If you have a job but still struggle to pay your utility bills, you might assume that Ontario Works is only for people who are completely unemployed. Many people work part-time, run small businesses, or have seasonal jobs and still qualify for OW financial assistance.
The fact is: you can receive Ontario Works While Working and earning at the same time. The program is designed to encourage work. Ontario Works wants you to move toward financial independence, and it uses a generous earnings exemption to make sure you are better off working than staying home.
This article explains exactly how working and earning affect your Ontario Works benefits, what you need to report, and how to keep more of what you earn.
Basic Rule of Ontario Works While Working
It is not a must to be unemployed to receive the Ontario Works support. As long as you meet the standard eligibility needs for the program, you can have a job. The amount of financial assistance you receive will be released based on your earnings. You’d be almost better off with the job than without it.
The key point is that you and the other adults in your family must participate in approved employment activities. If you are already working, and your job counts as your primary activity. You are already doing what the program wants you to do.
Your caseworker will work with you to develop an individual plan focused on improving your skills and helping you find and keep a job. If you already have work, the plan might include
- Looking for more hours
- Upgrading your skills
- Finding better job.
But you will never be told to quit your existing job.
The 3-Month Rule for OW While Working – Earnings Exemption Starts
The full earnings exemption does not start on your first day of receiving Ontario Works while working. You must be on the program for 3 consecutive months before the earnings exemption starts.
After you have been on OW while working for 3 months in a row, you can earn up to $200/month without any reduction to your OW assistance. For every dollar you earn above that $200, Ontario Works deducts only 50 cents from your monthly payment.
| Earnings Rule After 3 Consecutive Months Working on OW | Treatment |
| First $200 earned each month | Fully exempt (no reduction to OW) |
| Earnings above $200 | Ontario Works deducts 50 cents for every extra $1 earned |
| Example | If you earn $300 above the exemption, OW is reduced by $150 |
If you have not yet reached the 3-month limit, the rules are different. You should speak with your caseworker about how your earnings are treated during the first three months. But once you pass that threshold, the generous exemption reduces from the OW Monthly payment.
How Your Earnings Are Calculated by OW While Working
When you report your job income, you need to provide gross and net pay to your caseworker: your gross pay and your net pay.
| Pay Type | Description |
| Gross pay | Income before any deductions. That includes income tax, Employment Insurance contributions, Canada Pension Plan contributions, and any other deductions like union dues or garnishments. |
| Net pay | Take-home Income after deductions that matters most for calculating your Ontario Works benefit. You also need to include any tips or gratuities you receive in your net pay amount. |
If there are no deductions on your pay stub, your gross pay and net pay will be the same. That is common for casual or very part-time jobs.
Your caseworker uses your net monthly earnings to calculate how much your Ontario Works payment will be reduced. The formula is straightforward.
- The first $200 is fully exempt.
- Of the remaining amount, half is exempt.
- Half is countable income that reduces your OW payment dollar for dollar.
Example
| Step | Calculation | Amount |
| Net monthly earnings | $900 | |
| First $200 exempt | $900 – $200 | $700 remaining |
| 50% of remaining exempt | $700 ÷ 2 | $350 exempt |
| Countable income | Remaining 50% | $350 |
| Maximum OW amount | $733 | |
| OW payment after deduction | $733 – $350 | $383 |
| Total monthly income | $900 wages + $383 OW | $1,283 |
| Better off working | $1,283 – $733 | $550 |
This is why the program is structured the way it is. Working always puts more money in your pocket than not working.
What if you start earning more?
If you are on Ontario Works while working, the same formula continues to apply, no matter how much you earn. Let us look at a higher earning scenario.
| Step | Calculation | Amount |
| Net monthly earnings | $1,500 | |
| First $200 exempt | $1,500 – $200 | $1,300 remaining |
| 50% of remaining exempt | $1,300 ÷ 2 | $650 exempt |
| Countable income | Remaining 50% | $650 |
| Maximum OW amount | $733 | |
| OW payment after deduction | $733 – $650 | $83 |
| Total monthly income | $1,500 wages + $83 OW | $1,583 |
| Income without working | $733 | |
| Better off working | $1,583 – $733 | $850 |
If your countable income ever equals or exceeds $733, your OW payment becomes zero for that month. You are not kicked off the program. You simply do not need assistance that month. If your earnings go down the following month, your OW payment will return.
Business and Self-Employment Income
The rules of Ontario Works while working in your business are slightly different, but follow the same basic principle. Your profit is what matters, not your total revenue. Profit is calculated as your gross income from the business is subtracted from approved business expenses. You cannot claim all the expenses that income tax allows.
What you cannot claim for
- Wages for employees
- Gifts and entertainment
- Business losses
- Depreciation on business assets
- Conferences.
What you can claim for
- Business Supplies
- Tools and equipment
- Bookkeeping & Legal fees
- Advertising and business cards
- Rent for a business place (home is not included)
- Only rent for a separate business location counts.
Once your profit is calculated, the same $200 plus 50 percent exemption applies. After you have been on OW for three months, the first $200 of monthly profit is fully exempt. Half of the profit above $200 is also exempt. The other half reduces your OW payment.
