Canada faces a persistent employment challenge for people with disabilities. For many outside the disability community, the levels of poverty, unemployment and underemployment experienced by disabled Canadians are startling and entrenched.
Statistics Canada data show disabled Canadians are significantly less likely to be employed than those without disabilities. Past reports found that employed Canadians with a mild disability earned roughly $3,000 less per year than their non-disabled peers, while those with more severe disabilities saw gaps approaching $8,000. With the pandemic having a disproportionate impact on disabled people, there is a real possibility these disparities have grown.
Beyond lower earnings, living with a disability is often more expensive. The informal term “crip tax” describes the extra costs that accompany disability: pre-packaged food when cooking is difficult, needing taxis instead of driving, or purchasing medical equipment and assistive devices. These necessary expenses add up and reduce disposable income.
Some initiatives and programs exist to improve employment outcomes: media and corporate programs focused on hiring, federal entrepreneurship supports for people with disabilities, and public awareness efforts like National Disability Employment Awareness Month each October. Still, the path to finding and keeping well-paid work remains complicated for many disabled people.
When a disabled person considers moving into new or better employment, there are practical financial and administrative issues to address. Benefit rules, tax credits, registered savings plans and provincial differences can all affect whether a job actually improves financial security. The following guidance highlights the main areas to review and plan for before accepting a position.
Understand the impacts on income assistance
Before accepting a job, learn how employment and higher earnings will interact with your province’s income and disability supports. Income assistance programs are designed to provide financial stability, but most include asset and income limits. Earning more can trigger reductions to benefits or the loss of supports such as extended health coverage, prescription coverage, or subsidized home care.
For example, in some provinces extended healthcare benefits are tied to income levels; exceeding those limits can lead to losing coverage. In others, moving off a disability income program may complicate access to subsidized home care or other supports. Rules vary by province and territory, so check the specifics where you live.
Budget carefully to ensure the new role will meet your minimum financial needs. Consider short-term and long-term earning potential: an entry-level job may pay less initially but lead to better opportunities later. Also weigh the stress and administrative burden of moving in and out of government programs—re-enrolling can be difficult if your situation changes or if there is an administrative error.
Ultimately, map out your expected take-home pay, changes to benefits, and out-of-pocket costs related to your disability before signing an employment agreement. This assessment will help you make an informed decision about whether the role improves your overall financial and personal wellbeing.
Contribute to a registered disability savings plan
If you have not opened a registered disability savings plan (RDSP), consider doing so. RDSPs are designed to help people with long-term disabilities save for the future and can be established at many financial institutions. While contributions are not tax-deductible, government-funded grants and bonds are available through a matching program to boost savings.
Grant amounts depend on income and are capped annually; for example, they were capped at $3,500 per year in 2022. People with low or modest incomes may also qualify for an annual Canada Disability Savings Bond. One practical tip is to set up automatic monthly transfers to your RDSP when your budget allows—small, consistent contributions take advantage of matching grants and help build long-term savings.
Eligibility for an RDSP requires approval for the disability tax credit (DTC). If you are unsure whether you qualify, speak with a Canada Revenue Agency representative or a financial advisor knowledgeable about RDSPs to determine your options and next steps.
Access the disability tax credit
The federal disability tax credit provides a non-refundable tax reduction that can meaningfully lower your tax burden. In 2022, that deduction was valued at $8,662 for eligible adults, with an additional supplement for children under 17. The DTC can also unlock access to other supports, such as the RDSP, making it an important part of financial planning for many disabled people.
Applying for the DTC involves a formal assessment process and supporting documentation from healthcare providers. While eligibility has expanded in recent years to include more conditions and everyday activity impairments, many people who could benefit still struggle to complete the application—barriers include unstable housing, inaccessible healthcare services, or difficulty gathering medical records.
If you cannot access the DTC, other provincial or federal programs might still offer support. Seek advice from community organizations, disability advocates or a tax professional to identify benefits and credits tailored to your circumstances.
Embrace this moment in your life
Starting or returning to paid work can be an exciting step. Connect with local disability support organizations and advocacy groups to get practical help and workplace accommodation advice. Groups such as spinal cord injury associations, disability justice networks and local community agencies can provide guidance on navigating benefits, paperwork and workplace rights.
Create a realistic budget that accounts for how new income will affect benefits and out-of-pocket costs. Make a plan that includes saving through an RDSP if possible, applying for the DTC when eligible, and mapping your career path so early jobs can lead to higher-paying opportunities in the future. Above all, recognize the transition as a significant and positive moment—take time to appreciate progress while staying informed and prepared.
Read more about careers:
- How to set financial goals that are realistic and achievable
- The secret to planning for financial negotiations
- 10 high-paying jobs that don’t require a degree
- How much should I put in my RDSP?