In Ontario, short-term disability benefits are not standardized. How much you receive, when benefits start, and how long they last all depend on the terms of your employer’s disability plan and how that plan is administered.
Some people discover too late that benefits are lower than expected, delayed by a waiting period, or cut off before they are medically able to return to work.
When income stops or drops unexpectedly, people need clear answers about what they will be paid, for how long, and what happens to their job while they recover. Uncertainty around short-term disability insurance claims can add pressure at exactly the wrong moment.
Short-Term Disability: Eligibility, Timelines, and Payment Amounts
Short-term disability benefits are governed by the terms of your employer’s disability plan, not by a single statutory standard. While the details vary, most plans follow a similar structure that ties eligibility, timing, and payment amounts together.
Eligibility is based on whether an illness or injury prevents you from performing the essential duties of your job. This assessment is made by the insurer administering the plan and relies on medical documentation. Approval does not depend on a diagnosis alone, but on how your condition affects your functional capacity at work. Claims are more likely to be scrutinized where symptoms fluctuate, recovery timelines are uncertain, or when the condition is difficult to document through diagnostic testing.
Timelines are twofold: the waiting period and the benefit period. Most short-term disability plans include a waiting period at the start of leave, often one to two weeks, during which benefits are not paid.
Once benefits begin, they are paid for a defined benefit period, commonly ranging between 15 or 26 weeks. When your benefit period ends, payments stop automatically. If you are still unable to return to work at that point, you can make a long-term disability insurance claim.
For short-term disability claims, payment amounts are calculated as a percentage of pre-disability earnings, ranging anywhere from 60 and up to 100 percent.
What counts as “earnings” depends on the plan. Base salary is usually included, but overtime, bonuses, or commission income may be excluded. Plans also differ on whether benefits are taxable and depends on who paid the insurance premium.
Frequently Asked Questions About Short-Term Disability Pay
How much do you get paid on short-term disability?
Short-term disability benefits replace a portion of an employee’s income rather than providing full wages. The most common range is between 60 and 70 percent of your pre-disability earnings, although the exact amount depends on the specific disability plan. Some plans cap payments at a maximum amount, meaning higher earners may see a more significant drop in income than expected.
Unlike statutory entitlements under employment standards legislation, short-term disability pay is not fixed by law. It is governed by the terms of your short term disability insurance policy, usually administered by an insurance company on your employer’s behalf. This is why two employees working for different companies can receive very different disability benefits, even if their medical circumstances are similar.
What is the maximum pay for STD benefits?
Many short-term disability plans include a maximum weekly or monthly benefit. Even if a plan replaces a percentage of income, that percentage may only apply up to a set dollar limit. This is especially important for higher earners to understand.
Tax treatment also matters. If the employer pays the disability premium, benefits are usually taxable. If the employee pays the premium, benefits may be tax-free. That distinction can significantly affect take-home pay and should be factored into any financial planning during disability leave.
Can you collect EI while on short-term disability?
As a general rule, you cannot receive Employment Insurance (EI) sickness benefits at the same time as short-term disability benefits. EI sickness benefits are meant for people who do not have access to short-term disability coverage or paid sick leave through their employer. If you are receiving benefits under a workplace disability plan, EI will usually not apply during that same period.
EI may become relevant if short-term disability benefits are denied, delayed, or end before you are medically able to return to work. The federal government explains how private disability insurance and EI interact in its guidance on disability insurance, which can be helpful when you are trying to understand where one benefit ends and another may begin. Knowing this distinction early can help you avoid income gaps.
Is short-term disability pay required by law in Ontario?
No. Short-term disability pay is not legally required under Ontario law. The Employment Standards Act does not obligate employers to provide short-term disability benefits.
Once an employer does offer short-term disability coverage, they must administer it fairly and in accordance with the plan terms. Disputes arise when claims are denied, cut off early, or otherwise mishandled. These situations can leave employees feeling powerless, but they don’t have to be accepted at face value. Whitten & Lublin regularly helps employees challenge unfair benefit denials and explain their options when things don’t feel right.
Can my employer terminate me while I’m on short-term disability in Ontario?
Being on short-term disability does not automatically protect you from termination, but it does trigger important legal protections. In Ontario, employers cannot terminate or penalize employees because of a disability or because they are on a medically supported leave. Employers also have a duty to accommodate disability-related restrictions to the point of undue hardship.
If your benefits end and your employer pressures you to return before you’re medically able, or hints at termination, that can raise serious employment and human rights concerns. With the right advice, employees can push back, protect their position, and avoid being forced into decisions that undermine their health or rights.
What should I do if my short-term disability benefits end but I’m still not able to work?
This is one of the most stressful points for employees. If your short-term disability benefits end and you’re still medically unable to return to work, several paths may be available depending on your situation.
These can include applying for long-term disability benefits, exploring EI sickness benefits where applicable, or addressing your employer’s ongoing duty to accommodate.
This is also a point where legal guidance can make a meaningful difference. Benefit terminations often overlap with job protection, accommodation obligations, and disputes about fitness to work. Whitten & Lublin helps employees understand their position, take control of next steps, and avoid being pushed out when they still have enforceable rights.
When Short-Term Disability Turns Into an Employment Law Issue
Short-term disability issues often overlap with termination risk or disputes about accommodation and benefits continuation. When benefits are cut off and an employer suggests you must return to work or risk losing your job, what may have started as an insurance issue can become an employment law matter with serious consequences.
A brief conversation can help you understand where you stand. Whitten & Lublin is here to help you protect both you and your livelihood.You can contact our team or call 416-640-2667 to speak with Toronto employment lawyers who understand how disability benefits and employment rights intersect.
