SOCIAL ASSISTANCE
AND
RELATED PROGRAMS

("SARP")

1994

(Archive copy for historical purposes only)

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INCOME

Salaries, Wages and Training Allowances

Newfoundland

In the determination of initial and continuing eligibility for Social Assistance, applicants or recipients are allowed a partial exemption on "allowable income", which includes:

i) net earnings of the applicant and his spouse from salary and wages, including income from self-employment;

ii) an amount received through provincial training allowances; and

iii) an amount received through federal training allowances for participants in projects under the federal-provincial agreement on the employability of social assistance recipients.    Regulation 2(b,g)

The exemption level allowed in each case depends on the reason assistance is being granted and whether the household comprises one or more beneficiaries; income exceeding the appropriate exemption is considered available for ongoing maintenance of the household.

Current exemption levels are the following:

a) in the case of an adult who has been granted social assistance for a reason other than unemployment (excluding disability), the first $30 plus 50% of all allowable income over $30 and up to $80 a month (maximum monthly exemption of $55);

b) in the case of a family of two or more persons granted social assistance for a reason other than unemployment , the first $30 plus 50% of all allowable income over $30 a month and up to $200 a month (maximum monthly exemption of $115);

c) in the case of an adult whose only claim to social assistance is unemployment , 50% of all allowable income up to $80 a month (maximum monthly exemption of $40);

d) in the case of a family of two or more persons whose only claim to social assistance is unemployment , 50% of all allowable income up to $200 a month (maximum monthly exemption of $100);

e) in the case of an adult whose claim to social assistance is disability , all income derived from salary and wages up to $95 a month; and

f) in the case of a family whose claim to social assistance is the disability of one or more persons, all income derived from salary and wages up to $190 a month.    Regulation 2(g)(ii), 2(e)(xii), 2(e)(xiii)

Net earnings are determined by deducting expenses from the gross earnings of the applicant and/or spouse as follows:

a) deductions for Unemployment Insurance contributions, Canada Pension Plan, union dues, income tax;

b) expenses incurred in earning the income, such as transportation costs (including the normal operating expenses of a motor vehicle to and from work);

c) purchase price or rental cost of equipment or clothing necessary to perform the work from which income is derived (excluding expenses pertaining to the fishery) such as uniforms, safety boots, helmets and goggles.  In the case of woodsmen, deductions may be made for instalment payments on power saws and for operating expenses;

d) additional expenses incurred while earning the income;

e) babysitting or daycare services up to $260 monthly if absolutely necessary for employment.    Policy 120.01

 

Income exceeding $175 monthly from rehabilitation training allowances (payable to clients participating in sheltered workshop programs such as the Work Oriented Rehabilitation Program, the Preparatory Rehabilitation Program and Work Activity) and all income from federal training allowances except those allowances payable under the federal-provincial agreement on the employability of social assistance recipients will be assessed as non-allowable, i.e., no exemption may be allowed on such income.    Regulation 2(g)(vii); Circular 61-86

 

 

Prince Edward Island

 

Since April 1, 1990, the monthly earnings exemption is equal to $50 for a single person or $100 for a family, plus 10% of the balance of net wages in both cases; this policy applies to an applicant or a beneficiary.    Regulation 12(a)

 

"Net wages" is equal to gross earnings (wages, salaries, commissions, tips and self-employment earnings) and the non-exempted portion of training allowances (see next paragraph) less UI, CPP, group medical and group life insurance premiums, income tax deductions, regular pension contributions  and any other deductions which are a condition of receiving the salary.    Regulation 12(1)(g) ; Policy 7(13-4-4)

 

Income against which the earnings exemption may be applied includes any federal or provincial manpower training allowance paid to an applicant, and any training allowance received from any other employer.  However, an exemption is made for the cost of room and board if the applicant or beneficiary is living away from his usual place of residence.    Regulation 12(1)(f)

 

Where an applicant or beneficiary is using his/her own vehicle to travel from home to work and back, a maximum of $25 per week may be deducted from net income as an allowable expense.   Provincial Contact

 

In cases where an applicant is declaring regular weekly income or expenses, the monthly total is calculated by multiplying the weekly amount by 4.3.    Policy 7(13-3-12)

