Canada Workers Benefit (CWB) — Eligibility & Process

The Canadian government will pay you up to $2,739 annually if you're working and earning a low income. The Canada Workers Benefit (CWB) is a refundable tax credit that 2.6 million Canadians received in 2022, totaling $3.3 billion. Yet many eligible workers miss out. In this guide, we’ll explore:

What is CWB
How phase-in/phase-out works
How to claim and get advance payments
Maximum amount and eligibility requirements

Understanding this credit could mean an extra $1,590 to $2,739 annually, plus up to 50% arrives early as advance payments.

What is the Canada Workers Benefit?

The CWB provides financial relief while encouraging workforce participation. As the OECD notes, in-work benefits like the CWB "redistribute to low-income groups while also creating additional work incentives."

The CWB replaced the Working Income Tax Benefit in 2018 with increased maximum payments and raised income thresholds.

The 2021 federal budget brought further improvements, extending eligibility to many full-time minimum wage workers and introducing the secondary earner exemption (worth $15,955 in 2024). The CWB has two components:

Basic amount available to all eligible workers
Disability supplement (up to $821) for workers with an approved Disability Tax Credit (Form T2201)

Who qualifies for the Canada Workers Benefit?

Meeting the eligibility criteria determines whether you can access this credit. You need these conditions by December 31st:

19 or older (or under 19 if living with a child or spouse)
Canadian resident for tax purposes throughout the year
Working income from employment or self-employment

Your working income includes wages, salaries, tips, and net self-employment earnings (but excludes investment income, pension payments, or social assistance). Social assistance does count in your adjusted net income for phase-out, which can reduce your benefit. You'll generally need a working income of over $3,000 to receive a basic CWB amount (though the disability supplement starts at $1,150).

Who cannot receive the CWB?

You're disqualified if you're a full-time student enrolled for over 13 weeks yearly (unless you have an eligible dependant), incarcerated for 90+ days, or a tax-exempt person like a diplomat.

Qualifying for the disability supplement

You must have an approved Disability Tax Credit certificate (Form T2201) on file with the CRA. For the supplement, your working income only needs to exceed $1,150. If both you and your spouse qualify for the DTC, you each file a separate Schedule 6 for your disability supplements.

How much can you receive from the Canada Workers Benefit?

The amount depends on your working income, household income, family status, and location. Maximum amounts for 2024 (most provinces):

Singles can receive up to $1,590
Families can receive up to $2,739
Disability supplement can be up to $821 per eligible adult

For singles, the basic amount phases out completely above $36,749. For families, it disappears above $48,093. Based on unofficial estimates, 2025 maximums may reach $1,633 (singles) and $2,813 (families).

How does the income phase-in and phase-out work?

The CWB uses an income-tested model. Your benefit grows as you earn more (up to a point), plateaus at the maximum, then gradually decreases.

What is the benefit structure?

Picture a trapezoid shape:

Start at zero benefit if earning under $3,000
Benefit climbs steadily as working income increases (phase-in)
Benefit stays constant at maximum for a range (plateau)
Benefit declines once income reaches the phase-out threshold
Eventually reaches zero at higher income

You gain 27 cents in CWB benefit for every additional dollar during phase-in. You lose 15 cents for every additional dollar during phase-out (the slower reduction rate means you keep more of your benefit as income grows).

Research from the C.D. Howe Institute notes that a lower-earning parent might lose more than 80 cents of an extra dollar after taxes and benefit withdrawals, which is why the CWB's partial phase-out rate matters.

Phase-out thresholds and income limits

The phase-out begins when your adjusted net income reaches these levels for 2024:

Singles — reduction starts above $26,149; benefit ends above $36,749
Families — reduction starts above $29,833; benefit ends above $48,093

For the disability supplement, singles see a reduction above $36,748 (eliminated above $42,222). Families start losing the supplement above $48,091.

The secondary earner exemption

If you're part of a working couple, the spouse with the lower working income can exclude up to $15,955 (2024 amount) when calculating household adjusted net income for phase-out purposes. The exemption means the lower-earning spouse's income (up to $15,955) doesn't count against you, creating a stronger financial incentive for both partners to work.

How do you claim the Canada Workers Benefit?

Getting your benefit requires filing an income tax return. Statistics Canada reports that $212 million in benefits went unclaimed by wage earners in 2021, highlighting why understanding how to claim matters.

Filing your claim with Schedule 6

Complete Schedule 6 (Canada Workers Benefit) alongside your tax forms. The schedule walks you through the calculation, then you enter the amount on line 45300. Tax software like TurboTax or UFile automatically generates Schedule 6. For paper filers, download it from the CRA website.

Starting in 2019, the CRA automatically assesses your eligibility when processing your return. Even if you forget to claim it, the CRA may add the credit to your refund.

Getting advance payments (ACWB)

You can get up to 50% of your estimated benefit early through the Advanced Canada Workers Benefit. The CRA sends three equal payments throughout the year. For 2025, the scheduled dates are January 10, July 11, and October 10 (payment dates vary by year and shift if they fall on weekends or holidays).

You don't need to apply separately. To continue receiving advance payments, file your tax return by November 1. The CRA uses your previous year's return to estimate your benefit, then reconciles when you file. If you received more in advance than your final benefit, you'll owe the difference. If you received less, you'll get the remainder with your refund.

Special claiming rules for couples

When both partners are eligible, only one person claims the basic CWB amount. If one has the DTC, that person claims both the basic amount and disability supplement.

If both have the DTC, one claims the basic amount while you each claim your own disability supplement on separate Schedule 6 forms. Whoever claims the basic CWB reports the ACWB amounts (shown on RC210 slips) for both spouses.

References used in this article

C.D. Howe Institute. (2020). Softening the Bite
OECD. (2009). A Good Time for Making Work Pay? Taking Stock of In-Work Benefits.
Canada Revenue Agency. (2024). Canada Workers Benefit (CWB). Government of Canada.
Canada Revenue Agency. (2024). Schedule 6 - Canada Workers Benefit. Government of Canada.
Statistics Canada. (2025). The filing patterns of wage earners and the receipt of benefits.
Department of Finance Canada. (2021). Budget 2021

Frequently asked questions

Here are some commonly asked questions about Canadian workers’ benefits:

Can I get the CWB if I'm self-employed?

Yes. Use your net self-employment income (after expenses) as working income. You'll need a working income of over $3,000 to receive a positive basic amount.

Social assistance doesn't count toward the working income minimum (only employment and self-employment count). However, it does get included in your adjusted net income for phase-out, which can reduce your benefit.

Do I need to apply separately for advance payments?

No. The CRA automatically sends them if you filed your previous year's return. Just file by November 1 to continue receiving them.

What if my income changes significantly during the year?

The CRA bases advance payments on your previous year's return. If your income dropped, you'll receive less in advance (you'll get the rest when you file). If it increased, you might receive too much and owe the difference back.

How does the CWB interact with provincial benefits?

The CWB is federal and separate from provincial programs. You can receive both simultaneously, though some provincial programs may count the CWB as income.

When will I receive my CWB payment after filing?

If you file electronically, expect your refund within two weeks. Paper returns take eight weeks per CRA service standards. Advance payments arrive automatically on scheduled dates if you filed by November 1.