If your employer has gone bankrupt or into receivership, the Canadian government has a financial safety net designed just for you—the Wage Earner Protection Program (WEPP). In 2025, eligible workers can receive up to $8,844.22 in compensation, making it one of the most significant one-time federal payouts available this year.
Here’s a complete breakdown of how Canada’s $8,844 WEPP payout in 2025 works, who qualifies, how much you could get, and how to apply.
Table of Contents
What is the WEPP?
The Wage Earner Protection Program (WEPP) is a federal benefit that provides compensation to employees who lose wages and other entitlements when their employer becomes insolvent—either through bankruptcy or receivership.
It is managed by Employment and Social Development Canada (ESDC) and aims to provide fast, guaranteed payment to affected employees without requiring them to wait for the slow legal process of asset liquidation.
Canada’s $8,844 WEPP Payout in 2025 – What’s New?
In 2025, the maximum WEPP payment has increased to $8,844.22, based on the updated calculation of seven times the maximum weekly insurable earnings under the Employment Insurance Act.
This is the highest WEPP benefit amount ever offered, reflecting inflation and increases in average insurable earnings in Canada.
Canada Workers Benefit Advance Payments Confirmed for July 2025: Exact Dates, New Eligibility Rules
What Does the WEPP Cover?
Eligible unpaid amounts include:
- Regular wages or salary
- Commissions and compensation for services rendered
- Vacation pay
- Severance pay
- Termination pay
These amounts must have been earned within the six-month period prior to the employer’s bankruptcy or receivership.
9 CRA Benefit Payments Coming in July 2025: Full Details Inside
Who is Eligible?
You may qualify for the WEPP in 2025 if:
- Your former employer is bankrupt or in receivership under federal insolvency legislation.
- You lost your job as a result of the employer’s insolvency.
- You are owed wages or other eligible compensation that you earned during the six months prior to the bankruptcy or receivership.
- You file a Proof of Claim with the trustee or receiver handling the employer’s insolvency.
- You apply for WEPP within 56 days of either:
- The date of bankruptcy/receivership, or
- The date you stopped working, whichever is later.
Who is Not Eligible?
You generally won’t qualify for the WEPP if you were:
- A company director during the eligibility period.
- Related to the employer and not dealing at arm’s length.
- In a position to influence payment decisions (such as financial managers or executives).
- An independent contractor instead of a formal employee.
How is the Payment Calculated?
- The maximum payment in 2025 is $8,844.22.
- This amount is calculated as 7 times the maximum weekly insurable earnings under EI.
- If you’re owed more than that, WEPP will cover only up to the cap.
- If you’ve received partial payments from a trustee or receiver, those amounts will be deducted from your WEPP entitlement.
Note: All WEPP payments are considered taxable income, and you will receive a T4A slip to include on your tax return.
How to Apply for WEPP
Follow these steps to receive your payout:
- Wait for the trustee or receiver to submit the necessary insolvency documents to Service Canada.
- File a Proof of Claim with the trustee or receiver.
- Submit your WEPP application to Service Canada within 56 days of your job loss or the bankruptcy date.
- Include any supporting documents, such as:
- ROE (Record of Employment)
- Pay stubs
- Letters from your employer or trustee
Once your complete application is submitted, Service Canada typically processes it within 35 calendar days.
What Happens After You Apply?
If approved, your WEPP payment will be:
- Deposited directly into your bank account, or
- Mailed as a cheque, based on your application preference.
If your application is denied, you may request a review of the decision within 30 days. If you’re still unsatisfied, further appeal options are available through the Canada Industrial Relations Board.
Summary – Canada’s $8,844 WEPP Payout in 2025
| Feature | Details |
|---|---|
| Maximum Payment | $8,844.22 |
| Eligibility Period | 6 months before employer insolvency |
| Application Deadline | 56 days after job loss or insolvency |
| Processing Time | Up to 35 days after complete application |
| Tax Status | Taxable (T4A issued) |
Final Thoughts
The $8,844 WEPP payout in 2025 is a major support mechanism for Canadians left jobless through no fault of their own. If your employer has declared bankruptcy or gone into receivership, don’t wait to apply. With firm deadlines and valuable compensation on the table, this program could be the financial bridge you need.
If you meet the criteria and act promptly, you could receive the full WEPP benefit and protect your income during one of life’s more uncertain moments.