Near-surface ice layers in the lower accumulation zone of Arctic glaciers and ice sheets may significantly affect deep meltwater percolation and runoff availability. This study presents a framework to assess three methods for characterizing near-surface ice layer permeability and its influence on runoff and mass balance on the Devon Ice Cap using field data. In the most effective method, ice layer permeability depends on temperature and thickness: they remain permeable above a threshold temperature (Tth = −0.15°C) and become impermeable once exceed a critical thickness (Himp = 1 m). Our modelling replicates ice layers that are typically thinner in the upper accumulation zone and thicker in the lower accumulation zone. Additionally, we simulate an observed increase in the number of ice layers in the upper accumulation zone after 2007. The evolution of thicker (>1 m) ice layers (or ice slab) in the lower accumulation zone reduces meltwater retention through refreezing, making surface mass balance (SMB) and runoff sensitive to climate changes. Simulated mean SMB ranged from −0.09 to 0.26 m w.e. a−1 from 1999 to 2022. Our model can be applied to simulate the long-term evolution of ice slab and project its impact on ice sheet runoff.