New Canada Workers Benefit payments to start July 28, 2023

Starting July 28, 2023, the New Canada Workers Benefit will provide quarterly payments to support Canada’s lowest-paid workers and enhance affordability in their lives.

Eligible single workers can receive up to $1,518, while families can get up to $2,616 based on their income, distributed across three basic quarterly payments. Additionally, eligible Canadian workers with a disability can receive up to $737 as a supplement, depending on their annual income.

Typically, eligible families or individuals will receive this payment on July 28, though it may take up to 10 business days for the payment to reflect in their linked bank account with the CRA.

What is Canada Workers Benefit?

The Canada Workers Benefit (CWB) is a program designed to assist individuals and families who work but do not earn sufficient income to meet their basic needs. It consists of two components: the Basic Amount and the Disability Allowance. Eligible recipients can claim the CWB when filing their income tax returns. With the introduction of the Advanced Canada Workers Benefit (ACWB), eligible individuals and families can receive advance payments, starting in July 2023, equivalent to 50% of the CWB.

Eligibility for Canada Workers Benefit

To be eligible for the Basic Amount of CWB, individuals must meet the following requirements:

• Be a resident of Canada throughout the tax year.
• Be 19 years or older as of December 31, or live with a spouse, common-law partner, or child.
• Have earned income during the tax year.

The income thresholds for eligibility depend on the province of residence and family composition. Here are the income thresholds for various scenarios:

Please note that certain individuals are ineligible for the CWB, including full-time students (unless they have an eligible dependent), individuals serving prison sentences for at least 90 days during the year, and individuals who do not pay taxes (e.g., diplomats) or their family members.

Eligibility for Disability Supplement

To qualify for the Disability Supplement under the CWB, individuals must meet the following requirements:

• Qualify for the disability tax credit and have an accepted Form T2201, Disability Tax Credit Certificate, on file with the CRA.
• Have earned income during the tax year. The income thresholds for eligibility for the Disability Supplement are as follows:

How Much Canada Workers Benefit Payment Can I Get?

The Canada Workers Benefit payment amounts are based on an individual’s adjusted net income. Here are the payment amounts based on different income ranges:

For Individual Living Alone:

• Up to $1,518 if adjusted net income is less than $23,495.
• The payment progressively reduces as income increases until $33,015.
• No CWB payment is received if adjusted net income exceeds $33,015.

For Families:

• Up to $2,616 for households if family’s adjusted net income is less than $26,805.
• The payment progressively reduces as income increases until $43,212.
• No baseline CWB payment is received if adjusted family net income is more than $43,212.

The maximum baseline CWB amount varies for residents of Quebec, Nunavut, and Alberta.

The maximum disability benefit payment is $737 for individuals living alone with an adjusted net income of less than $33,018. No disability supplement is paid if an individual’s adjusted net income exceeds $37,932.

For families, the maximum disability benefit payment is $737 if their adjusted family net income is less than $43,210. No disability supplement is paid if one spouse is eligible for the disability tax credit and the adjusted family net income is more than $48,124, or if both spouses are eligible and the adjusted family net income is more than $53,037. The maximum disability supplement varies for residents of Quebec and Nunavut.

How to Apply for Canada Workers Benefit?

To apply for the Canada Workers Benefit, individuals can use certified tax software and follow the provided instructions online. Alternatively, the application can be completed on paper by filling out and submitting Schedule 6, Canada Workers Benefit, when filing income tax returns.

For the Disability Supplement, if either you or your spouse qualifies for the disability tax credit, both the base credit and the disability supplement must be claimed. If both spouses are eligible, only one can claim the minimal amount, but the disability supplement must be claimed on separate Schedule 6 forms.

Canada Workers Benefit Payment Dates

The New Canada Workers Benefit payments will be distributed as follows:

• First payment: July 28, 2023
• Second payment: October 12, 2023
• Third payment: January 12, 2024
• The Advanced Canada Workers Benefit (ACWB) payments will also be issued on the same dates: July 12, 2023, October 12, 2023, and January 12, 2024.

If you don’t receive your Canada Workers Benefit, follow these steps:

• Verify your eligibility for the Canada Workers Benefit.
• If you are eligible and haven’t received the payment, contact the Canada Revenue Agency (CRA).
• Note that if the payment date falls on a weekend or a federal holiday, the payment will be made on the previous business day.
• Allow 10 business days before reaching out to the CRA in case the payment is delayed.
• The CRA will assist you with any issues or inquiries regarding your benefit payment.