In every jurisdiction, eligibility for social assistance is primarily based on a “needs test” that considers a household’s income and financial assets. Although these are not the only determinants of eligibility, they form the primary basis for both initial and ongoing eligibility.

How do asset and income tests work?

To qualify for social assistance, a household’s assets and income must fall below certain limits set by each province or territory. These limits can vary by household size and composition. The needs test applies at the time of application, when eligibility is initially determined, as well as continuously, since households must declare any new assets or income while receiving benefits. This declaration, and the calculation for eligibility, is typically done monthly. Some jurisdictions set different limits for those applying for social assistance compared to those already receiving it.

Given that social assistance is considered a “last resort” income support program, all amounts of assets and all amounts of income, from any source, are counted against a household’s benefit eligibility, unless the source is specifically “exempt” from the test’s calculations. The underlying assumption is that households will use these assets or income to support themselves, reducing the need for social assistance benefits.

The asset test

To be considered for social assistance, a household typically cannot have assets in amounts higher than the program’s allowed maximum. The asset test usually only considers a household’s “liquid” assets, which are those that can be readily converted to cash. This includes cash on hand and in a bank account, as well as certain types of stocks, bonds, and securities. Some amount of these assets is exempt in every province and territory.

“Fixed” assets — such as a primary residence, primary vehicle, personal effects, and items needed for employment — are typically exempt (within certain guidelines) from the asset test. All jurisdictions also exempt the value of Registered Education Savings Plans (RESPs) and Registered Disability Savings Plans (RDSPs). Several have some exemptions for Registered Retirement Savings Plans (RRSPs) as well as other asset sources.

Table A1 shows liquid asset limits in effect in all provinces and territories as of January 2024, as they apply to Welfare in Canada example households. Any changes that occurred during the year are noted in the table. Amounts apply to households that are applying for social assistance as well as households that are already receiving assistance, unless otherwise stated.

Asset limits increased in 2024 in three jurisdictions: 

• In Alberta, limits for households receiving Income Support benefits are based on a multiplier of basic benefit amounts, which are indexed to inflation. As such, asset limits increased as of January 1 along with the inflationary increase to basic benefits. Note that asset limits in Alberta’s Assured Income for the Severely Handicapped (AISH) program did not increase. 
• In the Northwest Territories, the Income Assistance (IA) program was revised and a new Income Assistance for Seniors and Persons with Disabilities (IASPD) was introduced in July 2024. At that point, IA asset limits were changed from a flat monthly amount to an amount equivalent to two months income assistance that the household would be eligible for given its demographic makeup and other eligibility factors. Asset limits in IASPD were $75,000; formerly, those who qualified as persons with a disability under IA criteria were allowed $50,000. 
• In Quebec, amounts for dependent children of recipients are indexed annually, effective January 1 each year; the amounts in the table reflect this indexation increase.

Table A1: Liquid asset limits for Welfare in Canada households, as of January 1, 2024

1. Asset limits refer to those in the “Expected to Work” (ETW) and “Barriers to Full Employment” (BFE) categories of Alberta’s Income Support program, wherein liquid asset limits are equivalent to three months of Core Benefits (plus an amount of the Federal Child Benefit) based on household composition, except for the second unattached single with a disability, for whom the asset limits refer to those in the Assured Income for the Severely Handicapped (AISH) program.

2. Asset limits refer to those in British Columbia’s Income Assistance program, except in the case of the unattached single with a disability. In that case, they refer to those in the Disability Assistance program.

3. Asset limits refer to those in Manitoba’s Employment and Income Assistance (EIA) program, except in the case of the unattached single with a disability. In that case, the MBFE household is an unattached single with a disability receiving Medical Barriers to Full Employment benefits from EIA, while the MSPD household is an unattached single with a disability receiving benefits from the Manitoba Supports for Persons with Disabilities program.

4. Asset limits refer to those in New Brunswick’s Transitional Assistance program (TAP) except in the case of the unattached single with a disability; in that case, they refer to those in the “Blind, Deaf or Disabled persons” category in the Extended Benefits (EB) program.

5. Asset limits refer to those in the Ontario Works (OW) program except in the case of the unattached single with a disability; in that case, they refer to those in the Ontario Disability Support Program (ODSP).

6. Asset limits refer to those in Prince Edward Island’s Social Assistance program except in the case of the unattached single with a disability; in that case, they refer to those in the Assured Income component of the AccessAbility Supports program.

