Government of New Brunswick

For self-employed applicants or clients, see Self-Employed.

The Wage Exemption is intended to exempt a portion of wages earned from part-time and full-time employment and/or self-employment when calculating income. The wage exemptions benefits are available to clients; but are not available to applicants. Wage exemptions are not to be considered in determining eligibility. The wage exemptions are applied to a case, not to a particular member and therefore apply to the total wages in the unit.

 

The wage exemption will be applied when determining eligibility for applicants who have been Basic Assistance clients within the past 30 days (E.g. Case is closed on Jan. 10th, client reapplies on Feb. 8th, the wage exemption will be used to determine eligibility).

 

Business Deduction

A deduction to allow for business expenses may be provided for the following types of wages, and may be provided in addition to a wage exemption:

 

Wage Exemption Amounts

 

The monthly wage exemption amounts are as follows:

 

Rate Type One Person Unit Units of More Than One Person
Transitional Assistance

 

(All clients in this rate type   including the Single  Employable, Designated Needs, Long Term needs etc. )  

 

$150 fix portion amount   +  (30% of the balance of   earnings)

 

$200 fix portion amount   +  (30% of the balance of   earnings)

 

Extended Benefits

 

$500 fix portion amount   +  (30% of the  balance of   earnings)

 

$500 fix portion amount   +  (30% of the  balance of   earnings)

 

Examples of wage exemption calculation:

(1) Client remains eligible for a portion of monthly assistance cheque 

Single Employable at the Transitional Rate = $537.00  Monthly earned income = $600
To calculate total wage exemption amount:
Step #A  = $600 monthly earnings – fix portion amount ($150) = $450
Step # B = $450 remaining earnings ( .30)  = $135
Total amount of  wage exemption is = fix portion amount ($150) + $135 (30% of the balance of the earnings) = $285
Total amount of income deducted from cheque = $600 (monthly earned income)  - $285 (total wage exemption)  = $315
Monthly cheque amount after the wage exemption is applied  =  $537 - $315 = $ 222

 

(2) Client remains eligible for a portion of monthly assistance cheque 

Single Parent at the Transitional Rate = $861   Monthly earned income = $800
To calculate total wage exemption amount:
Step #A  = $800 monthly earnings – fix portion amount exemption ($200) = $600
Step # B = $600 balance of earnings ( .30)  = $180
Total amount of  wage exemption is = (fix portion amount exemption) $200    + $180 (30% of the balance of earnings) = $380
Total amount of income deducted from cheque = $800(monthly earned income)  - $380 (total wage exemption)  = $420
Monthly cheque amount after the wage exemption is applied  = $861 - $420 = $441

A month is defined as the 22nd to the 21st as per income reporting periods. The reporting period for July would be May 22nd to June 21st and for August, June 22nd to July 21st and so on for other months.

Also see Clients Who Become Employed for example calculations.