Low-income workers to receive first enhanced Canada Workers Benefit payments
July 27, 2023 - Ottawa, Ontario - Department of Finance Canada
Starting tomorrow, millions of low- and modest-income Canadian workers will receive their first automatic advance payments of the newly enhanced Canada Workers Benefit, announced the Deputy Prime Minister and Minister of Finance, Chrystia Freeland.
Enhancements to the Canada Workers Benefit, first announced in 2021, expanded eligibility to an additional one million workers—and now, support from the enhanced Canada Workers Benefit will come sooner to those who need it most. Prior to the recent passage of Bill C-47, people needed to wait until they filed their taxes to receive this support, which helps them pay for day-to-day essentials like groceries and rent.
To top-up the incomes of our lowest-paid—and often most essential—workers, the Canada Workers Benefit will provide up to $2,616 total for an eligible family, and $1,518 total for eligible single workers, split between three advance payments this fiscal year (in July 2023, October 2023, and January 2024), and a final payment after filing their 2023 tax return.
Low- and modest-income Canadian workers who received the Canada Workers Benefit in 2022 will automatically receive their advance payments from the Canada Revenue Agency, with no need to apply.
“The Canada Workers Benefit tops-up the income of up to 4.2 million hardworking Canadians—because no one working full-time should be struggling to put food on the table or to pay their rent. With the first quarterly Canada Workers Benefit payments going out tomorrow, we’re delivering important support to some of our lowest-paid and often most essential workers at a time when they need it most.”
- The Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance
As of July 2023, inflation in Canada is down to 2.8 per cent—back within the Bank of Canada’s 1 to 3 per cent target range. This is the lowest inflation has been in more than two years, down from a high of 8.1 per cent in June 2022, and inflation in Canada is lower than in every other G7 country.
In Budget 2021, the government significantly expanded eligibility for the Canada Workers Benefit to support an additional one million Canadian workers.
The 2022 Fall Economic Statement further enhanced the Canada Workers Benefit by introducing automatic advance payments, to put money in the pockets of Canada’s lowest-paid—and often most essential workers—faster.
- Legislation to implement automatic advance Canada Workers Benefit payments, Bill C-47, the Budget Implementation Act, 2023, received Royal Assent on June 22, 2023.
The Canada Workers Benefit is a refundable tax credit that tops-up the earnings of low- and modest-income workers, and is indexed to inflation each year to help keep up with the cost of living.
Automatic advance payments represent a minimum entitlement for the year, which will not decrease even if someone’s income increases compared to the previous year.
Automatic advance payment amounts are based on income reported in the previous year’s tax return, replacing the previous application-based advance payment option, which was phased out as of January 1, 2023. There is no need to apply to receive the Canada Workers Benefit.
- A single worker earning $25,000 per year received $1,200 through the Canada Workers Benefit for 2022. With the new advance payments, they are entitled to three quarterly advance payments of $200—in July 2023, October 2023, and January 2024. They will receive a final $600 payment after filing their 2023 taxes in early 2024.
The new automatic advance Canada Workers Benefit payments are in addition to other benefits and targeted inflation relief measures to make life more affordable for Canadians who need it most. As a result of enhancements to the Canada Workers Benefit, reduced child care costs, the Canada Child Benefit, the Canada Dental Benefit, the Grocery Rebate, the Pollution Pricing Rebate, and tax relief from the increased Basic Personal Amount:
- A single parent with one child in Newfoundland and Labrador, with income of $40,000 in 2023, could receive $7,300 in benefits.
- A single person without children in Alberta earning $23,000 in 2023 could receive $2,200 in benefits.
- A family of four in Ontario with two working parents earning $39,000 in 2023 could receive $8,700 in benefits.
- A family of four in Nova Scotia with two working parents earning $57,000 in 2023 could receive $8,100 in benefits.
Media may contact:
Press Secretary and Senior Communications Advisor
Office of the Deputy Prime Minister and Minister of Finance
Department of Finance Canada
File your 2022 tax return to apply for the Canada Workers Benefit
Low-income workers will receive advanced payments of the Canada Workers Benefit in July 2023, October 2023 and January 2024. You must claim the benefit on your 2022 tax return. For more information on who is eligible, how much you can get and how to apply refer to: Canada Workers Benefit.
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