 

A maximum exemption of $50 monthly may be allowed against income that is derived on an irregular basis and that is considered non-insurable under the Unemployment Insurance Act.    Regulation 12(1)(b)

 

In September 1990, a new "transition to employment" policy was implemented in order to reduce the immediate financial hardship that may be associated with commencing employment or employment-related training.  Income received from training or employment in the month during which the training program or employment commenced shall be deferred as income for the next ("transition") month.  The calculation of need for the transition month includes food, clothing, household and personal needs (or room and board) prorated to the date of the first pay cheque in that month, plus continuing items of special need (transportation, child care, etc.) prorated to the date of the first pay cheque in the month, plus the full amount of all shelter-related costs for the entire month.  All calculations of earned income shall include the earnings exemptions in such cases.  The normal budget deficit method is used for the months following the transition month.  This policy applies only to clients who are already in receipt of social assistance (and not to applicants).    Policy Section 7 (13-3-15)

 

 

Nova Scotia - Provincial

 

In the calculation of wages or earnings from employment, the Director shall

allow a monthly deduction from gross wages in the following amounts:

a) $100 for a single person

b) $200 for a person with dependants

c) in the case of a disabled person (single person or family head) who is participating in an approved education program, the first $275 of the monthly training allowance.

75% of the remaining (gross) wages is considered as income available to meet current needs.   Regulation 44(3); Policy 05-06-13

 

NOTE : The foregoing earnings exemption calculation applies only to cases in receipt of Family Benefits; in the case of any new application, the gross income from wages shall be considered at 100% ( no deductions or exemptions when calculating eligibility for assistance).    Regulation 23(2)

 

The Director may from time to time determine what constitutes net income, net profits, gross income, gross wages, or net wages; vocational training allowances are considered in the same manner as gross wages (since February 1988).    Regulation 44(6,9)

 

Section 42 of the Regulations allows the Director to include as a budgetary requirement the actual costs up to $200 per month incurred by a recipient in relation to his or her participation in employment, an educational program or a rehabilitation program approved by the Director; such costs include, but are not limited to, expenses for child care, transportation and special clothing.  A client may benefit from the earnings exemption on gross income (see above) or this provision, but not both.  In practice, the provision summarized in this paragraph applies in a limited number of situations, e.g., where a client participating in a training program is receiving a small training allowance or none at all.    Regulation 42, Provincial Contact

 

Where a recipient has worked or participated in a training program for at least 100 hours in the first four weeks following the commencement of employment or training, the gross wages or vocational training allowance earned during these four weeks shall not be considered in the calculation of the person's monthly Family Benefits payment.  This provision may be applied once in a twelve-month period.    Regulation 44(10,11) Eff. 10-88 (provision extended to training allowances 06-90)

 

Where an applicant or recipient is engaged in work which is seasonal or sporadic in nature, the Director may average gross earnings over a six-month period when calculating the applicant's or recipient's entitlement to Family Benefits.    Regulation 44(8)

 

The income of an applicant or recipient is deemed to include the income of the spouse or person cohabiting with the applicant or recipient.    Regulation 44(1)

 

 

Nova Scotia - Municipal

 

Under the Municipal Social Assistance Program, each municipality sets its own earnings exemption policies and procedures.  The Halifax Social Planning Department allows a monthly exemption on wages and salaries from full or part-time employment of $50 for a single person and $100 for a client with dependents, provided that there is indication of high motivation to work, and that the person continues to confirm active pursuit of full-time employment and to follow up with training opportunities and referrals; the amount on which the exemption may be applied is equal to gross earnings less routine payroll deductions such as income tax, pension plan and unemployment insurance contributions, union dues and medical insurance.    Policy 1.1.8; Procedure 1.2.1.2 - effective - 01-87

 

For persons participating in federal training courses, all allowable training expenses are to be included in the client's budget, and all income received is charged on the gross amount received.    Procedure 1.1.8.5 effective 01-87

 

 

 

 

 

 

 

New Brunswick

 

Net monthly unit earnings equal gross amount earned minus non-voluntary deductions (Income Tax, union dues, Blue Cross, UIC, CPP).  This amount is considered income. When determining eligibility for clients who work irregularly, the last pay cheque is considered income.    Policy page 50, Policy No. 1

 

Extra pay for vacations and long service on termination of a job is considered on the same basis as the last pay.  

