I.          Temporary Income Support for Unemployed Workers

Basic rate: 55% of average earnings, up to $413 a week. The amount of weekly benefits depends on earnings in the last 26 weeks.

Must have worked between 420 and 700 hours within the last 52 weeks. Two pieces of information will be needed:

a) social insurance number (SIN)

b) record of employment (ROE), which is provided by the employer.

Between 14 and 45 weeks, depending on the regional rate of unemployment.

Workers can calculate their approximate benefit as follows:

1.   Divide total earnings in the last 26 weeks of work by the number of weeks worked in the last 26 weeks or by the minimum divisor number, whichever is greater.

Minimum divisor depends on the regional rate of unemployment:

2.   Multiply resulting number by the benefit rate (55% for most).

Low-income families may receive up to 75% of average earnings in 1999 and 80% in 2000.

There is no unemployment insurance.

Usually 50% of average weekly wage, up to maximums that range between $180 and $359 per week, depending on state. Some examples of maximum weekly benefits are:

20 weeks of employment during the relevant measuring period.

26 weeks in most states.

Typically, the benefit amount depends on wages and employment during the base period.

20% of unemployment benefit when work hours are reduced.

All workers would work 80% of previous hours.

Short time compensation used during temporary periods of economic downturn.

II.         Severance Pay

Federal jurisdiction: 2 days’ wages for each year of employment (minimum of 5 days).

Federal jurisdiction: 12 consecutive months of employment.

Lump sum payment.

Ontario: one week’s regular wage for each year of service (maximum of 26 weeks).

Ontario: 5 years of service or more.

•    Workers with specified period contracts :
  
  With less than one year of service : Wages received during half of the period of employment.

With more than one year of service: 6 months’ wages for the first year of service plus 20 days’ wages for each additional year of service.

Dismissed for unjustified reasons.

Lump sum payment.

•    Workers with unlimited labor contract: 3 months’ wages plus a length-of-service bonus equal to 12 days’ wages for each year of service.  In addition, 20 days’ wages for each year of service when your employer refuses to reinstate you in your job.
  

Dismissed for unjustified reasons.

Lump sum payment.

•     Voluntary job leavers: 12 days’ wages for each year of service with the same employer, called length-of-service.

15 years or more of service with the same employer.

Lump sum payment.

•    All dismissed permanent workers, no matter the reason for dismissal, should be paid a length-of-service bonus equal to 12 days’ wages for each year of service with the same employer.

Many employers do offer severance pay to employees who are laid off, but no law requires it. In the states where severance payment is obligatory by law, for each completed year of service workers should be paid:
In Maine, Virgin Islands: one week’s pay.
In Massachusetts, Pennsylvania, and Rhode Island: 2 weeks’ compensation.

In Virgin Islands: more than one year of service. In Maine, Rhode Island, Massachusetts: more than 3 years of service.

•     Temporary disability:

Provincial programs insure between 75% and 90% of net earnings.
Maximum insured earnings vary among provinces. In 1998 rates are:

All workers covered by workers’ compensation who have suffered a personal injury or disease in the course of employment.

Temporary disability:

Until further medical treatment is not required.

•     Permanent total disability:
  Pension between 75% and 90% of earnings. Maximum benefits range from $1,687.50 to $3,556.25 a month.

For the rest of your life.

•     Permanent partial disability:
  Pension equal to a proportion of full pension corresponding to impairment of earnings capacity.

 Upon reaching the age of 65, disability pension ceases and retirement pension commences.

•     Death benefits:
  Lump sum for funeral expenses, ranging from $1,960 to $8,150 according to province. In addition, pension to the spouse equal to the amount you would have received if permanently disabled.

•     Temporary disability:
  Full salary at the time of job accident.

All workers covered by the Instituto Mexicano del Seguro Social who suffer a personal injury or disease that arises out of or in the course of employment.

Up to 52 weeks. If for medical reasons you are not able to return to work the compensation will continue until your incapacity is declared total or partial.

•     Permanent partial disability:
  
  If disability is greater than 50%:  compensation equal to a percentage of the amount received for permanent total disability.
  
  If disability is between 25% and 50%: either 5 times the amount of the annual pension for total disability or a monthly pension.
  
  If disability is between 1% and 25%: 5 times the amount of pension for total disability.
  

•     Permanent total disability:
  a pension equal to 70% of insurable salary during the last 52 weeks.

For the rest of your life.

•     Death benefits:
  Spouse receives pension equal to 40% of pension for permanent total disability. In addition, 2 months of minimum wages in the Distrito Federal to cover funeral expenses.

•     Temporary disability:
  Income benefits range from 66.6% to 88% of earnings, depending on the state.  Weekly payments are limited to a minimum and a maximum percentage of the state’s average weekly wage.

All workers covered by workers’ compensation who become injured or sick in the course of employment.

Temporary disability: varies among states; in some states benefits last for the whole disability period.

