The Canada Workers Benefit (CWB) is a refundable tax credit designed to support low-income workers and families across Canada. In 2025, the government is enhancing this benefit to provide more timely financial assistance through the Advanced Canada Workers Benefit (ACWB). This guide will walk you through what these benefits are, who qualifies, how to apply, and what the payment schedules look like.
What Is the Canada Workers Benefit?
The Canada Workers Benefit is a financial aid program aimed at helping low-income individuals and families who are actively participating in the workforce. It consists of two main components:
Basic CWB: Provides financial support based on income and family status.
Disability Supplement: Offers additional assistance to eligible individuals with disabilities.
In 2025, the maximum basic benefit amounts are:
Single individuals: Up to $1,633.
Families: Up to $2,813.
For the disability supplement:
Single individuals: Up to $843.
Families: Up to $843.
These amounts are subject to phase-out based on income thresholds. For single individuals with no children, the benefit begins to phase out at an adjusted net income of $26,855 and ends at $37,474. For families, the phase-out starts at $30,639 and ends at $49,391.
Who Is Eligible for the Canada Workers Benefit?
To qualify for the Canada Workers Benefit, you must meet the following criteria:
Age: Be at least 19 years old on December 31, or live with a spouse, common-law partner, or child.
Income: Earn at least $3,000 in working income.
Residency: Be a resident of Canada throughout the year.
You are not eligible if:
You were confined to prison during the year.
You are a full-time student enrolled in a designated educational institution for more than 13 weeks during the year, unless you have a dependent on December 31.
You do not have to pay tax in Canada because you are an officer or servant of another country, such as a diplomat, or you are a family member or employee of such a person.
What Is the Advanced Canada Workers Benefit?
The Advanced Canada Workers Benefit (ACWB) is an initiative that allows eligible individuals to receive up to 50% of their estimated CWB entitlement in advance, distributed over three quarterly payments. This program aims to provide timely financial support throughout the year, helping recipients manage their finances more effectively.
In 2025, the ACWB payment schedule is as follows:
First Payment: January 10, 2025
Second Payment: July 11, 2025
Third Payment: October 10, 2025
These payments are based on the information provided in your 2024 tax return. If you received ACWB payments in 2024, you will automatically qualify for the 2025 payments without the need for reapplication.
How to Apply for the Canada Workers Benefit
To claim the Canada Workers Benefit, you need to:
File your income tax return: Use certified tax software or complete a paper return.
Complete Schedule 6: This form is used to calculate and claim the CWB.
Submit your return: Ensure all information is accurate to avoid delays.
For the Disability Supplement, if you or your spouse qualify for the disability tax credit, you must claim both the basic amount and the disability supplement on your tax return. If both partners qualify, you must complete separate Schedule 6 forms, though only one person can claim the basic amount.
What to Do If You Don’t Receive Your Payment
If you are eligible but haven't received your Canada Workers Benefit or Advanced Canada Workers Benefit payment:
Check the payment date: Ensure the payment date hasn't been delayed due to a weekend or federal holiday. Payments are issued on the previous business day in such cases.
Wait 10 business days: Allow up to 10 business days for the payment to reach your bank account.
Contact the CRA: If you’ve confirmed your eligibility and still haven’t received your payment, contact the Canada Revenue Agency for assistance.
It's advisable to sign up for direct deposit to ensure that payments are transferred directly into your bank account without delays.
Why the Canada Workers Benefit Matters
The Canada Workers Benefit is a lifeline for many low-income workers and families. Each year, over 3 million Canadians benefit from this program, receiving critical financial relief that helps them meet basic living expenses. By providing financial relief, it helps reduce poverty, encourages workforce participation, and improves the overall quality of life for eligible Canadians.
The Advanced Canada Workers Benefit ensures that recipients get timely support when they need it most, reducing the financial strain and promoting a more stable economic environment for low-income workers.
Final Thoughts
The Canada Workers Benefit and the Advanced Canada Workers Benefit are essential programs designed to support low-income Canadians who are actively participating in the workforce. Whether you're a single worker, a family, or an individual with a disability, these benefits offer critical financial support to help you meet your needs. With the added flexibility of the ACWB, Canadians can now receive their benefits in advance, ensuring they have the resources to manage their finances throughout the year. If you’re eligible, be sure to apply and take advantage of the support these programs offer.