 

In determining financial eligibility of an applicant or a recipient, the following amounts may be deducted from monthly income from part-time or full-time employment:

- $150 monthly for a unit consisting of one person;

- $200 monthly for a unit consisting of more than one person.    Regulation 7(2)(i)

 

NOTES :  1. Where a recipient has been assessed as having very high employment potential and as being highly likely to attain long term employment, the above amounts shall be increased as follows:

i) for a unit of one person, by an additional monthly amount of $250 for  a period of two months;

ii) for a unit of more than one person, by an additional monthly amount  of $200 for two months and $100 for the third month.   Regulation 86-922-Effective 22-11-86

2. Two-parent employable units are eligible for the wage exemption for up to six months with extensions according to an established provincial standard;

3. This exemption does not apply to training or educational allowances, nor to income from property rentals;

4. In the case of an applicant who is awaiting and eligible for unemployment insurance benefits, the above earnings exemption does not apply to wages from part-time or full-time employment.

Regulation 7(2)(i), 7(2.1)

 

 

Quebec

 

Since August 1989, the earnings exemption level for any household which is eligible for the Financial Support Program is set at $100 per month; for clients of the Work and Employment Incentives Program, this level varies in accordance with the client's availability or unavailability and his/her participation or non-participation in a measure to assist his/her entry or re-entry into the labour market.  Section 5.1 provides a summary of the principles underlying benefit levels and exemptions allowed against work income, while section 5.2 provides benefit scales and corresponding earning exemption levels for all client types.    Editorial Comment

 

 

Income from work includes employment income, net commissions or net income from self-employment from which are deducted:  income tax, Unemployment Insurance and health insurance premiums, contributions to the Quebec Pension Plan or compulsory retirement plan, union dues and work-related expenses at the lesser of $25 monthly or 6% of gross monthly income.    Regulation 53

 

For the purpose of calculating earnings exemptions ("Work Income Excluded" in section 5.2.5) for both Financial Support and WEIP clientele, amounts received as training allowances under the National Training Act and U.I. benefits received by a person participating in a training program covered under section 26 of the Unemployment Insurance Act are considered as income (i.e., exemptions may be applied to these types of income).    Regulation 7.1, 13.2 (eff. 09-92)

 

The following are not considered as income for benefit calculation purposes:

- an amount received under the Ministry of Health and Social Services home care services program;

- allowances received under the Young Volunteer Program;

- any amount received under the Work Income Supplement Act or Parental Wage Assistance Program (see section 6.3);

- amounts paid by the Minister to a beneficiary for availing himself of a measure provided for in section 23 of the Act (see section 2.6) or in the External Manpower Services program (specialized manpower services offered by non-profit agencies),    Regulation 52

- income earned in the previous period of at least three months (or, in the case of a self-employed worker, income attributed to such a period), insofar as that income ceases.

 

Income from babysitting in the beneficiary's home is considered as a financial resource after deducting 60% of gross income for expenses.    Regulation 58

 

 

Ontario - Provincial

 

Supports to Employment Program ("STEP")

 

In effect since October 1989, STEP is not a program in the true sense of the word, but rather a series of enhancements to Ontario's social assistance system (Family Benefits and General Welfare Assistance) which were designed to improve the financial situation of the clients of that system by means of employment income.

