) the maximum yearly insurable income referred to in section 2 (2) of this regulation;

(b) the amount referred to in section 3 (2) (a) of this regulation.

CPI adjustment — 2022 and subsequent years

37   (1) In this section, "British Columbia consumer price index" means the annual average All-items Consumer Price Index for British Columbia, as published by Statistics Canada.

(2) For the fiscal year beginning on April 1, 2022, and for each fiscal year after that, every amount to which this section applies must be adjusted by multiplying

(a) the amount for the immediately preceding fiscal year, and

(b) the sum of

(i) 1, and

(ii) the annual percentage change in the British Columbia consumer price index, as determined under subsection (4) and rounded to the nearest 1/10 of a percentage point.

(3) Despite subsection (2) (b) (ii), if the annual percentage change as determined under subsection (4)

(a) is a negative number, the annual percentage change is rounded up to zero, and

(b) is greater than 6%, the annual percentage change is rounded down to 6%.

(4) The annual percentage change referred to in subsection (2) (b) (ii) must be determined using the following formula:

(5) An amount determined under subsection (2) must be rounded to the nearest dollar and an amount ending in .50 must be rounded up to the next dollar.

Definition

38   In this Division, "reference period" means a maximum of the 60 months immediately before the date of the accident.

Adjustments under sections 20 to 25

39   (1) Subject to subsections (2) and (5), an adjustment for the purposes of sections 20 to 25 is based on the insured's ratio of presence at work during the reference period, and is the greatest of the following:

(a) the number of months the insured held employment in the 12-month period preceding the date of the accident divided by 12;

(b) the number of months the insured held employment in the 60-month period preceding the date of the accident divided by 60;

(c) the sum of the number of months that the insured held employment in each consecutive 12 month period preceding the date of the accident in which the insured held employment, to a maximum of five such periods, divided by the product resulting from multiplying the number of such periods by 12.

(2) The divisors in subsection (1) (a) to (c) must be reduced by the number of months in those periods in which the insured was a minor or student or not capable of holding employment.

(3) For the purpose of calculating an insured's ratio of presence at work, a month in which a period of employment begins or ends is to be considered to be a complete month of presence at work.

(4) For the purposes of sections 20 to 25, the adjusted gross yearly employment income of an insured referred to in those sections is the greater of the following:

(a) the amount determined by the formula:

(b) the minimum wage established under the Employment Standards Act determined, except in the case of a part-time employment, on the basis of 40 hours of work per week.

(5) For the purposes of sections 20 to 25, the corporation must not make an adjustment when the insured, at the time of the accident, had been unemployed for less than 12 consecutive months or had held a temporary or part-time employment for less than 12 consecutive months, and held full-time employment for the balance of the period used as a divisor in subsection (1) (b) less 12.

Indexation for sections 22 and 23

40   For the purposes of indexing a gross yearly employment income under section 22 or 23, the indexation must be determined in accordance with the following formula:

Definition

41   In this Division, "Table 1" means Table 1 in the Schedule.

Determination of level of experience

42   (1) When using Table 1 as required by this regulation, the corporation must determine the level of experience that the insured has in the class of employment determined for the insured, as follows:

(a) "Level 1" means less than 36 months of experience;

(b) "Level 2" means 36 months or more but less than 120 months of experience;

(c) "Level 3" means 120 months or more of experience.

(2) For the purposes of calculating the number of months of experience under subsection (1), a month in which an employment begins or ends is to be considered to be a complete month of experience.

Indexing formula

43   (1) The corporation must, for the fiscal year beginning on April 1, 2022 and for each fiscal year after that, adjust the gross yearly employment income of each of the employments corresponding to the NOC code in column 1 in Table 1 having a 1-character code by an amount obtained by multiplying the gross yearly employment income by an indexing factor obtained as follows:

(2) The corporation must, for the fiscal year beginning on April 1, 2022 and for each fiscal year after that, adjust the gross yearly employment income of each of the employments corresponding to the NOC code in column 1 in Table 1 having a 2-character code by an amount obtained by multiplying the gross yearly employment income by an indexing factor obtained as follows:

(3) The index factor determined under subsection (2) applies to the employments corresponding to the NOC code in column 1 in Table 1 having a 3- or 4-character code where the first 2 characters are the same as in subsection (2).

