Work premium

The work premium is a refundable tax credit designed to encourage workers to remain in the work force.

The premium granted to an individual

• is determined based on the individual’s work income and personal and family situation;
• is fixed once the individual’s income tax return has been filed;
• may be paid by means of advance payments.

Under certain conditions, a person who is eligible for the work premium or the adapted work premium may also be entitled to the supplement to the work premium.

Child
A child under 18, or a child 18 or over who is enrolled full time in vocational training at the secondary level or in a post-secondary program.

Clientele
Individuals whose work income is derived from employment or the operation of a business.

Conditions
To be entitled to the work premium, an individual must meet all the following conditions:

• The individual resides in Québec on December 31 of the taxation year for which the work premium is being claimed, and is
• a Canadian citizen;
• an Indian;
• a permanent resident;
• a person on whom Canada has conferred refugee protection.
• The individual is 18 or over at the end of the year for which the work premium is being claimed unless, at that time, he or she has a spouse, is the father or mother of a child (see definitions) and lives with the child, or is recognized as an emancipated minor by a competent authority.
• The individual or, where applicable, the individual’s spouse at the end of the year reports employment income, a research grant, benefits under the Wage Earner Protection Program, or income from a business that the individual or the individual’s spouse operated alone or as a partner actively involved in the business.
• The individual has not transferred to his or her mother or father an amount for a child 18 or over enrolled in post-secondary studies (Schedule S).
• No one received the child assistance payment from the Régie des rentes du Québec with regard to the individual, unless the individual reached age 18 before December 1 of the year for which the work premium is being claimed.
• No one designated the individual as a dependent child for the purposes of claiming one of the tax credits respecting the work premium (Schedule P).
• At the end of the year, the individual was not confined to a prison or similar institution or, if the individual was so confined, did not spend more than 6 months there during the year.
• The individual’s work income is equal to or less than
• $2,400 for a person living alone or a single-parent family;
• $3,600 for a couple with or without children.
• The annual income of the individual’s household is over than
• $15,344 for a person living alone;
• $23,606 for a couple without children;
• $32,856 for a single-parent family;
• $44,788 for a couple with at least one dependent child.

The work premium is calculated based on the individual’s work income, household income and family situation. The maximum amounts are as follows:

Beyond certain income thresholds, the premium decreases until it reaches zero.

The individual may receive the premium

• as a lump-sum payment of the full amount upon filing the income tax return;
• partially in the form of advance payments, with the balance being paid upon filing the income tax return. The portion that may be received by advance payments is 75% of the estimated premium for a person living alone or a couple without children, and 50% in all other cases.

Note
Since 2011, advance payments are made on a monthly basis.

The work premium replaced the parental wage assistance program as of January 1, 2005.

• The Work Premium, Adapted Work Premium and Supplement to the Work Premium (IN-245-V) (PDF, 257 KB)