Low income cut-offs (LICOs) before and after tax by community size and family size, in current dollars, annual.

Low income measure (LIM) thresholds by household size for market income, total income and after-tax income, in current and constant dollars, annual.

In 2022, 9.9 percent of all Canadians were living in low income. Between 2000 and 2022, the percentage of population with low income experienced a decrease, reaching the lowest value in 2020. The highest share of Canadians with low income was recorded in 2015, with 14.5 percent of the total population.

Low Income Measures

The low income measures (LIMs) were developed by Statistics Canada in the 1990s. They, along with the low income cut-offs (LICOs) and the market basket measure (MBM), were created in order to measure and track the low income population of Canada. With low income measures, individuals are classified as being in low income if their income falls below fifty percent of the median adjusted household income. The median income is adjusted in order to reflect the differing financial needs of households based on the number of its members. The low income measures are a useful tool to compare low income populations between countries as they do not rely on an arbitrary standard of what constitutes the threshold for poverty. Statistics Canada insists that the low income measures are not meant to be representative of a poverty rate. The department has no measure which they define as a measurement of poverty in Canada. Latest data and trends In 2022, around 2.1 million people were living in low income families in Canada. This figure has been fluctuating over the years, both in absolute numbers and in proportion over the total population. More women than men were living in low income families in 2022, though the number of men in low income has risen at twice the rate as that of women. One of the more drastic changes has been the rise in the number of single individuals living in low income, increasing by more than 60 percent since 2000.

If you’re a senior with low income, you may qualify for monthly Guaranteed Annual Income System payments.

Maximum payment and allowable private income amounts for the period from July 1, 2025 to June 30, 2026 are:

• $90 monthly for single seniors (maximum monthly payment amount), your annual private income must be less than $4,320
• $180 monthly for senior couples (maximum monthly payment amount), your annual private income must be less than $8,640

The data is organized by private income levels. GAINS payments are provided on top of the Old Age Security (OAS) pension and the Guaranteed Income Supplement (GIS) payments you may receive from the federal government.

Learn more about the Ontario Guaranteed Annual Income System

This data is related to The Retirement Income System in Canada

Join the Ontario Ministry of Finance for a free webinar to help you learn about tax credits, benefits, and other programs available to support Ontario seniors with a low income. Visit ontario.ca/TaxTalk to learn more.

Number of persons in low income, low income rate and average gap ratio by age, sex and economic family type, annual.

About Employment Service

Employment Service (ES) is one component of the suite of services known as Employment Ontario (EO). ES provides Ontarians with access to all the employment services and supports they need in one location, so they can find and keep a job, apply for training, and plan a career that’s right for them. The goal of the ES program is to help Ontarians find sustainable employment.

Employment Service is delivered by third-party service providers at service delivery sites (SDS) across Ontario on behalf of the Ministry of Labour, Training and Skills Development (MLTSD). The services provided by ES are tailored to meet the individual needs of each client and can be provided one-on-one or in a group format.

Employment Service has two broad categories: unassisted and assisted services.

Unassisted services, or the Resource and Information (RI) service component, provides individuals with information on local training and employment opportunities, community service supports, and resources to support independent or “unassisted” job search. These services can be delivered through structured orientation or information sessions (on or off site), e-learning sessions, or one-to-one sessions up to two days in duration. The RI component also helps employers to attract and recruit employees and skilled labour by posting positions and offering opportunities to participate in job fairs and other community events.

This service component is available to all Ontarians as there are no eligibility or access requirements.

Assisted services are offered to individuals who display the need for more intensive, structured, and/or one-on-one employment supports, and includes the following components:

·
job search assistance (including individualized assistance in career goal setting, skills assessment, and interview preparation)

·
job matching, placement and incentives (which match client skills and interested with employment opportunities, and include placement into employment, on-the-job training opportunities, and incentives to employers to hire ES clients), and

·
job training/retention (which supports longer-term attachment to or advancement in the labour market or completion of training)

The service provider will develop with the assisted services client an ES service plan – and will monitor, evaluate, and adjust this plan over the duration of the service plan.

To be eligible for assisted services, clients must be unemployed (defined as working less than twenty hours a week) and not participating in full-time education or training. Clients are also assessed on a number of suitability indicators covering economic, social and other barriers to employment, and service providers are to prioritize serving those clients with multiple suitability indicators.

