Payments for the Canada Workers Benefit arriving sooner—find out why

The CRA is now taking a different approach: It will make three advance payments—the first one on July 28, 2023—to anyone who received the CWB in 2022, no application needed. Together, these quarterly payments, called the Advanced Canada Workers Benefit (ACWB), will equal 50% of the CWB amount eligible Canadians received based on their income for the 2022 tax year. With this change in place, those receiving the payments won’t have to wait until 2024 for the 2023 CWB money.

“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,” Chrystia Freeland, deputy prime minister and finance minister, stated in a government news release issued July 27. “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 legislation to implement these automatic advance CWB payments, Bill C-47, received royal assent on June 22, 2023. The bill also included several other commitments from the federal 2023 budget, such as the implementation of the Canadian Dental Care Plan (CDCP), increasing the withdrawal limits for registered education savings plans (RESPs), and cracking down on predatory lending and house flipping. (The federal grocery rebate issued on July 5 was also part of the 2023 federal budget.)

What is the Canada Workers Benefit?

The Canada Workers Benefit (CWB) is a refundable tax credit, indexed to inflation each year, that helps individuals and families who are working and earning a low income. Eligibility is determined by the CRA based on your previous year’s tax return.

In 2023, the maximum adjusted net income to be eligible for the CWB (the point where the entitlement is reduced to zero) is $35,094 for single individuals without kids, and $45,934 for families, including single parents. For couples with two earners, the secondary earner exemption (introduced in the government’s 2021 budget) allows the lower-income spouse or common-law partner to earn up to $15,239 in 2023 without contributing to the reduction of the CWB entitlement. Dual-earner couples could keep receiving the benefit with family income up to $61,172. (See figures for the 2022 tax year.)

How much is the Canada Workers Benefit?

For 2023–24, the Canada Workers Benefit will provide up to $1,518 in total for eligible single workers and up to $2,616 total for an eligible family (6.3% more than 2022 entitlements), according to the government’s news release. The CWB amount gradually decreases with higher adjusted net income.

The CWB disability supplement for the 2023 tax year is $784. If you’re eligible, you’ll receive half of this amount through automatic advance payment in 2023. (See “Canada Workers Benefit eligibility,” below, for details.)

When are advance Canada Workers Benefit payments coming?

The first advance CWB payment was sent to recipients on July 28, 2023. The remaining two advance payments are coming on Oct. 12, 2023, and Jan. 12, 2024, and you will receive one more payment after you file your 2023 tax return. 

If you received the CWB in 2022, you don’t need to apply for the advance payments—you’ll receive them automatically. If you also qualify for the CWB disability supplement (more on that below), you’ll receive 50% of that as part of the advance payments, as well.

If you don’t receive a CWB payment on the dates above, wait 10 business days before you contact the CRA, according to its website.

Canada Workers Benefit eligibility

The CWB has two components: the basic amount and the disability supplement. 

CWB basic amount

To be eligible for the CWB basic amount, you must meet all of the following conditions, according to the CRA: 

• Earn working income and your net income is below the net income level set for your province or territory of residence
• Are a resident of Canada throughout the year
• Are 19 years of age or older on December 31, or you live with your spouse or common-law partner or your child (under age 19)

Who does not qualify for the CWB?

Certain individuals aren’t eligible for the CWB, including students enrolled full-time at a designated educational institution for more than 13 weeks in the year unless, on December 31, they have an eligible dependant; people confined to a prison or similar institution for a period 90 days or more during the year; and those who do not have to pay tax in Canada because they are an officer or servant of another country, such as a diplomat, or a family member or employee of that person.

CWB disability supplement

You may be eligible for the CWB disability supplement if you meet all of these conditions:

• You are eligible for the disability tax credit and have an approved Form T2201, Disability Tax Credit Certificate, on file with the CRA.
• Your net income is less than the net income level in the province or territory where you live.

How is the CWB amount calculated?

Each year, the CRA uses these pieces of information to calculate your CWB:

• Marital status and if you have an eligible spouse (lives with you as your spouse or common-law partner on December 31, and is a resident of Canada throughout the year)
• Province or territory of residence
• Earned working income
• Adjusted family net income
• Eligible dependant
• Eligibility for the disability tax credit

To estimate how much you’ll receive for the CWB and other government benefits, you can use the CRA’s child and family benefits calculator.

If you don’t currently receive the CWB and think you may be eligible, you can claim the benefit when you file your next income tax return. For more on filing taxes, check out the MoneySense income tax guide.

More on budgeting:

• How high will interest rates go in Canada? Could they reach double digits?
• Spending money on experiences—be honest, can you really afford it?
• What are climate action incentive payments?
• The cost of the average grocery bill in Canada—and how to lower yours
• Earning, saving and spending money in Canada: A guide for new immigrants

About Jaclyn Law

Jaclyn Law is MoneySense’s managing editor. She has worked in Canadian media for over 20 years, including editor roles at Chatelaine and Abilities. Jaclyn completed the Canadian Securities Course in 2022.

Linkedin Twitter