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What are earnings exemptions?
In order to help people get back to work as quickly as
possible,
Ontario Works
has earnings exemptions that ensure that people are better
off working than they are on welfare.
Ontario Works
earnings exemptions mean that earned income does not
reduce financial assistance, dollar for dollar.
Earnings exemptions help
participants make the transition to employment and
self-sufficiency.
*NEW*
Starting August 1, 2005,
the current basic and percentage exemption rates on
employment income will be replaced by a straight 50 per
cent exemption rate.
This means that no matter
how much someone earns, only half of the employment income
will be deducted from the Ontario Works payments. For
example, if the net income from employment is $800, half
of that amount, $400 would be deducted from the social
assistance payment.
There are also three new
employment supports available as of August 1, 2005 to help
make the transition back to work:
1. If an Ontario Works
recipient starts full-time employment, they may be
eligible for a new full-time employment benefit of up to
$500 to help cover their work-related expenses.
2. The maximum deduction
for unlicensed child care costs will increase to $600 per
month per child.
3. If someone leaves
Ontario Works for employment, they will be able to keep
their health benefits (including the drug card) for up to
one year or until they get health benefits from their
employer, whichever comes first.
If they are currently
reporting employment income, the new 50 per cent exemption
rate may affect the amount of social assistance they
receive starting with the August 1, 2005 social assistance
payment.
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