7. Asset limits for applicants and recipients refer to those in the Social Assistance program; the higher amounts apply after the first month. Asset limits for the unattached single with a disability refer to those in the Social Solidarity program. Income received during the month of application for rent, heating, and public utility costs are not considered household assets. All liquid assets are excluded in the Aim for Employment program. Note that asset limits are higher for some returning applicants to Social Assistance, including participants in the Aim for Employment program who have completed the mandatory 12 months of participation and who apply to return in the month immediately following that participation. In these cases, asset limits in 2024 were $2,500 for an unattached single, $5,517 for a single parent with one child, and $5,656 for a couple with two children.

8. Asset limits refer to those in the Saskatchewan Income Support (SIS) program except in the case of the unattached single with a disability; in that case, they refer to those in the Saskatchewan Assured Income for Disability (SAID) Program.

9. This amount represents $500 in cash plus $1,500 in a form other than cash and applies to a person or household who is considered to be excluded from the labour force.

The income test

To be considered eligible, a household’s total income after exemptions typically must be less than the maximum amount of benefits that they would receive from the program. The benefit amount is calculated as the difference between the maximum benefit the household would be eligible for and their income after exemptions. Thus, a household with zero income after exemptions will receive the maximum benefit. A household where income after exemptions is equal to or greater than the maximum benefit will not qualify for assistance.

Given that the income test is typically calculated monthly, households who qualify for assistance can become ineligible if their income after exemptions exceeds the maximum benefit in any given month. Income from a previous month is normally calculated against benefit eligibility in the following month.

This ongoing, monthly test of eligibility is important not only for access to regular monthly financial support but also for access to in-kind benefits, such as health benefits, because access may depend on the household continuing to be eligible for at least some financial assistance. A difference of a few dollars in income can cause a household to lose this access.

Income exemptions are typically different for “earned” and “unearned” income. Earned income is the amount of money that a household gets from employment or self-employment, while unearned income is the amount the household receives from other sources, including pensions, gifts, settlements, and other income support programs.

Earned Income

In all 13 provinces and territories, some amount of earned income is exempt from the needs test. These exemptions allow households who are either applying for or receiving social assistance to earn a certain amount of money from employment without their eligibility for or the amount of their benefits being impacted.

Each social assistance program has its own way of calculating earned income exemptions, but there are generally three approaches:

• A flat-rate amount permits a household to earn a certain amount each month, after which social assistance benefits are reduced dollar for dollar,
• A percentage of earnings approach means that benefits are reduced by a certain percentage of the amount of money earned. For example, a 25 per cent exemption means that benefits are reduced by 75 cents for every dollar earned, and
• A combination of a flat-rate amount and a percentage means that once the flat-rate amount is exceeded, benefits are reduced by a percentage amount.

In some jurisdictions, households that are applying for assistance are not allowed any exemptions for earned income. In these cases, their benefits are reduced dollar for dollar.

In most cases, earned income exemptions are based on monthly earnings (e.g., a household could earn $200 each month before their benefits are reduced). A small number of social assistance programs calculate exemptions based on annual earnings; programs for people with severe disabilities are more likely to have an annual earnings exemption than programs for people who are considered employable.

Typically, net income is counted as opposed to gross income, and both employment and self-employment income are treated the same. In jurisdictions that have more than one social assistance program (e.g., one program for people who are deemed employable and another for people with severe disabilities), earned income exemption levels can differ between programs.

Table A2 shows earned income exemption amounts in effect in all provinces and territories in 2024. Base exemption amounts as well as exemptions for any income that is earned above the base amounts are shown. Any changes that occurred during the year are noted in the table. Amounts are monthly unless otherwise specified and apply to households that are applying for social assistance as well as households that are already receiving social assistance, unless otherwise stated.

In 2024, earned income exemptions were increased in four jurisdictions: 

• British Columbia increased earned income exemptions in both its Income Assistance and Disability Assistance programs as of January. 
• The Northwest Territories revised its Income Assistance (IA) program and introduced the new Income Assistance for Seniors and Persons with Disabilities (IASPD) program as of July. At that point, IA earned income exemptions were increased. Earned income exemptions for IASPD are indicated in the table below.
• Nova Scotia increased earned income exemptions as of November. 
• Saskatchewan increased earned income exemptions in its Income Support program as of May.