About ES Service Provider Funding

Service providers that deliver Employment Service sign agreements with MLTSD that cover individual fiscal years (defined as April 1st to March 31st). These agreements specify at which service delivery site(s) the service provider agrees to provide ES, the performance expectations for each service delivery site (SDS), and the funding that MLTSD will provide to the service provider to deliver ES at each SDS.

Funding for ES is provided through two budget categories: operating funds and flow-through funds, with the latter further divided between Employment and Training Incentives for Employers and Employment and Training Supports for Clients/Participants. These three budget lines cover the normal costs of delivering all aspects of ES for both unassisted and assisted clients; for exception one-off expenditures, such as relocation, service providers can apply for Field Supports, which is the fourth and final budget line. Please see below for additional details on each of these four budget lines:

1. Operating Funds are for the direct delivery of all of the components of ES (unassisted and assisted). Costs related to the provision of the ES that would be considered part of a service delivery site’s day-to-day operations include, but are not limited to:

·
staff and management salaries;

·
hiring and training of staff (including professional development);

·
marketing (signage, paper/web ads, outreach, etc.);

·
facilities (rent);

·
facilities (mortgage payments) ONLY the interest portion of a mortgage payment is allowed as an Operating cost;

·
other direct operating expenditures related to the delivery of the Employment Service.

Service delivery sites are able to attribute no more than 15% of their operating funds for administrative overhead. Administrative overhead recognizes costs necessary for operating an organization but not directly associated with the delivery of the Employment Service. For example, a portion of the salaries/benefits of the Executive Director, IT, and/or financial staff who work for the entire organization but may spend a portion of their time dedicated to administrative functions that support ES. Note that Operating Funds cannot be used for termination and severance costs.

1. Employment and Training Incentives for Employers are funds for employers to provide employment and on-the-job training opportunities in ES (up to $8,000 per person. The $8,000 is made up of a maximum of $6,000 for training incentives and an additional $2,000 for the Apprenticeship Employer Signing Bonus, if applicable).

2. Employment and Training Supports for Clients/Participants are funds for Clients/Participants in assisted components (up to $500 per Client/Participant). These supports are determined based on family income and are intended, on a temporary basis, to help Clients/Participants address any financial barriers to participation in ES. Client eligibility for these supports is determined on the basis of need and the Low-Income Cut-offs (LICO) income value for the locality. Supports can cover costs such as:

·
transportation;

·
work clothing or clothing/grooming needed to achieve credibility;

·
special equipment, supplies and equipment;

·
certification charges (that may be applied to some short term courses);

·
short term training costs such as books, materials;

·
emergency or infrequent child care;

·
language skills assessment/academic credential assessment;

·
translation of academic documents (for internationally trained individuals);

·
workplace accommodation needs for persons with disabilities.

1. Field Supports are funds that may be provided through a formal in-year request to support ES Recipients with one-time exceptional expenditures not normally included as part of ongoing operations. Requests will be reviewed on a case by case basis and approved at the sole discretion of the Ministry. Purchases related to Field Support cannot be made without prior written approval from the Ministry.

Service providers have discretion over the use of their funds within the following parameters:

·
Operating funds are allocated against an identified level of service;

·
In situations of co-location of ES with other programs and services, ES funds must only be used to cover costs directly related to the delivery of ES;

·
Operating funds cannot be used for major capital expenditures, such as the purchase or construction of facilities. Purchase of equipment and furniture directly related to the effective delivery of the contracted program is allowable;

·
A service provider must obtain prior written approval from the Ministry to shift funds between service delivery sites or communities;

·
A service provider must not transfer funds between the four budget lines given above unless it obtains the prior written consent of the Ministry; and

·
A service provider should not anticipate additional funds, although the Recipient should discuss any issues with the Ministry.

A funding model is used to determine funding levels for the Operating Funds budget line. This model is based on the target number of assisted services clients that each service delivery site agrees to serve in that fiscal year. Note that no targeted funds are provided to deliver unassisted services; these are to be funded out of the allocation provided to service delivery sites on the basis of their target number of assisted services clients.

