Canada Workers Benefit will be even better from July 2025 – Know full details!
To help low-income workers, the Canadian government has decided to make a big change in the Canada Workers Benefit (CWB). This new update will come into effect from July 12, 2025 and more financial assistance will be given under it. This benefit will be distributed in installments every quarter (once in three months), so that the needy people can get timely financial help.
What is Canada Workers Benefit (CWB)?
Canada Workers Benefit is a refundable tax credit, which is given to increase the income of low-income workers and keep them in the workforce. It is divided into two main parts:
- Basic Amount: This assistance amount is available based on the income and family situation of the person.
- Disability Supplement: It provides additional support to those who are affected by disability.
Major changes from July 2025
The government has decided to increase the amount of money received under the CWB and expand the eligibility criteria to cover more people. Under these changes, the maximum benefit amount and income limits have been increased so that more people can benefit from it.
| Category | 2025 Maximum Benefit | Income Threshold for Phase-Out | 2024 Maximum Benefit | 2024 Income Threshold for Phase-Out |
|---|---|---|---|---|
| Single Individuals (no children) | $1,633 | Begins at $26,855; ends at $37,474 | $1,590 | Begins at $26,149; ends at $36,749 |
| Families | $2,813 | Begins at $30,639; ends at $49,391 | $2,739 | Begins at $29,833; ends at $48,093 |
| Disability Supplement | $843 | Begins at $37,740; ends at $42,222 | $821 | Begins at $36,748; ends at $41,230 |
Eligibility conditions for 2025
- Citizenship: Must be a resident of Canada during the year 2024.
- Age: Must be 19 years of age or older as of 31 December 2024. If you are married or have children, there is no age limit.
- Working income: Must have an income of at least $3,000 in 2024.
Eligibility for Disability Supplement
If a person wants to claim the Disability Supplement, he or she must:
- Be eligible for Disability Tax Credit and file Form T2201 with the Canada Revenue Agency (CRA).
- Adjusted net income for single taxpayers should be less than $37,740.
- Adjusted net income for families should be less than $49,389.
These people will not get the benefit of CWB
- Full-time students (who have studied for more than 13 weeks in the year 2024, but do not have any dependents).
- People who have been in prison for more than 90 days.
- People who are diplomats in Canada and do not pay taxes.
How to apply for CWB?
If you are eligible for CWB, you must file your 2024 income tax return and fill out Schedule 6 (Canada Workers Benefit) form to receive it.
- If you are eligible for disability supplement, you must claim both – basic amount and disability supplement in the tax return.
- If you are married, only one spouse can claim the basic amount, but both can fill separate Schedule 6 forms for disability supplement.
Advanced Payments
The government has introduced an advance payment scheme from July 2025, in which eligible individuals will receive 50% of their CWB amount upfront. This payment will be given in three quarterly installments. If a person received an advance CWB payment in 2024, they will not need to apply again in 2025 – they will automatically be included in the scheme.
Advance payment dates for 2025:
- 12 July 2025
- 11 October 2025
- 10 January 2026
What to do if you want to avail CWB?
- File your 2024 tax return and don’t forget to fill out the Schedule 6 (Canada Workers Benefit) form.
- If you want Disability Supplement, make sure that the Disability Tax Credit is pre-approved.
- Keep your personal details updated with the CRA, so that there is no delay in payment.
This change made by the government in CWB is an important step for low-income workers. To take advantage of this scheme, all eligible people should file taxes on time and avail government assistance.
FAQs – Frequently Asked Questions
What is Canada Workers Benefit (CWB)?
CWB operates as a refundable tax credit to give financial help to low-income workers while motivating them to become employed.
How is CWB paid?
Qualified recipients receiving Child Wealth Benefits will get 50% of their total amount distributed through three advance payments based on their previous tax return information.
How to apply for CWB?
File your 2024 income tax return and complete the Schedule 6 form to claim this benefit.
Do people who have already received CWB need to apply again?
Your receipt of advanced CWB payment last year will automatically result in its continuation throughout 2025.