What are Government Benefits in Canada?

Government benefits in Canada refer to the system of programs and financial assistance provided by federal, provincial, and territorial governments to support the well-being of citizens.

Eligible individuals and families can receive government benefits to help with income, food, housing, health costs, raising children, disabilities, unemployment and other needs. Different benefits target specific populations and life circumstances.

Critical features of government benefits in Canada:

• Various government departments and agencies administer them. For example, Service Canada delivers federal programs, and provincial social services ministries manage provincial benefits.
• Funded through tax revenues and contributions, such as Employment Insurance premiums. Some benefits are non-taxable payments, while others provide tax credits or preferred tax treatment.
• Many ongoing, regular benefits are provided every month (e.g. Canada Pension Plan, social assistance). Others are one-time payments or credits.
• You must meet the eligibility criteria for each program, which are based on factors like income level, employment status, health condition, and demographics.
• Benefit rates and amounts vary by program – determined based on formulas and household circumstances.
• Some require actively applying, while others are automatically enrolled.
• Play an essential role in Canada’s social safety net and help ensure a basic standard of living.

In summary, government benefits in Canada comprise a variety of income support, tax relief measures, in-kind assistance, and specialized services provided by federal, provincial, and territorial governments. They form an integral part of the country’s overall social security system.

The federal government administers national benefit programs available to all Canadians who meet eligibility rules. These constitute a significant pillar of the country’s social security system.

Employment Insurance in Canada (EI) provides temporary financial assistance to eligible workers who lose their job through no fault of their own. The government collects EI premiums from employees and employers to fund the program.

• Temporary income support for unemployed Canadians due to no fault of their own, administered by Service Canada
• Types: regular EI benefits, sickness benefits, maternity/parental benefits, compassionate care benefits
• 55% of average insurable weekly earnings, up to a maximum amount ($650 per week in 2023)
• Must apply with ROE and meet eligibility criteria

Regular EI Benefits

• For individuals who lost their jobs due to shortage of work, layoff, end of contract, business closure etc.
• The number of insurable hours of work required to qualify depends on the unemployment rate in your region, ranging from 420 to 700.
• Payments last 15 to 45 weeks based on number of hours worked.
• Weekly payment amounts are 55% of your average weekly wages up to a maximum insurable earnings amount.

Sickness EI Benefits

• For employees unable to work due to illness, injury, or quarantine.
• A medical certificate showing you’re unable to do your job is required.
• Up to 15 weeks of payments within a 52-week period.
• Weekly amount is 55% of your average weekly earnings up to the maximum insurable amount.

Maternity and Parental EI Benefits

• For new parents needing income support during maternity and parental leave when caring for a newborn or adopted child.
• Maternity EI lasts up to 15 weeks, starting as early as 12 weeks before the due date.
• Standard parental leave can last 35 weeks, while extended parental leave spans 61 weeks but with a lower benefit rate.
• Payment amounts are 55% of average weekly earnings up to the EI maximum.

Compassionate Care EI Benefits

• For people temporarily away from work to care for a family member with a serious medical condition and significant risk of death within 26 weeks.
• A Medical certificate is required, plus proof of the caregiving relationship.
• Up to 26 weeks of income support within a 52 week window.
• 55% of average weekly earnings up to the EI maximum rate.

Other special EI benefits also exist, such as family caregivers of critically ill children.

Applying for EI

• You must submit an application either online or in person at a Service Canada Centre.
• Your employer issues a Record of Employment (ROE) that you’ll need to provide.
• After submitting your application, complete bi-weekly reports during the benefit period confirming eligibility.
• The federal government provides a detailed EI application guide [1].

EI Payment Amounts

The amount of EI benefits paid depends on your previous earnings and the regional unemployment rate where you live. Currently, the maximum EI weekly amount is:

• 2022 – $638 per week
• 2023 – $650 per week

The minimum benefit is $300 per week if you have earned enough to qualify.

EI benefits are taxable income. You can use this EI benefits calculator to estimate your payment range [2].

The Canada Pension Plan (CPP) provides retirement pensions and other benefits via mandatory contributions from employees, employers, and self-employed Canadians. CPP is designed to replace part of your income in retirement or if you become disabled.