 

For the purpose of calculating earnings from work, income shall include the total amount paid to a client and a spouse included as a beneficiary in respect of gross monthly income from wages, salaries, casual earnings and amounts paid under a training program (other than the earnings of a dependent child) and the net monthly income from an interest in or operation of a business less :

i) the total amount of all deductions required by law or by the terms of employment for income tax, Canada Pension Plan, unemployment insurance, union dues and mandatory pension contributions;

ii) a basic earnings exemption equal to:

- $160 monthly for a single person;

- $185 monthly for a family with at least one disabled beneficiary;

- $120 monthly for other families; eff. 08-93

iii) 25% of all net earnings exceeding the basic earnings exemption;  

iv) the cost of child care expenses for employment or training purposes (see "Child Care Expenses" below). Regulation 13(2)(1)

 

NOTE : As of August 1992, the basic and supplementary earnings exemption provisions ("ii" and "iii" above) shall not be included in calculating income for the purpose of determining initial eligibility for an allowance nor the amount of the allowance to be paid for the first three months that an allowance is payable.  Certain exceptions apply to clients who, on the date of implementation of this policy, were (or had been) in receipt of an allowance under the Family Benefits Act or General Assistance under the General Welfare Assistance Act.  Where a former client reapplies for FBA within six months after leaving the program for employment, that person is immediately eligible for all deductions under STEP.  That person must receive assistance for three continuous months in order to qualify for another grace period. Regulation  13(8.1); Policy 0303-05

 

A disabled person (i.e., a person eligible for GAINS-D - see section 6.3) is allowed a deduction from income for disability-related work expenses necessary for employment, up to a maximum of the lesser of $140 per month or the actual amount of his or her income from work after all allowable deductions have been applied.  This provision does not apply to expenses that are not attributable to the person's disability, expenses that are subject to reimbursement or expenses that are the responsibility of the person's employer under section 16(1) of the Human Rights Code, 1981.   Regulation 13(2)(1)(v); Regulation 13 (2b)

 

Child Care Expenses

 

Since October 1, 1989 an applicant or recipient may deduct child care expenses, up to specified limits, from net earnings and training allowances before those earnings and allowances are used in calculating the amount of monthly assistance.  Those limits are the following:

- actual cost, if paid to a child care worker licensed under the Day Nurseries Act;

- actual cost up to $390 per month

- for each child less than six years of age

- for each child 6 to 12 years of age whose special circumstances require increased child care costs

- for each child over 13 years of age whose special circumstances necessitate child care

- actual cost up to $346 per month for each child 6 to 12 years of age.

 

Child care expenses may be used to offset income or a training allowance only where such expenses are necessary to permit a client to be employed or to participate in a training program and where the client's spouse, if any, is either also employed or participating in a training program or is otherwise unable to provide the child care.

 

Child care expenses are not deductible from income or training allowances where they are paid to a beneficiary in respect of whom the applicant or recipient receives a benefit or where they are reimbursable under any other program.    Regulation 13(2)(1), 13(11,12)

 

When income is derived from a Private Home Day Care Program , from babysitting or from the Foster Day Care Program operated by Children's Aid Societies, such income shall be charged against Family Benefits in the following manner:

a) "net revenue" is determined by reducing the gross monthly income by the greater of: - 40% of gross monthly income; OR - an amount for food and other expenses in accordance with specified rates plus any approved capital expenditures;

b) the regular earnings exemption is deducted from net revenue in accordance with "b" and "c" above;

c) any non-exempted income is considered as available income and charged against the recipient's allowance.    Policy 0303-06

 

In order to facilitate the transition from Family Benefits to self-support or to ease an otherwise serious financial hardship, the Director may authorize payment of a Family Benefits allowance for the month immediately following the month in which eligibility ceases.    Regulation 14(5); Policy 0402-04

 

Income received prior to January 1, 1994, from wages, salaries, casual earnings and amounts paid under a training program may be averaged over a period not exceeding six months for GAINS-D cases (see section 6.3) and not exceeding four months for all other FBA cases; where income is averaged over a number of months, deductions for income tax, CPP, UI, union dues and mandatory pension contributions are averaged over the same period.    Regulation 13(6, 7)

 

Effective January 1, 1994, income from earnings or training is no longer averaged.  Earned income received in a given month is used to generate the following month's assistance entitlement.  When the actual income for the previous month is reported, the entitlement is recalculated using actual income.   Policy 0303-04

 

 

Ontario - Municipal

 

Supports to Employment Program (STEP)

 