(4) In a year in which Statistics Canada fails to publish a new Labour Force Survey for British Columbia, the corporation may revise and adjust the AWW levels set out in the table in accordance with any statistical index or other publication that provides information similar to, or comparable with, that provided by the Labour Force Survey.

If employment not listed in table

44   If an employment is not listed in Table 1, or where the table does not give an income for the employment, the corporation may determine an income for that employment using the National Occupational Classification and Table 1 as a guide.

Census data used to update income levels

45   On April 1 immediately following the publication of a new census by Statistics Canada, the corporation must revise and adjust the income levels set out in Table 1 to reflect the income levels set out in the new census.

Table 1

46   (1) In Table 1:

(a) an employment corresponds to an occupational classification designated by the code in the column headed "NOC CODE" of column 2 of the table;

(b) "n.e.c." means not elsewhere classified;

(c) the dollar figures are for full-time work for a full year, where full-time work means the average hours worked ("AHW") determined under Division 4 of this Part for the occupational classification to which the insured's employment belongs.

(2) An income level in the table falling below the minimum wage established under the Employment Standards Act must be adjusted up to the minimum wage established under that Act.

Definitions

47   (1) In this Division and in Table 2, "AHW" means the average full-time weekly hours worked set out in column 4 corresponding to the NOC Code in column 2 in Table 2.

(2) In this Division, "Table 2" means Table 2 in the Schedule.

(3) In Table 2, "n.e.c." means not elsewhere classified.

Updates of AHW

48   The corporation must, for the fiscal year beginning on April 1, 2022 and for each fiscal year after that, replace the AHW of each occupation in Table 2 by an AHW figure calculated as follows:

Employment or AHW not listed

49   If an employment is not listed in Table 1 in the Schedule or where Table 2 does not give an AHW for the occupation to which the determined employment belongs, the corporation may determine the average full-time weekly hours worked for that employment using the National Occupational Classification and the tables as a guide.

Labour force survey data unavailable

50   In any year in which Statistics Canada does not publish a new Labour Force Survey for British Columbia, the corporation may revise and adjust the AHW levels in accordance with any statistical index or other publication that provides information similar to, or comparable with, that provided by the Labour Force Survey.

Definitions

51   (1) In this Part:

"category 1 student" means a student in a program of study at a post-secondary educational institution for baccalaureate degree, other than a professional degree, including an applied bachelor's degree or a red seal trade program certificate, or equivalent from another jurisdiction;

"category 2 student" means a student in a program of study for a master's degree, doctoral degree or a professional degree, or equivalent from another jurisdiction;

"category 3 students" means a student who is neither a category 1 student nor a category 2 student;

"current studies", in relation to a student, means studies that are part of a program of studies at the secondary level or post-secondary level that, at the time of the accident, the student has admission to begin or continue;

"full-time basis", in relation to a student attending a secondary school or post-secondary educational institution, means the student

(a) attends, or is admitted to or is registered in, a secondary school or post-secondary educational institution,

(b) continues to meet the requirements of the secondary school or post-secondary educational institution,

(c) is a full-time student as determined by the secondary school or post secondary educational institution,

(d) if attending the secondary school or post-secondary educational institution, is doing so on a regular basis,

(e) has not abandoned the student's current studies, and

(f) has not been suspended or expelled from the secondary school or post-secondary educational institution;

"post-secondary educational institution" means

(a) an institution established or continued under any of the following:

(i) College and Institute Act;

(ii) Royal Roads University Act;

(iii) Thompson Rivers University Act;

(iv) University Act;

(v) Private Training Act;

(b) an institution authorized to deliver degree programs in British Columbia under the Degree Authorization Act;

(c) a theological institution established or continued under any of the following:

(i) An Act to Incorporate Northwest Baptist Theological College;

(ii) Canadian Chinese School of Theology Vancouver Act;

(iii) Millar College of the Bible Act;

(iv) An Act to Confer Power upon Vancouver Bible Institute to Grant Theological Degrees;

(v) Mennonite Brethren Biblical Seminary Act;

(vi) Canadian Pentecostal Seminary Act;

(vii) An Act to Incorporate Carey Hall;

(viii) Columbia Bible College Act;

