Ill for one week during the year. Single APW

The gross wage is reduced by 1/52, i.e. 662 CAD. The compensation is 55 per cent of the lost income, but with a waiting period of 2 weeks in the scheme there is no compensation. The rules are contained in the Employment Insurance scheme. Maxi-mum insurable earnings are 39,000 CAD in 1997.

The gross compensation percentage is 0. The disposable income of the APW who is ill for one week is 24,776 CAD in 1997.

The decrease in disposable income compared to the situation with no illness is 25,150 - 24,776 = 374 CAD or 1.5 per cent.

There are no general labour market agreements for cover in case of illness, but there are supplementary benefits from some large corporations.

2. Unemployed for 3 months during the year, insured. Single APW

The gross wage of the insured APW is reduced by 1/4, i.e. 8,603 CAD. The com-pensation is 55 per cent of the lost income according to the Employment Insurance scheme. For 13 weeks with a waiting period of 2 weeks the compensation is 11/13

× 0.55 × 8,603 = 4,004 CAD. Maximum insurable earnings are 39,000 CAD in 1997.

The gross compensation percentage is 4,004 / 8,603 × 100 = 46.5. The disposable income of the APW with 25 per cent unemployment is 22,735 CAD in 1997.

The decrease in disposable income compared to the situation with no unemployment is 25,150 - 22,735 = 2,415 CAD or 9.6 per cent.

3. Unemployed for the whole year, insured. Single APW

There is no gross wage. The maximum benefit period is 45 weeks (varies across the provinces according to the unemployment level), but 45 weeks is the longest benefit period. The compensation is 55 per cent of the lost income in 45 weeks, i.e. 45/52 × 0.55 × 34,412 = 16,379 CAD. There are first 2 weeks (waiting period) with no compensation, then 45 weeks with compensation from the Employment Insurance scheme, and in the end 5 weeks with social assistance. Social assistance is 195 CAD/month (rate for the province of Ontario) for a single person (not including housing coverage), i.e. 225 CAD for 5 weeks. Social assistance (S.A.) is not taxable (this is the case in all provinces except Quebec). The total compensation is 16,379 CAD from the employment insurance and 225 CAD from S.A., in total 16,604 CAD.

The gross compensation percentage is 16,604 / 34,412 × 100 = 48. The disposable income of the APW who is unemployed for the whole year is 14,088 CAD in 1997.

The decrease in disposable income compared to the situation with no unemployment is 25,150 - 14,088 = 11,062 CAD or 44.0 per cent.

4. Unemployed for 3 months during the year, not eligible for insurance.

Single APW

The reduction of the gross wage is 8,603 CAD just as in case 2 (3 months of unem-ployment). It is assumed that the unemployed receives social assistance during the unemployment period.

The monthly rate for a single person is 195 CAD (cf. also case 3), i.e. 585 CAD in compensation for three months (housing allowances are not included).

The gross compensation percentage is 585 / 8,603 × 100 = 7. Disposable for an APW with 3 months of unemployment receiving social assistance is 20,373 CAD.

The decrease in disposable income compared to the situation with no unemployment is 25,150 - 20,373 = 4,777 CAD or 19.0 per cent.

5. Unemployed for the whole year, not eligible for insurance. Single APW

There is no gross wage. The compensation is 12 × 195 = 2,340 CAD on the assump-tion that the unemployed single person receives social assistance during the unem-ployment period.

The gross compensation percentage is 2,340 / 34,412 × 100 = 7. Social assistance is not taxable so the disposable income is 2,340 CAD (excluding housing allowances).

The decrease in disposable income compared to the situation with no unemployment is 25,160 - 2,340 = 22,810 or 90.7 per cent.

The single unemployed recipient of social assistance would also be eligible for a (non taxable) housing allowance of 325 CAD/month. The personal as well as the housing allowance increase with family size. A couple (no children) receives 390 CAD/month in personal allowances and 511 CAD/month in housing allowance.