For the purpose of calculating earnings from work, income shall include the total amount payable in respect of gross monthly income from wages, salaries, casual earnings (other than the earnings of a dependent child) and amounts paid under a training program ( and net income from an interest in or operation of a business in the case of a single parent family or an unemployable applicant, recipient or spouse) less

i) the total amount of deductions required by law or by the terms of employment from wages, salaries, and amounts paid under a training program and casual earnings made in respect of income tax, Canada Pension Plan, unemployment insurance, union dues and mandatory pension contributions;

ii) a basic earnings exemption equal to $50 monthly for a single person, $120 for a single-parent family and $100 for a two-parent family;

iii) 25% of all net earnings exceeding the basic earnings exemption.

iv) the cost of child care expenses for employment or training purposes (see "Child Care Expenses" below); Regulation 15(2)(1) - exemption levels revised 08-93

 

NOTE : As of August 1992, the basic and supplementary earnings exemption provisions ("ii" and "iii" above) shall not be included in calculating income for the purpose of determining initial eligibility for General Assistance nor the amount of the allowance to be paid for the first three months that an allowance is payable.  Certain exceptions apply to clients who, on the date of implementation of this policy, were (or had been) in receipt of an allowance under the Family Benefits Act or General Assistance under the General Welfare Assistance Act.  Where a former client reapplies for GWA General Assistance within six months after leaving the program for employment, that person is immediately eligible for all deductions under STEP.  That person must receive assistance for three continuous months in order to qualify for another grace period.    Regulation  15(7.1-7.5)

 

Child Care Expenses

 

Since October 1, 1989, an applicant or recipient may deduct child care expenses up to specified limits, from net earnings and training allowances before those earnings are used in calculating the amount.  Those limits are the following:

- actual cost, if paid to a child care worker licensed under the Day Nurseries Act;

- actual cost up to $390 per month

- for each child less than 6 years of age

- for each child 6 to 12 years of age whose special circumstances require increased child care costs

- for each child over 13 years of age whose special circumstances necessitate child care

- actual cost up to $346 per month for each child 6 to 12 years of age.

 

Child care expenses may be used to offset income or a training allowance only where such expenses are necessary to permit a client to be employed or to participate in a training program and where the client's spouse, if any, is either also employed or participating in a training program or is otherwise unable to provide the child care.  Child care expenses are not deductible from income or training allowances where they are paid to a beneficiary in respect of whom the client receives a benefit or where they are reimbursable under any other program.    Regulation 15(2)(1)(iv), 15(10,11)

 

It should be noted that the above provisions concerning earnings exemptions are mandatory throughout Ontario since October 1, 1989; prior to that date, each municipal welfare administrator in the province could set earnings exemption levels in his/her jurisdiction ranging from nil to the maximum allowed under the General Welfare Assistance Regulations.   Editorial Comment

 

 

Manitoba - Provincial

 

Under the Social Allowances Program, a person who is not self-employed and has been in receipt of financial assistance for at least 30 days either as a sole-support parent, senior citizen, disabled person or General Assistance case (see section 5.1) may be eligible for earnings exemptions under the Work Incentive provision.  Under these provisions an earnings exemption is allowed which is equal to the greater of:  (i) $50 per month, (ii) 70 cents for each hour worked, or (iii) 30% of gross monthly earnings.  For all other cases (newly-enroled, self-employed, and "Special Dependent Care" cases), the earnings exemption is $50 per month up to $600 per year.  In addition, deductions are allowed for most compulsory payroll deductions (e.g., C.P.P. and U.I.) and necessary work expenses such as transportation, work clothing, equipment and child care.  Income tax is not an allowable deduction in Work Incentive Cases, but income tax refunds are exempt from the calculation of a client's financial resources.    Regulation 8(1)(b); Policy E2-21-01

 

In the case of a social allowance recipient licensed under the Manitoba Child Day Care Program as a provider of family day care services, 30% of gross monthly per diem payments received are exempt from the calculation of financial resources.    Regulation 8(1)(b)(a)

 

Incentive allowances paid under the Human Resources Opportunity Program to Work Activity Project participants are not considered as a financial resource.  A monthly exemption of $20 is allowed on training allowances paid to Work Activity Project participants.    Regulation 8(1)(b)(vi); Policy E2-21-03

 

The net amount of a Manpower Training Allowance is considered as unearned income and hence totally chargeable.   Policy E1-11-01

