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Ministry of Social Development and Social Innovation

Annualized Earnings Exemption

People receiving disability assistance are entitled to an earnings exemption, which allows them to earn income without it being deducted from their disability assistance.

Starting January 2015, the ministry is expanding the Annualized Earnings Exemption (AEE) to all ministry clients in receipt of disability assistance. The AEE was phased-in, beginning in January 2013, and until now has only been offered to clients in receipt of disability assistance whose past earnings pattern showed that they were most likely to benefit from the AEE.

The AEE is a more flexible way of calculating earnings exemptions. The AEE will help people receiving disability assistance who are able to work to take advantage of employment opportunities and keep more of their earnings. For individuals receiving disability assistance who do not have earned income, there will be no impact.

How it Works

Starting in 2015, people receiving disability assistance will automatically be set up with the AEE—there is no registration.

The AEE applies to earnings received between January 1 and December 31 each year. The AEE allows you to keep up to the following earned income limits each calendar year.

The yearly AEE limits are:

  • $9,600 for a single individual who has the Persons with Disabilities (PWD) designation
  • $12,000 for families with two adults, only one of which has the PWD designation
  • $19,200 for families where both adults have the PWD designation

These amounts are equivalent to 12 times the monthly exemption limit for the calendar year. If there is a change in family circumstances during the exemption year, the amount of the family unit’s AEE limit will be adjusted based on the circumstances of that change. 

Under the AEE, you are able to earn up to your AEE limit during the calendar year (with no monthly maximums) without affecting your monthly disability benefits.

You must complete a Monthly Report (stub) when you earn income, even if the amount of income has not changed from the last month. You must also report if you have any changes in your circumstances. Reports must be submitted to the ministry by the fifth of the month.

You may need to budget your money if you expect to earn more than the annual limit before the end of the calendar year.

I am/we are a Monthly Amount *new* Annual Limit
Single person with the PWD designation $800 $9,600
Couple, and one of us has the PWD designation $1,000 $12,000
Couple, and both of us have the PWD designation $1,600 $19,200
My/our earnings How AEE works for me When do I complete a Monthly Report (stub)?

I/we have no earnings throughout the calendar year

No change

You must complete a stub if it is required for other reasons (i.e., other income or a change in circumstance)

I/we have earnings, but never more than the monthly amount in any one month

No change

You must complete a stub if you have any earned income to report (even if it is the same amount of earned income as last month)

You must also complete a stub if it is required for other reasons (i.e., other income or a change in circumstance)

I/we have earnings, sometimes more than the monthly amount, but never more than the annual limit

The AEE will allow you to keep all of your earnings

I/we expect to earn more than the annual limit in a calendar year

The AEE will allow you to keep more of your earnings during the first part of the year (until you reach your AEE limit)

If you continue to earn income after reaching your AEE limit, your assistance will be reduced

You may need to budget your money over the course of the year

More information about the AEE phased in approach and the AEE for 2015 can be found in the Frequently Asked Questions section.