• Contributory base retirement pension and disability, survivor, death, and children’s benefits
• Standard age to receive CPP retirement pension is 65 (60-70 also possible)
• Maximum monthly CPP at age 65 is $1,306 in 2023, average closer to $700
• Apply through Service Canada; amount based on lifetime contributions

CPP Retirement Pension

• A monthly, taxable pension available to Canadians aged 60 or over who have made at least one CPP contribution during their career.
• The standard age to begin receiving CPP is 65 but you can take it as early as 60 or defer payments until you turn 70.
• The size of your CPP retirement pension depends on your contributory earnings history and the age at which you start receiving it.
• You must apply to start CPP payments – it does not begin automatically.

CPP Disability Benefit

• For CPP contributors under age 65 who are unable to work due to a severe and prolonged mental or physical disability.
• Applicants must submit medical evidence and have contributions in 4 of the last 6 years.
• Monthly, taxable benefit equal to CPP retirement pension amount you’ve accumulated plus amounts until age 65.
• Available until you turn 65 and convert to CPP retirement pension.

CPP Survivor’s Pension

• Available to the surviving spouse or common-law partner of a deceased CPP contributor.
• Payments are made if their retirement pension stops when the contributor dies.
• The size of the monthly survivor benefit depends on the amount of CPP retirement pension accrued by deceased spouse.
• The maximum survivor’s pension is 60% of the deceased contributor’s amount.
• Orphan benefits are also payable to dependent children of deceased contributors.

Applying for CPP

• Contact Service Canada to apply for CPP benefits and provide the required documentation.
• Certain benefits like CPP disability have detailed applications including medical reports.
• CPP applications require personal information like SIN, marital status, banking details etc.

CPP Payment Amounts

The maximum monthly CPP amounts for new recipients are:

Very few Canadians receive the absolute maximum. The size of your CPP depends on your income relative to the yearly maximum pensionable earnings ($64,900 in 2022) and the age at which you take it.

An estimate of your CPP retirement pension can be accessed via your online My Service Canada Account [3].

The Old Age Security (OAS) program is a retirement pension paid to Canadians aged 65+ who meet certain legal status and past Canadian residency requirements. OAS is funded directly from the federal government’s general tax revenues.

• Monthly pension for Canadians 65+ who meet legal status and 10-year minimum residency requirements
• Payments start at 65 but can be deferred until 70 to increase amount
• Maximum monthly OAS is $634 in 2023 but may be clawed back based on net income

Eligibility

You must be:

• 65 years or older
• A Canadian citizen or legal resident
• Have lived in Canada for at least 10 years after turning 18.
• Status Indians and residents when OAS was implemented have additional options.

Applying for OAS

• You may be automatically enrolled for OAS the year you turn 64 based on your income tax return. A letter will be sent.
• If you don’t receive a letter, you must submit an application to Service Canada.
• OAS payment commences the month after you turn 65 unless you choose to delay receiving it.

OAS Payment Amounts

The maximum monthly OAS pension is:

• 2022 – $642
• 2023 – $634

The actual OAS amount you receive depends on:

• How long you’ve lived in Canada after turning 18
• Your marital status
• Annual individual income

It can be reduced if your net income exceeds certain thresholds via the OAS recovery tax or “clawback”.

Consult the OAS payment calculator to estimate your benefit amount [4].

Deferring OAS

You can voluntarily defer receiving your OAS pension for up to 5 years past age 65. This will increase the monthly amount by 0.6% for every month deferred to a maximum increase of 36% at age 70.

Spousal and Survivor’s OAS

Additional OAS benefits are available to spouses and surviving spouses aged 60-64 of OAS pension receivers. Certain eligibility rules apply depending on the circumstances.

The Guaranteed Income Supplement (GIS) provides monthly, non-taxable income support to low-income individuals aged 65+ who receive Old Age Security. Applying for GIS is required – it is not automatic.

• Additional monthly income support for low-income seniors also receiving OAS
• Eligibility based on marital status and household income level
• Must apply through Service Canada and file annual tax returns
• Maximum GIS is $1,026 monthly for a single, widowed or divorced pensioner

Eligibility

You must:

• Be 65 years or older
• Receive an Old Age Security pension
• Have limited income besides your OAS pension
• Live in Canada

Applying for GIS

• Applications can be submitted along with your OAS or separately.
• You must file annual income tax returns to confirm income amounts.
• Provide information on residence, marital status, and banking details.
• The government provides a detailed GIS application guide [5].

GIS Payment Amounts

GIS benefits are based on your marital status and household income levels.

Maximum monthly GIS amounts (2022-2023):

If you receive the full OAS amount, your GIS payment can reach $1,026 monthly as a single, widowed or divorced individual.