(ix) Vancouver School of Theology Act;

(x) An Act Respecting Okanagan Bible College;

(xi) An Act Respecting Pacific Life Bible College;

(xii) An Act to Incorporate St. Andrew's Hall;

(xiii) Seventh-Day Adventist Church (British Columbia Conference) Act;

(xiv) An Act Respecting Trinity Western University;

(xv) an Act similar to any of the Acts referred to in subparagraphs (x) to (xiv);

(d) an institution outside of British Columbia that is a specified educational institution within the meaning of the Canada Student Loans Act;

(e) an institution that is controlled or operated by an Indigenous nation that offers a program of study that is similar to a program of study offered by any of the above institutions;

(f) an institution outside of Canada that offers a program of study that is similar to a program of study offered by any of the above institutions;

"professional degree" means any of the following degrees or an equivalent in another jurisdiction:

(a) Doctor of Medicine;

(b) Doctor of Medicine and Master of Surgery;

(c) Doctor of Chiropractic;

(d) Doctor of Dental Medicine;

(e) Doctor of Dental Surgery;

(f) Doctor of Veterinary Medicine;

(g) Doctor of Optometry;

(h) Doctor of Pharmacy;

(i) Juris Doctor, Bachelor of Laws, Bachelor of Civil Law;

"red seal trade" means a trade or occupation that has been designated by the Canadian Council of Directors of Apprenticeship for inclusion in the Interprovincial Standards Red Seal Program;

"secondary school" means an educational institution as defined in section 59 providing a grade 9 to 12 program of studies.

(2) For certainty, the following are not category 1 students:

(a) a student in a program that upon successful completion would receive an associate degree or an undergraduate certificate, diploma or other non-degree credential;

(b) a student who is a secondary school student registered as a youth apprentice with the Industry Training Authority or the other trades programs managed by the Industry Training Authority that are not red seal trades.

(3) For certainty, the following are not category 2 students:

(a) a student in a master's-level certificate program, a doctoral-level certificate or diploma program or any other non-degree credential program;

(b) a student who is enrolled in a program that is a prerequisite for admission to a professional degree program.

[am. B.C. Reg. 117/2021, App. 5, s. 5.]

Full-time basis

52   For the purpose of this Part, a student is considered to be attending a secondary school or post-secondary educational institution on a full-time basis from the day the student is admitted by the secondary school or educational institution as a full-time student in a program of that level until the day the student completes, abandons or is expelled from the student's current studies, or no longer meets the requirements of the secondary school or educational institution.

Loss-of-studies benefit

53   (1) The loss-of-studies benefit to which a student is entitled under section 136 of the Act is the greater of the following:

(a) an amount equal to the tuition fees paid for a course that is part of the student's current studies that the student is unable to begin or continue because of the student's bodily injury and for which the student is unable to obtain a refund or credit for the amount;

(b) a lump sum of

(i) $10 550 for each school year not completed at the secondary level until the specified date, or

(ii) $10 550 for each term not completed at the post-secondary level until the specified date, to a maximum of $21 100 per year.

(2) If a school year at the secondary level is divided into semesters or terms, a pro-rated amount of the benefit set out in subsection (1) is payable for each semester or term not completed, to a maximum of $10 550 for each school year not completed.

(3) The corporation must pay the benefit to the student at the end of the term or end of the school year the student does not complete.

Determination of income replacement benefit — students

54   (1) The income replacement benefit to which a student is entitled under section 137 (2) (a) of the Act must be determined under section 17 or 18 on the basis of the following:

(a) if at the time of the accident the student holds or would have held an employment as a salaried worker, the gross yearly employment income the student earned or would have earned from the employment;

(b) if at the time of the accident the student is or would have been self-employed, the greater of the following:

(i) the gross yearly employment income for an employment of the same class of employment as set out in Table 1 in the Schedule;

(ii) the gross yearly employment income that the student earned or would have earned from the employment;

(c) if at the time of the accident the student holds or would have held more than one employment, the gross yearly employment income the student earned or would have earned from all employment that student is unable to hold because of the accident.

(2) The income replacement benefit to which a student is entitled under section 137 (2) (b) of the Act is the amount of the benefit to which the student would have been paid under the Employment Insurance Act (Canada).

