The Canada Recovery Benefit is a CERB transition program that provides income support to workers who do not qualify for Employment Insurance (EI).
The CRB will provide claimants $500 weekly, for a total of 26 weeks. Individuals will be able to claim CRB for two-week periods which will run from September 27, 2020 to September 25, 2021. The period commences at the end of the CERB period.
An individual is eligible to receive the CRB if they:
- are not eligible for EI benefits
- did not apply for or receive income from the Canada Recovery Sickness Benefit (CRSB), the Canada Recovery Caregiving Benefit (CRCB), short-term disability benefits, workers’ compensation benefits or Employment Insurance (EI) benefits during a specific 2-week period being claimed
- currently reside in Canada
- have not quit their job voluntarily
- are at least 15 years old and have a valid Social Insurance Number (SIN)
- had employment and/or self-employment income of at least $5,000 in 2019 or in 2020 (including non-eligible dividends)
- have seen their income drop at least 50% for the 2-week period they are applying for (see below for example)
- have not quit their job or reduced their hours voluntarily on or after September 27, 2020
- were seeking work during the period, either as an employee or in self-employment
- have not turned down reasonable work during the 2-week period they’re applying for
How to calculate the 50% reduction:
The 50% reduction is based on your average weekly employment or self-employment income from either 2019, 2020, or the previous 12 months. You will need to check that you meet this criteria for every period you apply for.
2019 or the last 12 months
$26, 000 (employment and self-employment income in 2019 or the last 12 months)
= $500 (average weekly income in 2019 or the last 12 months)
= $250 (50% of the average weekly income in 2019 or the last 12 months)
CRB 2-week period
$100 (employment and self-employment income for the CRB period)
= $50 (average weekly income for the CRB period)
The average weekly income for the CRB period must be less than 50% of the average weekly income in 2019, 2020, or the last 12 months.
In this example, since $50 (average weekly income for the CRB period) is less than $250 (50% of the average weekly income in 2019 or the last 12 months), the individual would meet this criteria.
What is included in employment or self-employment income:
For this calculation, self-employment income is your revenue minus any expenses incurred to earn the self-employment revenue.
Employment and/or self-employment income includes, among other things:
- tips you may earn while working
- non-eligible dividends
- honoraria (such as nominal amounts paid to emergency service volunteers)
- royalties (such as those paid to artists)
Do not include the following in the calculation:
- Student loans and bursaries
- Maternity and parental benefits from EI or similar QPIP benefits
- Any Canada COVID-19 emergency or recovery benefits
You may work while receiving the CRB
You may earn employment or self-employment income while you receive the CRB. But the CRB has an income threshold of $38,000.
You will have to reimburse $0.50 for every dollar of net income you earn above $38,000 on your income tax return for that year (2020 or 2021). You will not have to pay back more than your benefit amount for that year.
More details can be found here