Example of Jane, who runs own business
| Step | Calculation | Amount |
| Gross monthly income | $800 | |
| Approved business expenses | -$100 | |
| Net profit | $800 – $100 | $700 |
| First $200 exempt | $700 – $200 | $500 remaining |
| 50% of remaining exempt | $500 ÷ 2 | $250 exempt |
| Countable income | Remaining 50% | $250 |
| Previous OW amount | $733 | |
| New OW payment | $733 – $250 | $483 |
| Total monthly income | $700 profit + $483 OW | $1,183 |
Reporting Your Earnings Each Month
You cannot simply earn money as a caseworker of Ontario Works while working. Reporting your earnings is a mandatory condition of receiving support. You must report every month, even if you earned nothing at all.
- You can sign in to MyBenefits online.
- You can call the Interactive Voice Response system by phone.
- You can fill out the Statement of Income form that comes with your OW cheque or direct deposit statement each month.
When you report ontario works while working, you need to provide your gross pay and net pay. You also need to submit copies of your pay stubs and receipts. You can upload them through MyBenefits. Attach them to your Statement of Income, or simply keep them in case your caseworker asks to see them later.
When to Report?
The earned money in one reporting period is used to calculate your Ontario Works payment for the following month. For example, if you earned money between September 16 and October 15, you report it by October 16. That information determines your November OW Support payment.
If you miss this deadline, your payments and benefits may hold or stop. Because your caseworker cannot calculate benefit amount. Once you send your completed report, your payments can start again if you still qualify.
Child Care Deductions for Working Parents
If you have children and you are on Ontario Works while working, the OW allows you to claim child care costs as deductions from your earnings.
You can claim the full cost of licensed child care from a provider licensed by the province. That includes licensed daycare centres. You can also claim up to $600 per child for unlicensed or informal child care, such as nannies or after-school programs. The full cost of before and after-school programs offered as part of full-day kindergarten can also be claimed.
There are two situations where you cannot claim child care costs.
- If the caregiver is a family member who is also receiving ow support with you.
- If you can get child care funding from another source.
These deductions reduce your countable income, which means you keep more of your Ontario Works payment.
Special Rules for Students on Ontario Works While Working
If you are enrolled full-time in high school or postsecondary school, the rules are even more simple. All of your earnings are fully exempt, means none of your job income reduces your Ontario Works payment for students.
This is applicable, as long as you have been geeting OW while working for 3 months in a row and you continue to meet the eligibility requirements. You can work as much as you want and earn as much as you want. Your OW payment remains the same.
If you are attending high school, your summer earnings are also exempt as long as you intend to return to school in the fall.
What for postsecondary students
The exemption applies to the 4 months before your studies begin. This is called the pre-study period. For example, if your school year runs from September to April, your pre-study period is May through August. Your earnings from May through April are all exempt.
You still must report your earnings each month, even though they do not reduce your payment. Your caseworker needs to know that you are working and studying.
What About Your Children’s on OW while working?
If you have children under 18 who are living with you and on Ontario Works while working, their earnings are fully exempt. You do not need to report them, and they do not affect your Ontario Works payment in any way.
- If your children are 18 or older, their earnings are treated like any other adult income.
- They must be reported, and they may reduce your benefit unit’s OW payment.
- However, if an adult child is enrolled full-time in high school or postsecondary school, their earnings may be fully exempt.
- Speak with your caseworker about your specific situation.
What to Do When You Stop Working
If you lose your job or your training program ends, you must tell your caseworker right away. You still need to fill out the Statement of Income form that month. On that form, you will indicate when your job ended and provide the name of your employer or training program.
You need to process verification, providing a copy of your Record of Employment or a letter from your employer.
If you have stopped payment from Ontario Works while working, you may be eligible for Employment Insurance. You should visit the federal government’s website at Canada.ca/EI to find out more and apply. Your caseworker can also provide guidance.
Leaving Ontario Works for a Job
The goal of Ontario Works is to help you become financially independent so you no longer need assistance. When you get a paying job that provides enough income to support yourself, you will leave the program. But even after you leave, some benefits may continue.
Discuss to your caseworker about the Extended Health Benefit. This program can help you and your family pay for health costs if your expenses are high or if your employer does not provide comparable health benefits. You may also get support with job-related expenses, such as safety boots.
If you leave Ontario Works to participate in the Better Jobs Ontario program, your health benefits may continue as well. Always discuss your options with your caseworker before leaving the program.
Summary
Understanding Ontario Works While Working has been made so simple with this article. You can absolutely work and earn money while receiving OW Support. The program is designed to make sure you are better off working than staying home. After three months on OW, the first $200 of your monthly earnings is fully exempt, and half of the remaining earnings is also exempt. You keep most of what you earn, and Ontario Works tops up the rest.
If you run your own business, the same principle applies to your profits. If you have children, you can deduct child care costs. If you are a student, all of your earnings may be fully exempt. Report your earnings every month, even if you earned nothing. Report on time. Keep your pay stubs. Tell your caseworker if you stop working. Working while on Ontario Works is not only allowed. It is encouraged. The path to financial independence starts with a job, and Ontario Works is there to support you along the way.
Before applying for OW Support Payment, check your eligibility on our Ontario Works Eligibility Calculator. Just answer some questions and check if you qualify instead of reading multiple documents.