The ES funding model allocates resources in five ranges based on the target amount of assisted services client the service delivery site is to achieve. For each range there is a sliding scale of possible funding amounts per assisted services client, and service delivery sites with higher assisted service client targets generally receive lower per client funding, on the basis that larger service delivery sites are able to achieve economies of scale. Also note that because of this graduated approach to ES funding it is possible that a service delivery site that has its assisted services client target increase may actually receive less overall funding if the target increase shifts it from one range to the next.

The five funding ranges are:

A/S Client Target

Funding Range per A/S Client

Up to 399

$1,000 to $2,950

400 to 899

$925 to $2,100

900 to 1,499

$850 to $1,200

1,500 to 1,999

$795 to $1,000

2,000 and Above

$795

The actual funding amount per assisted services client within each range is determined by reference to two groups of indicators: Location and Labour Market Environment. A service delivery site is assessed against each indicator, and within each group the number of indicators that are assessed as valid/true is totaled. The value, along with the assisted services client target, is then compared to a table to determine the funding value for Location

The household incomes chart shows how many household fall in each of the income brackets specified by Statistics Canada.

The household incomes chart shows how many household fall in each of the income brackets specified by Statistics Canada.

About Employment Service

Employment Service (ES) is one component of the suite of services known as Employment Ontario (EO). ES provides Ontarians with access to all the employment services and supports they need in one location, so they can find and keep a job, apply for training, and plan a career that’s right for them. The goal of the ES program is to help Ontarians find sustainable employment.

Employment Service is delivered by third-party service providers at service delivery sites (SDS) across Ontario on behalf of the Ministry of Labour, Training and Skills Development (MLTSD). The services provided by ES are tailored to meet the individual needs of each client and can be provided one-on-one or in a group format.

Employment Service has two broad categories: unassisted and assisted services.

Unassisted services, or the Resource and Information (RI) service component, provides individuals with information on local training and employment opportunities, community service supports, and resources to support independent or “unassisted” job search. These services can be delivered through structured orientation or information sessions (on or off site), e-learning sessions, or one-to-one sessions up to two days in duration. The RI component also helps employers to attract and recruit employees and skilled labour by posting positions and offering opportunities to participate in job fairs and other community events.

This service component is available to all Ontarians as there are no eligibility or access requirements.

Assisted services are offered to individuals who display the need for more intensive, structured, and/or one-on-one employment supports, and includes the following components:

·
job search assistance (including individualized assistance in career goal setting, skills assessment, and interview preparation)

·
job matching, placement and incentives (which match client skills and interested with employment opportunities, and include placement into employment, on-the-job training opportunities, and incentives to employers to hire ES clients), and

·
job training/retention (which supports longer-term attachment to or advancement in the labour market or completion of training)

The service provider will develop with the assisted services client an ES service plan – and will monitor, evaluate, and adjust this plan over the duration of the service plan.

To be eligible for assisted services, clients must be unemployed (defined as working less than twenty hours a week) and not participating in full-time education or training. Clients are also assessed on a number of suitability indicators covering economic, social and other barriers to employment, and service providers are to prioritize serving those clients with multiple suitability indicators.

About ES Service Provider Funding

Service providers that deliver Employment Service sign agreements with MLTSD that cover individual fiscal years (defined as April 1st to March 31st). These agreements specify at which service delivery site(s) the service provider agrees to provide ES, the performance expectations for each service delivery site (SDS), and the funding that MLTSD will provide to the service provider to deliver ES at each SDS.

Funding for ES is provided through two budget categories: operating funds and flow-through funds, with the latter further divided between Employment and Training Incentives for Employers and Employment and Training Supports for Clients/Participants. These three budget lines cover the normal costs of delivering all aspects of ES for both unassisted and assisted clients; for exception one-off expenditures, such as relocation, service providers can apply for Field Supports, which is the fourth and final budget line. Please see below for additional details on each of these four budget lines:

1. Operating Funds are for the direct delivery of all of the components of ES (unassisted and assisted). Costs related to the provision of the ES that would be considered part of a service delivery site’s day-to-day operations include, but are not limited to:

·
staff and management salaries;

·
hiring and training of staff (including professional development);

·
marketing (signage, paper/web ads, outreach, etc.);

·
facilities (rent);

·
facilities (mortgage payments) ONLY the interest portion of a mortgage payment is allowed as an Operating cost;

·
other direct operating expenditures related to the delivery of the Employment Service.