Exactly how much GIS you receive also accounts for other income like CPP benefits, pensions, interest etc.

Use the GIS benefits calculator to estimate your potential payment [6].

The Canada Child Benefit is a tax-free monthly payment made to eligible families to help with the costs of raising children under age 18. The CCB consolidates and replaces previous child benefit programs.

• Tax-free monthly payment to help eligible families with costs of raising children under 18
• Maximum CCB is $7,439 annually per child under 6 and $6,275 per child 6-17
• Gradually reduced based on adjusted family net income and number of kids

Eligibility

To receive the CCB, you must:

• Live with a child under 18 years old
• Be the primary caregiver responsible for the child
• Be a Canadian citizen, permanent resident, refugee or protected person
• File annual income tax returns, even with no income to report

Applying for CCB

• You must complete an application form online or via mail to begin receiving the benefit.
• If eligible, CCB payments commence after application processing and continue each month while your child is under 18.
• You must re-apply after any changes in marital status or number of children.

CCB Payment Amounts

The CCB provides a:

• Base amount for children under 6
• Base amount for kids aged 6 to 17
• Additional amount for each child based on adjusted family net income.

For the 2022-23 CCB year, the maximum annual benefits are:

• $7,439 for each child under 6
• $6,275 for each child aged 6 to 17

CCB payments decrease as your adjusted family net income rises above $31,711 but some amount is still provided until approximately $215,000 for a one or two child household.

This CCB payment calculator allows you to estimate your entitlement based on your family makeup and income [7].

The Disability Tax Credit (DTC) is a beneficial, non-refundable tax credit that reduces income taxes owed to eligible individuals with a prolonged and severe physical or mental impairment. Certain supplementary benefits are also available in conjunction with the DTC.

• Non-refundable tax credit for Canadians with prolonged and severe mental/physical disability
• Must apply each year and have Disability Tax Credit Certificate approved by a medical practitioner
• Value is $1,512 in 2023 based on indexed amount

Eligibility

To qualify for the DTC, you must have:

• An approved disability with prolonged impacts lasting at least 12 months.
• A significant restriction on the ability for basic daily living activities.
• A Disability Tax Credit Certificate approved by a medical practitioner.

You can self-apply or name a dependent, caregiver or other qualified person to claim the DTC.

Applying for DTC

• Complete Form T2201 Disability Tax Credit Certificate with a medical doctor, nurse practitioner or other approved medical practitioner.
• Submit the certified T2201 along with your income tax return to the CRA each year you wish to claim the DTC.
• The CRA will determine if you are eligible and approve the DTC claim.

DTC Amounts

The value of the non-refundable Disability Tax Credit is:

• 2022 – $1,469
• 2023 – $1,512

This amount is indexed annually. Approved DTC claims remain valid until the CRA re-assesses your eligibility.

Certain other benefits and programs also utilize DTC eligibility like the Registered Disability Savings Plan, Child Disability Benefit and qualifying for CPP disability.

A range of other income support and tax relief programs exist at the federal level. Some key examples include:

Canada Workers Benefit

• Refundable tax credit supplementing income for eligible low-income individuals and families.

GST/HST Credit

• Quarterly tax-free payments to help offset sales taxes for low- and modest-income households.

Canada Training Credit

• Refundable tax credit returns half the eligible tuition and other fees paid for training.

Climate Action Incentive

• Tax-free annual payment to help offset costs of federal carbon pricing systems for residents in eligible provinces.

Northern Residents Deductions

• Deductions reduce taxable income for residents of prescribed northern areas.

Caregiver Tax Credits

• Deductions for caregivers with expenses supporting dependent relatives with physical/mental impairments.

Adoption Tax Credit

• Non-refundable credit for qualifying adoption-related expenses.

Home Accessibility Tax Credit

• Non-refundable credit for certain home renovations improving disability accessibility.

Working Income Tax Benefit

• Refundable tax credit supplementing wages of eligible working low-income Canadians.

In addition to federal programs, each provincial and territorial government offers benefits tailored to their jurisdiction’s specific needs and priorities.

In addition to federal programs, each provincial and territorial government offers benefits tailored to their jurisdiction’s specific needs and priorities.

Provincial Health Care Coverage in Canada

Under Canada’s universal public health care system, every province and territory provides hospital and physician insurance coverage to all residents.

What is Provincial Health Care Coverage ?

