This document has been updated on October 24th, 2017 and reflects the state of the Law, including draft amendments, at that date.


Incentives for Workers

Canada Employment Credit – Federal

The Canada Employment Credit is a non-refundable tax credit equal to 15% of the lesser of $1,178 or the employee’s employment income.

Working Income Tax Benefit – Federal

Low-income Canadian workers who are at least 19 years of age are entitled to a refundable tax credit up to 25% of earned income (employment or business income) in excess of a threshold amount, up to an annual limit. Disabled persons are entitled to a supplement. The benefit, which can only be claimed by one spouse, is based on the applicant’s net income in the previous year, family situation and province of residence. An individual may apply for an advance payment of one-half of the benefit to which he/she is entitled for the year24.


24 For additional information and to estimate the amount to which you are entitled, go to the CRA Internet site at: http://www.cra-arc.gc.ca/bnfts/wtb/menu-eng.html.

Work Premium – Quebec

The work premium is a refundable credit comparable to the federal working income tax benefit that can be claimed by Quebec residents who receive work income, i.e. employment or business income, of at least $2,400 for a single person or a head of a single-parent family, or at least $3,600 for a couple, whether or not they have children. The credit is determined based on the family situation and the applicant’s income25. An application for advance payment may be made for part of the premium provided certain conditions are met.

An application for advance payment may be made for part of the premium provided certain conditions are met.

Individuals with a severely limited capacity for employment can benefit from the Adapted Work Premium, which is calculated using more flexible parameters than the Work Premium. Moreover, a supplement is added for long-term recipients giving up last-resort financial assistance during labour market integration. A full-time student can only benefit from the work premium if he/she is the parent of a child with whom her/she resides.

Households subject to a decrease of their work premium due to an increase in their income from work can benefit from some tax relief under to the tax shield (see Section II).


25 The following site provides more information: http://www4.gouv.qc.ca/EN/Portail/Citoyens/Evenements/DevenirParent/Pages/credt_impot_prime_travail.aspx.

Deductions for Workers – Quebec

An employee may deduct an amount equal to 6% of his/her work income, including self-employment income, up to a maximum of $1,140.26


26  For 2016. Indexed annually.

Tax Credit for Experienced Workers – Quebec

In 2017, individuals aged 63 and over 27 are eligible for a non-refundable tax credit of 15.04% of their work income over $5,000, up to a maximum amount of income of $4,000 ($6,000 if the taxpayer is aged 64 and $8,000 if the taxpayer is aged 65 and over)28. This tax credit can neither be carried over nor transferred to a spouse and is reduced when the work income exceeds $33,75529.


27 The eligibility age will decrease to 62 as of 2018. If the worker reaches the eligibility age during the year, only the income earned from that time will be eligible for the tax credit.
28 Amounts for 2017. Amounts revised to $4,000 (62 years old), $6,000 (63 years old), $8,000 (64 years old) and $10,000 (65 years old and over) as of 2018.
29 Amount indexed annually. A transitional rule applies to taxpayers who were already aged 65 and over in 2015.