Table A2: Earned income exemptions for adults in Welfare in Canada households, 2024

10. ETW/BFE refers to the “Expected to Work/Barriers to Full Employment” category of social assistance in Alberta. Under the ETW/BFE categories, if a dependant is attending school, their income is fully exempt. If a dependant is not in school, the first $350 of net earnings is exempt and a 25 per cent exemption applies thereafter. AISH refers to Alberta’s Assured Income for the Severely Handicapped program.

11. In British Columbia, Income and Disability Assistance recipients must be in receipt of assistance for at least one month before the earned income exemption amount applies. However, no wait period applies for people who have previously received Disability Assistance (i.e., returning PWDs) or for people who have received Income Assistance or Disability Assistance in at least one of the previous six calendar months (i.e., recent Income Assistance recipients who return to assistance, people who transfer from Income Assistance to Disability Assistance, and people without the PWD designation who transfer from Disability Assistance to Income Assistance due to a breakdown in their spousal relationship with a person with a disability).

12. EIA refers to Manitoba’s Employment and Income Assistance program and MSPD refers to the Manitoba Supports for Persons with Disabilities program.

13. In Manitoba, recipients of EIA must be in receipt of assistance for at least one month before the earned income exemption amount applies. MSPD applicants are eligible for their full base exemption after their categorical eligibility is established (prorated for the calendar year). Note that Manitoba also provides the Rewarding Work Allowance (RWA) to all employed adults without disabilities receiving EIA benefits, which is a payment of $100 for people working more than 80 hours or ten days in a month, or $50 for those working less. Employed people receiving EIA under Medical Barriers to Full-Employment (MBFE), as well as MSPD, receive similar benefits in the form of employment transportation and employment clothing benefits.

14. Note that those applying for MSPD who are not members of a prescribed class (see below) must first meet the financial eligibility requirements of EIA. Once their categorical eligibility is established, the full base exemption applies, as noted above, to the date that the Disability Impact Assessment form was received.

15. Members of the prescribed class for MSPD are those who have been receiving services from Manitoba’s Community Living disABILITY Services, were living in personal care homes, or were receiving CPP-D at the time of application.

16. Note that amounts are prorated based on the date of eligibility.

17. Exemption amounts are for New Brunswick’s Transitional Assistance and Extended Benefits programs.

18. Note that income from Employment Insurance and the Workers’ Safety and Compensation Commission are counted as earned income and therefore included in these exemption amounts. See the Unearned Income Exemptions section for more information.

19. In Nova Scotia, families already in receipt of assistance may also earn up to $3,000 per fiscal year through the Harvest Connection program without affecting their basic Income Assistance payment.

20. The higher amounts in each time period apply to people with disabilities if they participate in supported employment.

21. In Ontario, recipients of Ontario Works must be continuously in receipt of assistance for at least three months before the earned income exemption amount applies. As well, the earnings of, and amounts paid under a training program to, people attending full-time post-secondary school are exempt as income and assets.

22. In addition to earnings exemptions, ODSP provides a $100 Work-Related Benefit to each eligible adult family member in any month they receive earnings.

23. These exemption amounts apply to people with no limited capacity for employment or temporary limitations to employment in the Social Assistance program and to participants in the Aim for Employment Program, as well as people with severely limited capacity for employment in the Social Solidarity program. Aim for Employment Program participants may also receive a supplement of 20 per cent of any portion of their work income in excess of the applicable exemption amount.

24. SIS refers to the Saskatchewan Income Support program. SAID refers to the Saskatchewan Assured Income for Disability program. Income exemption amounts apply once ongoing eligibility has been determined.

25. In the Yukon, recipients must be in receipt of assistance for at least one month before the income exemption amounts apply.

26. Note that the basic income exemption of $100 for a single-person household and $150 for households with two or more people is applied to total income from both earned and unearned income.

27. Note that the income exemption rate reverts back to 50 per cent (where support is reduced by 50 cents per dollar) after 5 years, whether or not the person was in receipt of assistance.

Unearned Income

“Unearned income” includes sources of income that do not come from employment. Many sources of unearned income are specifically exempt from the needs test in many jurisdictions, while others result in a reduction in benefits.

Unearned income from some income support programs, such as the Canada Child Benefit and the GST/HST Credit, is typically exempt from the needs test. As well, exemptions are often made for income from sources such as payments from certain programs for people with disabilities or for foster children, payments from reparations programs, pain and suffering awards resulting from certain court cases or government settlements, or income from money that is borrowed or comes from grants.