(3) If a student is entitled to a benefit referred to in subsection (2), the amount of that benefit must be included in the student's gross yearly employment income.

[am. B.C. Reg. 117/2021, App. 5, s. 6.]

Student unable to begin or continue studies

55   The benefit to which a student is entitled under section 138 of the Act must be determined on the basis of a gross yearly employment income that is

(a) for a category 1 student,

(i) during the first 2 years after the specified day, equal to a yearly average computed on the basis of the industrial average wage for each of the 12 months preceding July 1 of the year before the specified date, and

(ii) after the period referred to in subparagraph (i), the amount calculated under subparagraph (i) multiplied by 1.15,

(b) for a category 2 student, equal to a yearly average computed on the basis of the industrial average wage for each of the 12 months preceding July 1 of the year before the specified date multiplied by 1.5, and

(c) for a category 3 student, equal to a yearly average computed on the basis of the industrial average wage for each of the 12 months preceding July 1 of the year before the specified date.

Student able to begin or continue studies

56   (1) The benefit to which a student whose current studies end before the date that was scheduled for their completion at the time of the accident is entitled under section 139 of the Act is the following:

(a) until the specified date,

(i) $10 550 for each year not completed at the secondary level, and if a school year at the secondary level is divided into semesters or terms, a pro-rated amount is payable for each semester or terms not completed, to a maximum of $10 550 for each school year not completed, or

(ii) $10 550 for each term not completed at the post-secondary level, to a maximum of $21 100 per year;

(b) after the specified date, an income replacement benefit as determined on the basis of gross yearly employment income that is

(i) for a category 1 student,

(A) during the first 2 years after the specified day, equal to a yearly average computed on the basis of the industrial average wage for each of the 12 months preceding July 1 of the year before the specified date, and

(B) after the period referred to in clause (A), the amount calculated under clause (A) multiplied by 1.15,

(ii) for a category 2 student, equal to a yearly average computed on the basis of the industrial average wage for each of the 12 months preceding July 1 of the year before the specified date multiplied by 1.5, and

(iii) for a category 3 student, equal to a yearly average computed on the basis of the industrial average wage for each of the 12 months preceding July 1 of the year before the specified date.

(2) The benefit to which a student whose current studies end on or after the date that was scheduled for their completion at the time of the accident is entitled under section 139 of the Act is an income replacement benefit determined on the basis of gross yearly employment income that is determined as set out in subsection (1) (b) of this section.

Student not entitled to both

57   A student who is entitled to an income replacement benefit under section 137 of the Act and under section 138 or 139 of the Act is only entitled to whichever is the greater benefit, but not both.

New determination of employment for student after end of current studies

58   (1) The corporation may determine an employment, under section 14, for a student at any time from the scheduled date of the end of the student's current studies if the student is able to work but unable because of the accident to hold an employment from which the gross yearly employment income is equal to or greater than the gross yearly employment income used by the corporation to calculate an income replacement benefit under section 138 or 139 of the Act, if the student had been unable to hold employment because of the accident.

(2) If a student becomes able to hold employment determined for the insured under subsection (1), but because of the student's bodily injury earns from the employment a gross yearly employment income that is less than the gross yearly employment income used by the corporation to calculate the income replacement benefit that the student was receiving before the employment was determined, the student is entitled, after the end of one year from the date the student became able to hold the determined employment, to an income replacement benefit that is the lesser of the following:

(a) the difference between the income replacement benefit the student was receiving before the employment was determined under subsection (1) and the net income from the determined employment as calculated under this regulation;

(b) the difference between the income replacement benefit the student was receiving before the employment was determined under subsection (1) and the net income the student earns from employment.

(3) Section 147 of the Act does not apply respecting a student if subsection (2) of this section applies respecting the insured.

(4) This section does not apply to a student who has sustained a catastrophic injury.

Definition

59   For the purposes of Division 8 of Part 10 of the Act, "educational institution" means any of the following providing a kindergarten to grade 12 program of studies:

(a) a school under the School Act;

(b) a provincial school under the School Act;

(c) an independent school under the Independent School Act;

(d) an educational institution operated by the government of Canada;

(e) an educational institution controlled or operated by an Indigenous nation;

(f) a school or institution outside of British Columbia that offers a program of study that is similar to a program of study offered by any of those referred to in paragraphs (a) to (e);

(g) a home of a parent who has registered a child under section 13 of the School Act or with any institution referred to in paragraphs (a) to (f).