•     Permanent partial disability: 
  Depends on the degree of disability and varies among states.  Some states fix benefits based upon injuries; others convert benefits to a lump sum.

•     Permanent total disability:
  In most states a pension equal to 66% of earnings.

Permanent total disability: for the rest of your life.

•     Death benefits: 
  Survivors’ pension ranges between 35% and 70% of worker’s earnings. Half of the states pay $3,000 or more for funeral expenses.  Some examples of maximum burial allowances are:

IV.        Maternity Leave

Basic benefit rate of 55% of average earnings, up to $413 a week.

Must have worked a minimum of 700 hours in the past 52 weeks or since the start of your last period of maternity leave.

Total coverage cannot exceed 15 weeks.

•     For insured workers:
  100% of insured earnings.

Premiums paid to IMSS for at least 30 weeks in the last 12 months.

6 weeks before and 6 weeks after giving birth.

60% of insured earnings when for medical reasons the employee is not able to return to work.

All workers are entitled to this benefit, irrespective of the number of years of employment.

Up to 52 weeks.

•     For non-insured workers:
  100% of insured earnings

No legal right to receive income support, unless the labor contract specifies so or paid leave is provided for periods of similar disabilities.

Minimum wages vary among provinces and territories. Minimum hourly rates for experienced adult workers in 1998:

All workers who perform work or supply a service.

Fixed periodically by each province.

Since January 1, 1999, the minimum wages are:

All workers.

General Minimum wages and Occupational Minimum wages are fixed annually by the Comisión Nacional Tripartita, which consists of representatives of employees, employers and the government.

There are 88 occupational minimum wages that vary depending on the geographical areas mentioned.

All workers who perform any occupation under minimum wage, irrespective of the industry.

Since September 1997 the federal minimum wage is $5.15 per hour.

All employees whose employer has annual sales of $500,000 or more or is engaged in interstate commerce or the production of goods for interstate commerce.

Fixed periodically.

Some states mandate a higher minimum wage than the federal minimum wage. As of January 1, 1998, minimum wage rates higher than the federal standard are in effect in Alaska ($5.65 per hour), Connecticut ($5.18), the District of Columbia ($6.15), Hawaii, Massachusetts ($5.25), Oregon ($6.00) and Vermont ($5.25).

All employees whose employer has annual sales of less than $500,000 and with 2 or more employees engaged in interstate commerce or the production of goods for interstate commerce.

One-and-one-half times the regular rate for each hour worked in excess of standard hours; in New Brunswick, Nova Scotia and Newfoundland, one-and-one-half times the minimum wage.

More than 8 hours in a day (for federal, Alberta, British Columbia, Manitoba, Northwest Territories, Saskatchewan and Yukon) or more than 40 hours in a week in all jurisdictions except Quebec (42); Alberta, New Brunswick and Ontario (44); and Prince Edward Island and Nova Scotia (48).

Double the regular rate in British Columbia.

More than 11 hours in a day or 48 hours in a week.

Double the regular rate for those working more than the standard daily hours.

All workers working more than 8 hours in a day for day work, or 7 hours for night work, or 7.5 hours for mixed hours.

If overtime exceeds 9 hours a week, overtime rate is equal to 3 times the regular rate. Employer should pay the corresponding sanctions fixed by the LFT (Federal Labor Law)

One-and-one-half times regular rate for overtime hours.

Workers working more than 40 hours in one week.

VII.       Paid Vacation

Generally 4% of average wages for the 12 months for which the vacation is given.

Workers with one year of service.

At least 2 weeks of annual  vacation.

In many jurisdictions, 6% of the average wages for the 12 months for which the vacation is given.

Years of service required: Saskatchewan,  Manitoba (1); Alberta, British Columbia, Northwest Territories, Quebec (5); federal (6); Newfoundland (15).

Three weeks of annual vacation.

Public holidays are paid at the worker’s regular rate.

In most jurisdictions, varying requirements relating to the number of days worked prior to the holiday.

Pay for holiday worked: generally, regular pay plus one-and-one-half times the regular rate for each hour worked or, in many cases, another day off with pay.

Six working days of paid vacation after the first year of work.

All employees working for more than one year with same employer.

Vacation increases by 2 days for each subsequent year of service, up to 12 days.  After 4 years service, the vacation increases by 2 days for every 5 years of service.

Public holidays are paid at the regular rate.  Workers working on a holiday must be paid twice the regular rate.

Not obligatory, however most employers provide full-time workers some paid time off each year.

Depends on the employee’s length of service to the company.

•     Social Assistance or welfare

Low-income workers can receive a supplement to their wages so that their income from work will be at least equal to the amount they would receive from welfare.  In 1997, estimated annual welfare incomes for a typical family of 2 adults and 2 children ranged from $11,300 to $15,700.

Individuals and families whose resources are inadequate to meet their needs and who have exhausted all other sources of support.
Applicants must have needs test, comparing assets and income with needs as defined by each province/territory.