• Each province/territory manages its own health insurance plan and premiums/payroll taxes that fund the system.
• Medically necessary hospital and physician services are fully covered, like surgeries, x-rays, appointments with doctors etc.
• Supplemental services and products are not included , like prescription drugs, dental, vision care, long-term care, and private or semi-private hospital rooms.

Interprovincial Reciprocal Billing

• Provinces and territories have reciprocal billing agreements allowing temporary health coverage when travelling within Canada.
• For hospital and physician services, your home province health plan is still billed.
• Time periods range from 3 months to 1 year before becoming a resident of the new province.

** Applying for Provincial Coverage**

• Application process and eligibility criteria (e.g. residency period establishment) vary in each region.
• Citizens returning or moving from another country/territory may need to wait several months before qualifying.
• Migrant agricultural workers have special considerations under provincial health plans.

Private Health Insurance

• Many Canadians obtain private health insurance via employee group plans or individual policies.
• Private coverage helps pay for services excluded under public provincial plans or provides enhanced options.
• Common supplemental health benefits include prescription drugs, dental, vision, massage, mental health services etc.

Provincial Prescription Drug Coverage

Most Canadian provinces administer public prescription drug insurance programs to assist residents with medication costs based on age, medical condition or income level. Each provincial Pharmacare plan has its own specific eligibility rules, formulary of covered drugs, and cost-sharing structure.

Seniors’ Drug Plans

All provinces have prescription drug coverage for seniors 65+ without employer benefits or very high drug costs relative to their income. Examples:

• Ontario Seniors Co-Payment Program – Requires paying deductible and up to $2 co-pay per prescription. Based on income.
• Alberta Coverage for Seniors – Provides premium-free drug coverage for Albertans 65+ without private insurance. 30% co-pay to a maximum of $25 per prescription.

Social Assistance Recipients

• Residents on social assistance like welfare automatically receive prescription coverage.
• Often no co-pays or deductibles. Covers formulary drugs.

Catastrophic Coverage

• Helps cover high prescription costs for those without coverage who would otherwise face financial hardship.
• BC Fair PharmaCare assists households spending >4% of after-tax income on drugs based on income and family status.

Select Medical Conditions

• Special provincial plans assisting individuals with specific health conditions, diseases or needs.
• E.g. Manitoba Home Cancer Drug Program, Ontario Inherited Metabolic Diseases Program.

Applying for Provincial Drug Coverage

• Eligibility criteria, required documents, processes, and application forms differ in each province.
• Websites like Ontario Government Provincial Drug Programs [8] provide program-specific information.
• Often enrollment is integrated with income tax filings, other social support or private insurer records.

Provincial Disability Assistance

Canadians facing financial hardship due to both short- and long-term mental or physical disabilities can receive income support and health benefits through provincial disability programs. Names and exact criteria vary by region but all aim to cover basic, disability-related and special needs.

British Columbia

• BC Disability Assistance – Two separate monthly financial benefits based on individual or couple status.
• Persons with Persistent and Multiple Barriers – Additional assistance specifically for those facing severe daily living barriers.

Alberta

• Assured Income for the Severely Handicapped (AISH) – Provides financial and health benefits to eligible working-age adults.
• Persons with Developmental Disabilities – Community living support services administered by provincial authorities.

Saskatchewan

• Saskatchewan Assured Income for Disability (SAID) – Monthly payments depending on household size and other assistance.
• Saskatchewan Disability Income Support for Children – For families caring for children with long-term disabilities.

Manitoba

• Manitoba Disability Support Program – Offers monthly income assistance and health benefits for eligible residents with disabilities.
• Employment and Income Assistance for Persons with Disabilities – Long-term, non-EIA disability assistance.

Ontario

• Ontario Disability Support Program (ODSP) – Financial aid and benefits for disabled individuals. Two support categories: income and employment.
• Assistance for Children with Severe Disabilities – Additional income support for families caring for children with severe, long-term needs.

Quebec

• Quebec Disability Support Program – Last resort program providing financial assistance and health care to eligible disabled individuals.
• Additional assistance like the Housing Adaptation Program.

Applying for Disability Assistance

• Detailed applications with needs assessments and doctor’s confirmation of disability and barriers.
• Income, assets and identity documentation required. Online, in-person and paper application formats.
• Special support like employment training, caregiver respite, medical transport and equipment may be provided.

Social Assistance and Income Support

When faced with challenging life circumstances, Canadians can seek temporary support to meet the basic costs of living through provincial and territorial social assistance programs. These ‘welfare’ systems act as an income safety net of last resort when all other options are exhausted.

