Expected to Work/Barriers to Full Employment Policy & Procedures

Published Date: December 13, 2012
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11 Income

Income Deducted at Source to Repay Other Programs

AUTHORITY

Income Support, Training and Health Benefits (ISTHB) Regulation, Section 23

POLICY

Section 23(4)(b)(ii) of the ISTHB Regulation only applies to garnishee orders on employment income. However, clients may receive income that is subject to other automatic deductions (e.g., buying back a portion of their pension, overpayments, etc.) from a source like:

  • Employment Insurance
  • Workers’ Compensation
  • Canada Pension Plan
  • Quebec Pension Plan

For one month only, the amount the client actually receives from an income source is counted as income. After that month, the amount that is withheld is also counted as income received.

Rationale
The one-month grace period allows the client time to negotiate with the creditor. The client may be able to have the repayment suspended until he is working, or at least have the monthly deduction lowered.

In the second and all subsequent months, the worker counts the amount of income before automatic deduction, whether the automatic deduction is lowered or not.