6. Wife unemployed for the whole year, insured. APW couple

There is no gross wage for the wife. The maximum benefit period for a person work-ing part time (here 50 per cent) is 39 weeks (varies across the provinces accordwork-ing to the unemployment level), but 39 weeks is the longest benefit period. The compensa-tion is 55 per cent of the lost income in 39 weeks, i.e. 39/52 × 0.55 × 17,206 = 7,097 CAD. There are first 2 weeks (waiting period) with no compensation, then 39 weeks with compensation from the Employment Insurance. There is no compensation from social assistance for the remaining time (11 weeks), because it is means tested to 0 against the husband's income from work. Total compensation is 7,097 CAD.

The gross compensation percentage is 7,097 / 17,206 × 100 = 41. The disposable income for the APW-couple is 32,084 CAD, when the wife is unemployed for the whole year in 1997 and usually is working part time.

The decrease in disposable income compared to the situation with no unemployment is 38,921 - 32,084 = 6,837 CAD or 17.6 per cent.

7. Injured from work. Single APW

The effects of injuries from work are studied in two cases. In the first there is a com-plete loss of working capability. In the second the working capability is reduced by 33.3 per cent. Only current benefits are considered. The Canadian cases are based on the legislation for the Ontario Province.

1. Working capability completely lost

There is no gross wage. The compensation is 90 per cent of the lost income after tax and social contributions up to a ceiling, which in 1997 corresponds to a gross wage of 55,600 CAD. The compensation (in Ontario) is .9 × 25,150 = 22,635 CAD which is also the disposable income.

The net compensation percentage is thus 90.

The decrease in disposable income is 25,150 - 22,635 = 2,515 CAD or 10.0 per cent compared to the situation with no injuries.

2. Loss of 1/3 of the working capability

The gross wage is reduced by 1/3, i.e. 11,471 CAD. The compensation would be approx. 1/3 of that in case 7.1, i.e. 7,545 CAD.

The net compensation percentage is thus 90. The disposable income is 25,327 CAD in case of loss of 1/3 of the working capability (disregarding lump sum payments).

The increase in disposable income is 25,327-25,150 = 177 CAD or 0.7 per cent compared to the situation with no injuries. The positive effect is because of the progression in the Canadian tax scheme.

8. Disability pensioner with former working record and income at APW-level. Single APW

The Canadian disability pensioner who is eligible for benefits from the CPP will receive a benefit with two components, an earnings related and a flat rate. The earnings related component is 75 per cent of the corresponding' retirement pension.

The retirement pension for the APW is estimated to 96 per cent of the max. pension in 1997, i.e. 0.96 × 8,842 = 8,488 CAD, cf. case 11. The earnings related component will be .75 × 8,488 = 6,366 CAD. The flat rate component is 3,966 CAD in 1997, in total 10,332 CAD. This is also the disposable income, because the tax credits more than outweigh the gross tax liability.

The net compensation percentage is 10,332 / 25,150 × 100 = 41.1.

The decrease in disposable income compared with the situation without disability is 58.9 per cent.

9. Disability pensioner without former working record. Single APW'

A disabled person in Canada with no former working record would not be eligible for CPP. He will instead receive a social assistance benefit of 516 CAD / month in 1997. To this a benefit for shelter will be added. The total benefit (excluding shelter) would be 6,192 CAD in 1997. The benefit is taxfree, so the disposable income is also 6,192 CAD.

The net compensation percentage' (relative to the APW) is 6,192 / 25,150 × 24.6.

The decrease' in disposable income, relative to that of the APW, would be 75.4 per cent.

10. Wife disability pensioner. APW-couple

It is assumed that the wife in the APW-couple becomes a disability pensioner while the husband continues to work (APW income level). The wife has a working record earning ½ APW income. There are, cf. case 8, two components in the CPP for disability pensioners, an earnings related and a flat rate. The earnings related compo-nent is 75 per cent of the corresponding' retirement pension, i.e. 50 per cent of the disability pension in case 8, 3,183 CAD. The flat rate component is 3,966 CAD, in total 7,149 CAD, which will also be the disposable income of the wife.

The gross compensation percentage is 7,149 / 17,206 × 100 = 42. The disposable income of the APW-couple is 32,299 CAD, when the wife becomes a disability pensioner in 1997.

The decrease in income compared to the situation with no disability is 38,921 -32,299 = 6,622 CAD or 17.0 per cent.

11. Pensioner with maximum period of former occupation. Single APW