Service delivery sites are able to attribute no more than 15% of their operating funds for administrative overhead. Administrative overhead recognizes costs necessary for operating an organization but not directly associated with the delivery of the Employment Service. For example, a portion of the salaries/benefits of the Executive Director, IT, and/or financial staff who work for the entire organization but may spend a portion of their time dedicated to administrative functions that support ES. Note that Operating Funds cannot be used for termination and severance costs.

1. Employment and Training Incentives for Employers are funds for employers to provide employment and on-the-job training opportunities in ES (up to $8,000 per person. The $8,000 is made up of a maximum of $6,000 for training incentives and an additional $2,000 for the Apprenticeship Employer Signing Bonus, if applicable).

2. Employment and Training Supports for Clients/Participants are funds for Clients/Participants in assisted components (up to $500 per Client/Participant). These supports are determined based on family income and are intended, on a temporary basis, to help Clients/Participants address any financial barriers to participation in ES. Client eligibility for these supports is determined on the basis of need and the Low-Income Cut-offs (LICO) income value for the locality. Supports can cover costs such as:

·
transportation;

·
work clothing or clothing/grooming needed to achieve credibility;

·
special equipment, supplies and equipment;

·
certification charges (that may be applied to some short term courses);

·
short term training costs such as books, materials;

·
emergency or infrequent child care;

·
language skills assessment/academic credential assessment;

·
translation of academic documents (for internationally trained individuals);

·
workplace accommodation needs for persons with disabilities.

1. Field Supports are funds that may be provided through a formal in-year request to support ES Recipients with one-time exceptional expenditures not normally included as part of ongoing operations. Requests will be reviewed on a case by case basis and approved at the sole discretion of the Ministry. Purchases related to Field Support cannot be made without prior written approval from the Ministry.

Service providers have discretion over the use of their funds within the following parameters:

·
Operating funds are allocated against an identified level of service;

·
In situations of co-location of ES with other programs and services, ES funds must only be used to cover costs directly related to the delivery of ES;

·
Operating funds cannot be used for major capital expenditures, such as the purchase or construction of facilities. Purchase of equipment and furniture directly related to the effective delivery of the contracted program is allowable;

·
A service provider must obtain prior written approval from the Ministry to shift funds between service delivery sites or communities;

·
A service provider must not transfer funds between the four budget lines given above unless it obtains the prior written consent of the Ministry; and

·
A service provider should not anticipate additional funds, although the Recipient should discuss any issues with the Ministry.

A funding model is used to determine funding levels for the Operating Funds budget line. This model is based on the target number of assisted services clients that each service delivery site agrees to serve in that fiscal year. Note that no targeted funds are provided to deliver unassisted services; these are to be funded out of the allocation provided to service delivery sites on the basis of their target number of assisted services clients.

The ES funding model allocates resources in five ranges based on the target amount of assisted services client the service delivery site is to achieve. For each range there is a sliding scale of possible funding amounts per assisted services client, and service delivery sites with higher assisted service client targets generally receive lower per client funding, on the basis that larger service delivery sites are able to achieve economies of scale. Also note that because of this graduated approach to ES funding it is possible that a service delivery site that has its assisted services client target increase may actually receive less overall funding if the target increase shifts it from one range to the next.

The five funding ranges are:

A/S Client Target

Funding Range per A/S Client

Up to 399

$1,000 to $2,950

400 to 899

$925 to $2,100

900 to 1,499

$850 to $1,200

1,500 to 1,999

$795 to $1,000

2,000 and Above

$795

The actual funding amount per assisted services client within each range is determined by reference to two groups of indicators: Location and Labour Market Environment. A service delivery site is assessed against each indicator, and within each group the number of indicators that are assessed as valid/true is totaled. The value, along with the assisted services client target, is then compared to a table to determine the funding value for Location

The household incomes chart shows how many household fall in each of the income brackets specified by Statistics Canada.

Market Basket Measure (MBM) thresholds for the reference family by MBM region and base year. Total thresholds as well as thresholds for the food, clothing, transportation, shelter and other expenses components are presented, in current and constant dollars, annual.