What disabled Canadians should know when starting a new job

According to the most recent Statistics Canada data, disabled Canadians are more than 20% less likely to be employed. That same report, citing data from 2015, found that employed disabled Canadians who had a mild disability earned almost $3,000 less in annual income than their non-disabled peers, while a more severe disability put that gap at almost $8,000. Statistics Canada is currently collecting data for the next disability survey. It would not be a surprise, given how the pandemic has disproportionately affected disabled people, to see that gap broaden. 

In addition to the income disparity, being disabled is more expensive than not being disabled. There’s even a rather blunt term for it: the “crip tax.” Whether that’s having to buy pre-packaged food, needing to use a taxi rather than drive, or purchasing medical equipment or assistive devices, these hidden costs add up. 

Some Canadian organizations have started disability-focused employment initiatives (like the CBC’s Abilicrew program or the Government of Canada’s Entrepreneurs with Disabilities Program), and the government raises awareness during National Disability Employment Awareness Month every October.

But entering the workforce—or getting a better-paying job—isn’t always simple for disabled workers. There are benefit programs to consider, tax credits to apply for (if you haven’t already), and savings plans that can be contributed to. Here’s what disabled people transitioning into new or better employment need to look at and prepare for in order to have the best chance of success.  

Understand the impacts on income assistance

To understand how to shift into a position that pays you a living wage or better, you have to understand your relationship to your province’s income assistance programs. While these options are meant to create financial stability—a mission they often fail to accomplish—they have asset and income limits. These limits mean clawbacks can occur even before you are ready to let go of those supports.

For example, in British Columbia, your extended healthcare coverage is tied to your income; hitting the income limit can result in losing your benefits. In Saskatchewan, moving off of the province’s Saskatchewan Assured Income for Disability (SAID) program could complicate your subsidized home care. As with everything about healthcare, the situation will vary based on the province or territory in which you live.

In material terms, that means budgeting to make sure that the role you’re entering into will at least fulfil your minimum financial needs. 

As disabled Canadians know, while income assistance programs like the Ontario Disability Support Program (ODSP) or Alberta’s unfortunately named Assured Income for the Severely Handicapped (AISH) are theoretically about providing financial support that allows for a life with some comfort, it’s incredibly difficult to become enrolled again if you leave them. That exit can be in the natural order of things—you get a job that pays enough, for example—or it can be due to a clerical error that you have to fight like hell to resolve. 

In short, you need to budget out your costs and consider the impacts on your benefits before you enter into an employment agreement.

You should also consider your long-term goals and plans. If you are just entering the workforce, your first job may not pay very much, but it may eventually lead to a better-paying one. Financially, it’s really important to consider what the earning potential of first and future jobs might be versus what you are receiving on income assistance. When making this decision, keep in mind the level of stress that can come from being inside and outside of government programs. Make sure you know what you are gaining and losing from this first job.

Contribute to a registered disability savings plan 

If you haven’t already, open a registered disability savings plan (RDSP).

RDSPs are intended to help disabled people create a savings plan for the future, and they can be opened at a variety of financial institutions. Contributions are not tax-deductible, but grants and bonds are available through a government-funded matching program. The sizes of the grants are based on income and capped at $3,500 per year in 2022. Disabled Canadians with a low or modest income—a number the government generally pegs at $35,000 a year for individuals—are eligible for a $1,000 bond annually. 

One of the best ways to integrate the RDSP into your financial planning is to set up an automatic transfer to your account each month, if your budget allows.

Not everyone qualifies for an RDSP. You must first qualify for the disability tax credit (DTC). If you’re not sure if you meet the eligibility criteria, you may want to speak to a representative of the Canada Revenue Agency (CRA) or a financial advisor with knowledge of the program.

Access the disability tax credit 

The federal DTC provides a non-refundable income tax deduction for disabled people, worth $8,662 in 2022. If you are under the age of 17, you may be eligible for a supplement of $5,053, bringing your total deduction to $13,715.

The program serves a second function that is contested by many disability activists. As mentioned above, you have to have been approved for the DTC—a lengthy process in itself—in order to qualify for an RDSP.

While the government expanded eligibility for the DTC in 2022, widening what activities could be considered as hampering your day-to-day life, far too many disabled people are still falling through the cracks. For example, the changes expanded access to Type 1 diabetics and added to the list of mental function losses that could make you eligible. But individuals who are unhoused or in an abusive living situation may not be able to complete the required paperwork. 

In many ways, the DTC was created to accommodate those with disabilities who are, for lack of a better term, an open-and-shut case. The proposed federal disability benefit could run into the same limitations if eligibility is so firmly rooted in having a diagnosis. 

The point is that you should take advantage of the DTC, as well as the RDSP—if you can access them. If you are not eligible, other programs may still be available to you as an un- or under-diagnosed disabled person. 

Embrace this moment in your life

If you’re just entering into employment as a disabled Canadian, then you have a lot to think about. Be sure to connect with support organizations, such as the local branch of Spinal Cord Injury Canada (formerly the Canadian Paraplegic Association) or more activist-minded groups like the Disability Justice Network of Ontario. Create a budget knowing your new income may impact your access to benefits, and consider the full range of programs and tax credits available to you. And take a moment to appreciate this new and exciting phase of your life. 

Read more about careers:

• How to set financial goals that are realistic and achievable
• The secret to planning for financial negotiations
• 10 high-paying jobs that don’t require a degree

• How much should I put in my RDSP?