Returning To Work While On CPP Disability Benefits
Most people who receive CPP Disability benefits experience severe and/or prolonged limitations that prevent them from working at any job on a regular basis, but most would benefit from the additional income that a part time or temporary job would bring.
Many are under the impression they can’t work because their CPP benefits would be cut off or lessened to the point that it would not make financial sense to work. This is not entirely true.
You must contact Service Canada when you begin working, and once you have earned $6,400 (before tax) in 2022. Your disability benefits may be impacted by your gross (before tax) earnings:
If you earn below $6,400 (before tax), this alone should not affect your disability benefits.
If you earn between $6,400 and $17,489.40 (before tax), this may show that you are regularly capable of working and it may affect your disability benefits.
If you earn $17,489.40 (before tax) or more, this demonstrates you are regularly capable of working and you will likely no longer qualify for disability benefits.
So, let’s look at this $6,400 before tax amount. If a person works two 4-hour shifts per week at minimum wage ($15.65), the weekly wage before tax will be $125.20. Multiply this by 52 weeks to determine the annual wage before tax, they would be earning $6,510.40 in a year. While this amount is slightly higher than the amount allowed, the effect to the benefits will be very minimal.
It’s not until you start earning substantially more that Service Canada will begin to ask if you are capable of working on a regular basis. This means a person can work and earn extra income without penalty. So, a part time job of 8 hours a week is possible for you. You can also consider a temporary or seasonal position too.
I also think there may be small business employers who will appreciate having an employee who doesn’t want many hours but can be a reliable part-time employee.
While your benefits will stop once you have reached the $17, 489.40 threshold, it doesn’t go away permanently. If you return to work on a regular basis, you may be able to continue to receive your disability benefits for three months. This gives you and the CPP time to evaluate your ability to work regularly.
If you are no longer able to work after your benefits stop, you may qualify for the Automatic Reinstatement or the Fast Track application process. These options are designed to get you back into pay as quickly as possible when you are unable to continue working due to a reoccurrence of the same or related disability. Communication with Service Canada about this subject is key, keeping them informed about what you are trying to do lets them know what is happening if they see you reporting income earnings.
Allowing someone to work while on CPP Disability gives them an opportunity to earn extra income which in turn gives a person increased self confidence, greater independence, and a sense of contributing to their community.