Canada’s $8,844 WEPP Payment in 2025 – Know If You Qualify & How to Claim It

When your employer suddenly goes bankrupt, it can feel like the rug’s been pulled from under your feet. Bills don’t stop just because your paycheck does.

That’s where Canada’s Wage Earner Protection Program (WEPP) comes in — offering up to $8,844 in 2025 to help workers who are owed unpaid wages, severance, or vacation pay.

Whether you’re navigating a tough layoff or trying to help someone else through it, here’s everything you need to know about this financial lifeline.

Overview

WEPP is a federal program that steps in when employers can’t meet their payroll because they’ve gone bankrupt or into receivership. The 2025 maximum payout is $8,844 — equivalent to seven weeks of maximum insurable earnings under the Employment Insurance (EI) Act.

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It’s designed to provide quick relief for workers who are suddenly left without income due to their employer’s financial collapse.

Think of WEPP as a financial airbag — it won’t solve everything, but it’ll soften the blow.

Here’s a quick table for reference:

Eligibility

Before jumping into the application, make sure you tick all the boxes. The rules are pretty clear — but miss one, and you’re out.

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Employer Status

Your employer must be officially bankrupt or in receivership. That means a licensed insolvency trustee or receiver must be managing their finances.

What You’re Owed

WEPP covers unpaid wages, vacation pay, termination pay, and severance — but only if they were earned in the six months before the insolvency.

Employment Timing

You’re eligible if your job ended within the six months leading up to the bankruptcy or receivership. Even if you were let go just before the official filing, you still might qualify.

Excluded Groups

Some people are out of luck here:

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• Company directors or officers
• Shareholders with major control
• Managers who handled financial decisions

Required Forms

A Trustee Information Form (TIF) must be submitted to Service Canada by the trustee. This is a critical part of the process — without it, your application won’t even get off the ground.

Application

So how do you actually get the money?

Trustee Files TIF

First, the trustee or receiver will submit the TIF to Service Canada. This includes a list of affected employees and what they’re owed.

Submit Proof of Claim

You’ll need to send a Proof of Claim to the trustee — this outlines what you’re owed in wages, severance, etc.

Apply to WEPP

You have 56 days from one of these key dates:

• Employer’s bankruptcy or receivership date
• The day your employment ended
• The day all employees were terminated

You can apply online through the Service Canada website or request a paper form.

Mistakes

People make simple errors that cost them the benefit. Here’s how to avoid them:

• Missed deadlines: Set a calendar reminder for 56 days post-termination or bankruptcy.
• Incorrect claims: Double-check wage slips and employer records.
• Delaying your application: The sooner you apply, the faster you’ll receive payment.

Taxes

Yep — WEPP payments are taxable. You’ll get a T4A slip, and it must be reported on your income tax return.

While WEPP can’t replace every dollar lost, it offers meaningful support when workers are left in the lurch. The key is acting fast, being thorough, and knowing your rights. If you’re unsure, talk to a licensed insolvency trustee or employment lawyer.

FAQs