Loss-of-studies

60   (1) The loss-of-studies benefit to which a minor is entitled under section 141 of the Act is the following:

(a) $5 693 for each school year not completed from kindergarten to grade 8;

(b) $10 550 for each school year not completed from grades 9 to 12.

(2) A loss-of-studies benefit is payable until not later than the end of the school year in which the minor reaches 19 years of age.

(3) Benefits under this section must be paid at the end of the school year that the minor did not complete.

Determination of income replacement benefit — minors

61   (1) The income replacement benefit to which a minor is entitled under section 142 (1) (a) of the Act must be determined under section 17 or 18 on the basis of the following:

(a) if at the time of the accident the minor holds or would have held an employment as a salaried worker, the gross yearly employment income the minor earned or would have earned from the employment;

(b) if at the time of the accident the minor is or would have been self-employed, the greater of the following:

(i) the gross yearly employment income for an employment of the same class of employment as set out in Table 1 in the Schedule;

(ii) the gross yearly employment income that the minor earned or would have earned from the employment;

(c) if at the time of the accident the minor holds or would have held more than one employment, the gross yearly employment income the minor earned or would have earned from all employment that the minor is unable to hold because of the accident.

(2) The income replacement benefit to which a minor is entitled under section 142 (1) (b) of the Act is the amount of the benefit to which the minor would have been paid under the Employment Insurance Act (Canada).

(3) If a minor is entitled to a benefit referred to in subsection (2), the amount of that benefit must be included in the minor's gross yearly employment income.

[am. B.C. Reg. 117/2021, App. 5, s. 6.]

Benefit for minor unable to begin or continue studies

62   The income replacement benefit to which a minor is entitled under section 143 of the Act is based on a gross yearly employment income equal to a yearly average calculated on the basis of the industrial average wage for each of the 12 months preceding July 1 of the year before the end of the school year during which the minor reaches 19 years of age.

Benefit for minor able to begin or continue studies

63   (1) The benefit to which a minor whose studies end before July 1 of the year in which the minor reaches 19 years of age is entitled under section 144 of the Act is the following:

(a) until the date scheduled as the date of the end of the minor's studies, to

(i) $5 693 for each school year not completed from kindergarten to grade 8, and

(ii) $10 550 for each school year not completed from grades 9 to 12;

(b) after the date scheduled as the date of the end of the minor's studies, to the income replacement benefit provided for in subsection (2).

(2) A minor whose studies end on or after the scheduled date is entitled to an income replacement benefit calculated on the basis of a gross yearly employment income equal to a yearly average computed on the basis of the industrial average wage for each of the 12 months preceding July 1 of the school year in which the minor's studies end.

Minor not entitled to both

64   A minor who is entitled to an income replacement benefit under section 142 of the Act and under section 143 or 144 of the Act is only entitled to whichever is the greater benefit, but not both.

Determined employment

65   (1) The corporation may determine an employment, under section 14, for a minor at any time on or after July 1 of the year in which the minor reaches 19 years of age if the minor is able to work but unable because of the accident to hold an employment from which the gross yearly employment income is equal to or greater than the gross yearly employment income used by the corporation to calculate an income replacement benefit under section 143 or 144 of the Act, if the minor had been unable to hold employment because of the accident.

(2) If a minor becomes able to hold employment determined for the minor under subsection (1), but because of the minor's bodily injury earns from the employment a gross yearly employment income that is less than the gross yearly employment income used by the corporation to calculate the income replacement benefit that the minor was receiving before the employment was determined, the minor is entitled, after the end of one year from the date the minor became able to hold the determined employment to an income replacement benefit that is the lesser of the following:

(a) the difference between the income replacement benefit the minor was receiving before the employment was determined under subsection (1) and the net income from the determined employment as calculated under this regulation;

(b) the difference between the income replacement benefit the minor was receiving before the employment was determined under subsection (1) and the net income the minor earns from employment.

(3) Section 147 of the Act does not apply respecting a minor if subsection (2) of this section applies respecting the insured.

(4) This section does not apply to a minor who has sustained a catastrophic injury.