 

 

Manitoba - Municipal

 

The Municipal Assistance Regulation stipulates that where a municipality provides for an exemption of earned income from the financial resources of an applicant or recipient, the resulting increase in the cost of municipal assistance is eligible for cost sharing between the province and that municipality, to the extent that the cost of the increase is shareable by the federal government under the Canada Assistance Plan. [Editor's Note: the Canada Assistance Plan Guidelines on Assistance establish conditions pertaining to the establishment of "approved provincial costs" for federal cost sharing purposes.  The earnings exemption guideline allows for provincial (or municipal) earnings exemptions up to $95 for a single person or $190 for a family (or 25% of the household's social assistance entitlement].

 

The City of Winnipeg's Municipal Assistance By-law allows for an exemption from earned income of $95 per person per month, not exceeding $130 per month for a household of two or more persons.  "Earned income" is defined as wages and services received from salaried employment, commission sales or self-employment.  Exemptions are calculated against net income, allowing for deductions for income tax, unemployment insurance, group insurance, pension contributions, union dues and other items which are beyond the control of the individual employee.   Policy p. 17.  By-law 6162/93, No. 3(2).

 

The Municipal Assistance Regulation further stipulates that, as of April 1993, income tax refunds are no longer exempted in the calculation of a client household's financial resources.

Regulation 7(1)(d)-repealed 04-93

 

 

Saskatchewan

 

The financial resources of a recipient (unless otherwise exempted) shall include the earned income of the recipient, his spouse (unless she is legally separated from him), and any dependents included in the budget calculation; however, all earnings of a dependent child attending school (including earnings during school holidays) are excluded from the household's income.    Regulation 28(2)(f), 29

 

"Net wages" means gross wages less involuntary deductions; actual work-related expenses may be included in the budget requirements for recipients who are entitled to wage exemptions.    Regulation 28(2)(d), 29A(1)

 

Since October 1987, monthly earnings exemptions are calculated as a flat rate amount plus a percentage of earnings exceeding that amount, up to a specified maximum for disabled and non-disabled case categories by family size, as in the following table.

 

 

Non-Disabled*

Disabled*

One Person Unit

First $25 of monthly earned income + 20% of excess (maximum exemption $75)

First $100 of monthly earned income + 20% of excess (maximum exemption $150)

Two Person Family

First $50 of monthly earned income + 20% of excess (maximum exemption $150)

First $125 of monthly earned income + 20% of excess (maximum exemption $225)

Three Person Family

First $75 of monthly earned income + 20% of excess (maximum exemption $150)

First $150 of monthly earned income + 20% of excess (maximum exemption $275)

Four Person Family

First $100 of monthly earned income + 20% of excess (maximum exemption $225)

First $175 of monthly earned income + 20% of excess (maximum exemption $300)

Five Person Family or Larger

First $125 of monthly earned income + 20% of excess (maximum exemption $250)

First $200 of monthly earned income + 20% of excess (maximum exemption $325)

 

*NOTE : The above earnings exemptions apply to fully employable ("Non-Disabled") clients only after they have been in receipt of social assistance for at least the previous three consecutive months.  Clients in the "Disabled" or "Not Fully Employable" categories (see section 2.6) are entitled to the earnings exemption from the date of eligibility when they receive income from salaried employment (including wages in sheltered workshops).    Regulation 28(2)(d), 28(4); Policy 17-1-1

 

Special exemptions :

a) in the case of approved family day care operators, the first $50 of the monthly payment is related to expenses necessary to maintain the child; the remaining amount is considered earnings upon which the regular exemption may be allowed;

b) the 25% earnings exemption for employed handicapped persons living in a residential facility will be applied to an amount equivalent to the current maximum OAS/GIS rate.    Policy 17-1-3

 

Where earnings or maintenance payments fluctuate from month to month, a monthly income average is established and the client placed on payroll; the average so established must be reviewed periodically (max. two-month intervals) to reconcile estimated and actual income.  Where monthly earnings fluctuate so greatly that it is not practical to establish average monthly income, the recipient is required to report his income just prior to payroll cut-off so that any necessary adjustments to entitlement may be made before cheque issue.    Policy 18-1-2