Conversely, income from Employment Insurance (EI), the Canada Pension Plan (CPP) and Canada Pension Plan-Disability (CPP-D), or provincial and territorial workers’ compensation programs is typically not exempt. Although payments from these types of social insurance programs are important sources of income that households receiving social assistance may have paid into, they are typically unable to claim them without their social assistance eligibility or benefit levels being impacted. As well, in most jurisdictions, households applying for or receiving social assistance are required to “pursue” or “access” these benefits, if they are eligible, only to have their social assistance benefits reduced dollar for dollar.

Table A3 shows unearned income exemptions in effect in all provinces and territories in 2024 for payments from the following sources:

• Employment Insurance regular benefits
• Canada Pension Plan retirement benefits (CPP)
• Canada Pension Plan disability benefits (CPP-D)
• Quebec Pension Plan retirement and disability benefits (QPP/QPP-D)
• Provincial and territorial workers’ compensation wage replacement programs.

Amounts are monthly unless otherwise specified and apply to households that are applying for social assistance as well as households that are already receiving social assistance, unless otherwise stated. Specific exceptions are indicated in the footnotes.

As of 2024, four jurisdictions provided some level of exemption for these payments:

• British Columbia provided a partial exemption for income from some forms of workers’ compensation payments.
• New Brunswick provided a partial exemption for income from CPP/CPP-D and QPP/QPP-D, for recipients only.
• In July 2024, the Northwest Territories revised its Income Assistance (IA) program and introduced the new Income Assistance for Seniors and Persons with Disabilities (IASPD) program. At that point, in the IA program, some of these income sources became treated as earned income and unearned income exemptions were changed from an annual to a monthly amount. As well, CPP-D benefits were made fully exempt in the IASPD program.
• The Yukon provided a partial exemption for income from the sources listed above based on its total exemption levels for both earned and unearned income.

Table A3: Exemptions for EI/CPP/CPP-D/workers’ compensation (as “unearned income”) for Welfare in Canada households, 2024

28. ETW/BFE refers to the “Expected to Work/Barriers to Full Employment” category of social assistance. AISH refers to Alberta’s Assured Income for the Severely Handicapped program.

29. Note the following exemptions in the AISH program: The CPP children’s benefit and CPP orphan’s benefit received on behalf of a dependent child are fully exempt. The CPP children’s benefit and CPP orphan’s benefit for AISH clients 18 to 25 are partially exempt for the cohabiting partner. The CPP death benefit is fully exempt. CPP-D, CPP-retirement, and CPP survivor’s benefits are non-exempt for the client but partially exempt for a cohabiting partner. Employment Insurance benefits including maternity and work share benefits are non-exempt for the client but partially exempt for the cohabiting partner. Workers Compensation Board of Alberta (WCBA) wage replacement benefits are non-exempt for the client but partially exempt for a cohabiting partner. WCBA supplemental payments, payments made under the Special Payment Act, and non-economic loss payments are fully exempt.

30. In British Columbia, Disability Assistance recipients must be in receipt of assistance for at least one month before the earned income exemption amount applies. However, no wait period applies for people who have previously received Disability Assistance (i.e., returning PWDs) or for people who have received Income Assistance in at least one of the previous six calendar months (i.e., people who transfer from Income Assistance to Disability Assistance).

31. Note that the CPP surviving child’s benefit, CPP orphan’s benefit, CPP disabled contributor’s child benefit, and EI maternity or parental benefits, and EI special benefits for parents of critically ill children are exempt.

32. Note that the CPP child disability benefit, CPP orphan’s benefit, and QPP child pension are fully exempt.

33. Note that all CPP children’s benefits, including the surviving child’s benefit and the disabled contributor’s child benefit, are fully exempt.

34. Note that the CPP surviving child’s benefit is fully exempt in Income Assistance, both before and after July 1, 2024.

35. Note that the CPP orphan’s benefit, the CPP disabled contributor’s child benefit, the QPP orphan’s pension, and the QPP pension for a disabled person’s child are fully exempt.

36. Note that the CPP orphan’s benefit, the CPP disabled contributor’s child benefit, the QPP orphan’s pension, and the QPP pension for a disabled person’s child are fully exempt.

37. Note that maternity, paternity, parental, adoption, or compassionate care benefits received from these programs are treated as employment income and the exemptions noted in Table A2 apply.

38. Note that the Canada Pension Plan Disabled Contributor’s Child (CPP-DCC) benefit and surviving child’s benefit are fully exempt for recipients of the Saskatchewan Assured Income for Disability (SAID) program, whether they are paid to the parent on behalf of the child or paid directly to the child.