The Wage Earner Protection Program (WEPP) is a federal lifeline for employees left jobless when their employers go bankrupt or enter receivership.
In 2025, the maximum payout has been raised to $8,844, replacing up to seven weeks of maximum insurable Employment Insurance earnings.
Instead of losing crucial income, workers can now access this support to cover wages, vacation pay, termination pay, and severance—as long as it was earned within six months before insolvency.
WEPP At-a-Glance
Here’s a clear breakdown of the core WEPP details:
| Aspect | Details |
|---|---|
| Max Payout (2025) | $8,844.22 |
| Time Limit | Apply within 56 days of job loss or insolvency |
| Covered Payments | Wages, vacation, termination, severance (last 6 months) |
| Who Pays | Service Canada, after trustee files TIF |
| Taxable | Yes – you’ll receive a T4A slip |
| Deductions | No 6.82% reduction since Nov 2021 |
Who Qualifies for WEPP?
To check your eligibility, see if you meet the following:
- Employer Insolvency
Your employer must have declared bankruptcy, entered receivership, or undergone a qualifying insolvency proceeding. - Employment End Date
Your job must have ended within six months before the insolvency began. - Owed Payments
You must be owed wages, vacation, termination, or severance pay (limited to the six‑month window) . - Excluded Individuals
Company directors, major shareholders, or senior financial managers do not qualify.
How to Apply: Your Step‑by‑Step Roadmap
A. Trustee Does TIF Submission
A licensed insolvency trustee or court-appointed receiver must file a Trustee Information Form (TIF) with Service Canada. This is essential to trigger your eligibility for WEPP.
B. Employee Submits Proof of Claim
You must file a Proof of Claim with the trustee, specifying owed amounts. This ensures your claims are recorded.
C. Apply for WEPP via Service Canada
Once the TIF and Proof of Claim are filed, apply for WEPP within 56 days of ending employment or insolvency date. Applications can be online or on paper .
Missing this deadline means losing eligibility—set reminders!
2025 Application Deadlines: Key Dates
- For insolvencies in 2025, applications must be submitted within 56 days of employment termination or insolvency.
- In specific cases (e.g. large companies), employees may receive official notices with deadlines—such as apply by August 29, 2025 after a June insolvency.
Common Pitfalls to Avoid
- Wrong deadline: Missing the 56-day window invalidates eligibility.
- Flawed paperwork: Filling form incorrectly or weak documentation can delay payout.
- Overeager filing: Submitting before TIF processed could delay your application.
Taxes and Deductions
WEPP payouts are taxable. You’ll receive a T4A slip, and must report the amount on your income tax return. Since 6.82% has been removed from deductions, claimants now receive the full maximum amount.
Canada’s WEPP offers critical support for workers hit by sudden employer insolvency. If you’re owed recent wages, vacation, termination, or severance pay, don’t miss out on up to $8,844 in relief.
But you must act swiftly: ensure the trustee files the TIF, submit your proof of claim, and apply through Service Canada within the 56-day window.
Organized claims and timely applications mean you’ll get the financial help you deserve—just when you need it most.
Taking these steps can make all the difference. Stay proactive, stay informed—and claim what’s rightfully yours.
FAQs
How much can I get from WEPP?
Up to $8,844 in 2025—the total for all eligible wage-related payments.
What must my employer’s situation be?
They must be officially bankrupt, in receivership, or under a recognized federal insolvency process.
Is the money taxable?
Yes—Service Canada issues a T4A slip, and the amount must be included in your annual tax return.