 

No exemption is allowed against training allowances in Saskatchewan.    Policy 18-1-9

 

Income tax refunds, including interest, are considered income.  The income tax refund cheque may also include tax credits which are exempt as income; the client is expected to verify what portion of the refund is the tax credit.    Policy 18-1-7

 

 

Alberta

 

"Employment Income" includes

i) the value of non-monetary benefits provided as compensation for employment, and

ii) a payment from the Government of Alberta to the applicant or recipient that is in the nature of a fee for the provision of care (basic and extraordinary maintenance) to a person to whom the applicant or recipient is responsible for providing care,

but does not include income from self-employment, other than income earned by an applicant or recipient from providing child care services in the applicant's residence.   Regulation 1

 

The exemption allowed with respect to the net income from employment of the applicant or recipient and all adults in the family unit is equal to $115 per month plus 25% of any net income exceeding this amount.   Regulation 7(s) - eff. 10-93

 

The Director shall calculate a person's net employment income by subtracting from the person's gross income

a) any deductions required by law,

b) any deductions required by the employer as a condition of employment, and

c) where the person's wages are garnished,

i) in a case where the garnishee summons was served before the application for a social allowance is made, once only an amount equal to the amount of the first payment that is paid pursuant to the summons after the application, and

ii) in a case where the garnishee summons is served during the time when a social allowance is being paid, once only an amount equal to the amount of the first payment that is paid pursuant to the summons after the summons is served.   Regulation 8

 

Where a recipient spends non-exempt income (including earned income) in an emergency as defined in section 29 of the Social Allowance Regulation (see "Emergency Allowance" in section 5.3.9), the emergency item is shown as a need on the recipient's budget.  Benefits not previously requested may not be used to offset part or all of income reported unless the expense was the result of an emergency.  Income offsetting is not allowed in any other situation.   Regulation 3,11; Policy 02-07-01,03-01-01

 

No earnings exemptions are allowed against training allowances; however, some employers (notably sheltered workshops) call payments to clients "training allowances" when they are in fact sub-minimum wages and thus eligible for earnings exemptions.   Policy 02-07-01 p.20

 

 

British Columbia

 

"Earned income" includes:  any form of money, goods, services, commissions, or bonuses obtained in exchange for work or provision of a service; tax refunds; pension plan contributions that are refunded due to insufficient contributions necessary to create a pension; or money, goods or services derived from the provision of room and board, or from the rental of rooms that are common to and part of a recipient's actual place of residence, where the Director authorizes such money, goods or services to be considered as earned income.    Regulation 2

 

"Net income", which is the amount used to establish eligibility for income assistance and the amount of assistance payable, means all unearned income plus the amount of non-exempted earned income after deductions for income tax, unemployment insurance, medical insurance, Canada Pension Plan, superannuation, company pension plan, and union dues.    Regulation 2

 

No earnings exemptions are allowed in the case of a client 65 years of age or older, a client receiving Hardship Assistance (see section 5.2.10 "l") or a transient; where a transient subsequently qualifies for income assistance, his/her time on assistance as a transient will count toward the three-month waiting period for an earnings exemption.    Policy 3.27.3

Income exemptions under the Guaranteed Available Income for Need Act consist of a flat rate exemption and an enhanced earnings exemption, which are applied to earned and unearned income in the following order :

 

SOURCE OF INCOME

MAX. MONTHLY EXEMPTION*

Unearned income

    - maintenance payments:

     (see section 3.5)

 

$50 for single persons, $100 for clients with dependants.

    - non-Ministry training allowances:

     (see "Training Allowances" below)

$50 for single persons, $100 for clients with dependants.

[NOTE: the allowable exemption for federal training allowances is $100 for single persons and persons with dependants.]

    - DVA or WCB allowances:

     (see section 3.1)

$50 for a single person or a household including at least one person over 60 years of age

Earned income

 

 

 

 

 

 

 

 

    $100for single persons

    $200for clients with dependants

    $200for a client of Handicapped Benefits (see section 6.3)

    $200for a family including at least one person over age 65 receiving OAS, Seniors Supplement (see section 6.1) or SPA

Policy 3.15.9 earned income exemption eff. 05-92

    * The maximum exemption for any combination of unearned income is $50 for single persons and $100 for clients with dependants (except for federal training allowances - see above); the maximum exemption for any combination of earned and unearned income is $100 for single persons and $200 for clients with dependants.