Types of Assistance

• Support typically provided for shelter, food, clothing, personal care, healthcare, transportation and other key needs.
• Benefit types and amounts vary based on household makeup (e.g. singles, families with children, persons with disabilities etc.).
• Special benefits may cover a pregnancy, emergency housing repair costs, funerals etc.

Eligibility

• Provincial residency status rules apply, often with minimum time periods.
• Must demonstrate financial need and inability to independently support basic requirements.
• Assets and income testing required – personal and household resources must fall below thresholds.
• Able-toodied individuals must actively search for jobs in most regions.

Application Process

• Alberta Works [9], Ontario Works [10], BC Employment and Assistance [11] etc. administer programs in each province/territory.
• In-person, telephone, mail and online application methods. Documentation proving eligibility and identity required.
• Benefits are issued monthly or bi-weekly. Require regular eligibility review and updates.

Provincial Child and Family Benefits

On top of the federal Canada Child Benefit, many provincial governments also offer supplemental child and family benefits, credits and rebates. These aim to further aid families – especially those considered low- or modest-income – with the high costs of raising children.

Some examples include:

Alberta

• Alberta Child and Family Benefit – Up to $3,030 annually per child in extra financial assistance for lower and middle-income families.

Ontario

• Ontario Child Benefit – Up to $244/month per child. Income-tested benefit for low-moderate income families with children under 18.

Quebec

• Quebec Family Allowance – Annual credit of $3,312 per eligible child under age 18.

British Columbia

• BC Child Opportunity Benefit – Up to $3,630 annually paid to families with children under 18 who meet income eligibility.
• BC Affordable Child Care Benefit – Need-based payment to help eligible families with the costs of childcare.
• BC School Age Child Care Subsidy – Financial assistance for school-aged child care costs of eligible families.

New Brunswick

• NB Child Tax Benefit – Families can receive up to $250 annually for one child and $250 for each additional child under 19.

Additional Key Provincial and Territorial Benefits

Housing and Homelessness Assistance

• Rent supplements, social housing support, emergency shelter funding and homelessness prevention initiatives.

Utility Bill Support

• Programs reducing the costs of electricity, heating fuel, water and other utilities. Often targeted for seniors and low-income households.

Education and Training Funding

• Financial aid like grants, bursaries, loans and targeted funding for post-secondary tuition and vocational training.

Legal Aid

• Legal services assistance for eligible low-income individuals via provincial legal aid plans.

Workers’ Compensation

• Mandatory workplace injury insurance delivering wage replacement, healthcare and vocational rehabilitation. Funded via employer premiums.

Dental and Optical Assistance

• Provincial benefit plans and targeted programs assisting children, seniors, social assistance recipients and other qualifying populations with dental and vision care costs.

Navigating the application process for the various government benefits you may be eligible for is an important step. Here is a general overview of how to apply:

• Visit the official Government of Canada benefits website and your provincial government website to browse available supports.
• Determine which benefits you may qualify for and carefully review eligibility criteria.
• Identify required application forms, documentation, processes and timelines for each specific government program.
• Visit or contact federal, provincial and municipal offices for guidance on the application process if required.
• Submit applications online, in-person or via mail-in forms following all instructions. Provide accurate, complete information.
• Attach necessary supplementary documents verifying your eligibility for benefits like proof of income, doctor’s notes, insurance status etc.
• Follow up as needed on benefit applications and provide ongoing eligibility renewals or updates as programs dictate.
• If approved, select suitable payment methods like direct bank deposit to receive benefits.
• Report any changes in your circumstances impacting eligibility as required. Stay organized with benefit records and info.
• Re-apply in the future prior to benefit expiry as necessary. Set reminders for renewals and reviews.

• Canada’s complex government benefits system provides a range of financial, social and health support to individuals and families.
• Major federal programs include EI, CPP, OAS and GIS, CCB, DTC, while provinces offer health coverage, drug plans, disability pensions, child benefits and other assistance.
• Review eligibility criteria for all programs – they target those in demonstrated need, including vulnerable populations.
• Apply correctly for benefits you qualify for – follow requirements and provide full documentation.
• Receive the income support, tax relief and essential services to which you may be entitled. Benefits provide an important public safety net.
• Visit the Government of Canada and provincial government websites for the most up-to-date benefits information and changes that occur.

Managing your benefits and figuring out which government programs you may be eligible for can be complex. Get simplified, practical guidance by bookmarking ebsource.ca – Canada’s #1 destination for employee benefits insights.