Benefits vary considerably according to the situation and status of the work recipient. Annual basic benefits rate for family are:

Unemployed applicants are required to engage in activities related to employability such as academic upgrading, employment preparation programs and job research.

•     The National Child Benefit (NCB):

• Scholarships, medical assistance and basic food packages for children.
• Free school breakfasts for children of poor families.
• Milk at low prices for poor families with children under a certain age.
• One free kilogram of tortillas a day for poor families.
• Medical assistance for those people not covered by Social Security institutions.

Poor families.

As long as needed and in compliance with the requirements.

Medicaid:
Medical assistance to individuals and families with low incomes and resources.

Low income, assets and resources are tested against established thresholds.

Ends at the end of the month in which a person ceases to qualify.

Medicare:
Health insurance for people 65 years of age and older, younger disabled people, and people with kidney failure. 

Must have worked for at least 10 years in Medicare-covered employment and be a citizen or a permanent resident of the United States.

Health insurance for uninsured children.

IX.         Income Support for Disabled Workers

Canadian/Quebec Pension Plan
(CPP/QPP)
Cash benefit consisting of 2 parts: a flat rate component and an earnings-related component. In 1998, the maximum amount allocated was $895.36 per month.

CPP:
Persons between 18 and 65 years old who have contributed to the CPP 4 out of the last 6 years.

The CPP benefit is payable until the beneficiary either:

• recovers from the disability;
• receives a CPP early retirement pension;
• turns 65; or
• dies.

CPP provides for vocational rehabilitation if:

• with a vocational rehabilitation program the person would likely be able to return to work;
• the person is receiving a CPP disability  pension;
• the person is willing to undergo a vocational rehabilitation program; and
• The person’s medical condition is stable and his/her doctor approves.

QPP:
Persons between 18 and 65 years old who have contributed to the QPP 2 out of the last 3 years or 5 out of the last 10.

Some exceptions are made for example where applicants worked in another country during the period or were raising children.

Social Assistance or welfare

Estimated annual income from provincial and territorial social assistance programs for a disabled person in need in 1997 ranged from $6,663 to $11,160.

Depending on the jurisdiction a disabled person on welfare can also receive one of a number of disability-related supplements.

Applicants must have a needs test, comparing assets and income with needs as defined by each province/territory.

•    Workers insured with IMSS:

35% of average earnings during the last 500 weeks, plus family assistance.

Disability payment cannot be less than the minimum wage in the Distrito Federal and can not be higher than the average wage upon which the payment was based.

Premiums must have been paid for at least 250 weeks, or 150 weeks if the level of disability is 75% or more.

During the time of disability.

•    Disabled workers unable to perform their job are entitled to receive compensation equal to one month’s salary plus 12 days’ wages for each year of service with the same employer, or to have a compatible job if she or he agrees.

Workers disabled for non-professional reasons with a physical or mental incapacity or obvious disability making him or her unable to work, and whose labor relationship is terminated.

Disability payments cannot exceed 80% of average earnings before disability.

Must have earned at least 20 quarters of required credit in the 10 years before disability.

Qualifying individuals may receive monthly payments of about $625.

Work-related tax deductions.

Must be a resident of Canada for income tax purposes.

Child tax benefits to families with one or more children under age 18. The basic annual benefit of $1,020 for each child. In Alberta, $935 to $1,205 depending on child’s age. In Quebec, $869 to $1,597 depending on child’s age.

Supplement of $75 for third and each additional child.
Supplement of $213 for each child under age 7.

Worker income supplement that depends on the number of children and the family’s employment income. 

For payments made after June 1997, the income supplement will be calculated as follows: 

•    One–child family:  $605 a year multiplied by the lesser of $10,000 and your family’s 1996 working income, minus $3,750, all divided by $6,250. The amount remaining is reduced by 12.1% of the amount that the family’s 1996 net income exceeds $20,291.
•    Two-child family:  $1,010 a year multiplied by the lesser of $10,000 and your family’s 1996 working income, minus $3,750, all divided by  $6,250.  The amount remaining is reduced by 20.2% of the amount that the family’s 1996 net income exceeds $20,921.
•    Three-or-more-child family:  $1,010 for the first 2 children plus $330 a year for each additional child, multiplied by the lesser of $10,000 and your family’s 1996 working income, minus $3,750, all divided by $6,250.  The total of all credits for eligible children will be totaled and reduced by 26.8% of the amount that the family’s 1996 net income exceeds $20,921.

Non-taxable income.
Cash tax credits.

All workers.

Tax credits for older and disabled people equal to 15 percent of tax payable.

65 years and older, or retired on permanent total disability.

Earned Income Credit for low-income families with children under specified age.

Must work and have earned income and have a Social Security Number (SSN) for you, your spouse (if filling a joint return) and your qualifying children.

Qualifying child: was (at the end of 1997) under age 19, under age 24 and a full-time student, or any age and permanently and totally disabled during the year.