The flat rate exemption on net earned income is applied only after the client has received full or partial benefits for more than three consecutive months.   Regulations, Schedule B, no.6(5)

 

 

 

 

A client who leaves income assistance for any reason other than employment or training and then returns to the program must restart the three-month waiting period for the earnings exemption; a client returning to the program after a period of temporary employment lasting less than 12 weeks need not restart the waiting period.    Policy 3.15.2, 3.15.3

 

Enhanced Earnings Exemption

 

An employable recipient is eligible for a further exemption equal to 25% of net earned income which exceeds the above monthly flat rate exemption levels.  Except for recipients of the provincial Seniors Supplement (see section 6.1), all Income Assurance clients (see section 5.1) may choose to be coded employable if they can benefit from the enhanced earnings exemption.    Policy 3.15.2, 4.9.1

 

NOTE : The enhanced earnings exemption of 25% exceeding flat rate exemptions applies only to earned income of employable recipients.  An employable household may benefit from the enhanced earnings exemption for 12 months in a 36 month period, with a possible extension of up to six months (beyond the 12 month limit) where the client can demonstrate that he or she is making progress towards becoming self supporting.There is no limit on the number of months during which the enhanced earnings exemption may be applied in the case of a client receiving GAIN for Handicapped benefits (see section 6.3).    Press Release issued 13-10-89

 

An exemption on earned income is granted only during the month in which earned income is actually received.    Regs. Sched. "B", No. 7

 

Training Allowances :

 

Income assistance recipients who are also receiving training allowances from a federal government agency such as Human Resources Development Canada, Indian and Northern Affairs, Correctional Services or Veterans' Affairs are allowed exemptions for the actual cost of books and fees and actual expenses up to $100 monthly.  A total exemption is allowed on EIC training allowances paid to a dependent child in an income assistance household or a child in the home of a relative (see section 2.11).    Policy 3.15.7

 

Where an income assistance recipient is receiving a dependant care allowance from EIC, any amount received which exceeds day care expenses is totally deducted from the household's income assistance entitlement.    Policy p. 3.15.2

 

Incentive allowances paid by the Ministry of Social Services are totally exempt from the calculation of financial resources.    Policy p. 3.15.3

 

 

Yukon

 

In the determination of eligibility for social assistance and the amount of entitlement thereto, net income from full-time employment (i.e., over 20 hours per week) is totally considered as a financial resource.    Regulation 18(2)(a)

 

NOTE : A compensatory allowance is payable to full-time employees - see section 5.3.11 No. "h".

 

The earnings exemption allowed on net income from part-time or casual employment is equal to the greater of:

i) one half of the net casual or part time earnings of the applicant, his spouse and dependent children not attending school, but not exceeding 25% of the total of those items of basic requirements that are necessary to maintain an applicant and his dependents; or

ii) $5 per month for a single person, $10 per month for a family of two persons, or $15 per month for a family of three or more persons.   Regulation 18(3)(d)

 

Net earnings are calculated by subtracting involuntary deductions and the reasonable cost of transportation to and from work from gross earnings.    Regulation 18(3)(c)

 

In the case of persons deemed to be permanent exclusions from the labour force (see section 2.7, 2.8), a monthly amount of $25 for a single person and $50 for a married couple received from sale of handicrafts, hobby materials or use of special talents may be allowed as an income exemption.    Regulation 18(13)(h)

 

 

Northwest Territories

 

Considered as earned income are net salary and wages including voluntary deductions. However, as an incentive to take and hold employment, in calculating whether a budget deficit exists, an applicant is entitled to deduct from his monthly earned income $50, in the case of an applicant who has no dependents or $100 in the case of an applicant who has one or more dependents.    Regulations 20(3)(a), 20(6)

Any income received under the National Training Act is considered unearned (no exemption is allowed on such income).   Regulation 20(4)

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