To obtain the net income, the amounts prescribed by the Framework Policy are subtracted from the total income of each parent. These deductions vary according to the parents’ situation (cohabitation, no cohabitation, untraceable or deceased). These deductions also vary according to the chosen method of calculation:
OPTION 1
When the parents cohabit, the net income is the sum of the income of both parents, after an amount of $17,606 is subtracted from the total. If the parents cohabit and only one parent contributes to the parental
contribution, an amount of $17,606 is subtracted from that parent’s income.
When the parents do not cohabit, the net income is the sum of each parent’s individual income, after an amount of $12,349 is subtracted from each parent’s income.
When one parent is untraceable or deceased, the net income is the total income of the other parent, after an amount of $12,349 is subtracted from that parent’s income.
The amount of the parental contribution is determined to be 40% of the net income, divided by 12 (i.e. over 12 months). For parents who report an income level less than the Low Income Measure (see section 18.1.1.12) the amount of the parental contribution is determined to 20% of the net income.
Finally, the amount of the parental contribution is divided by the number of adult income security clients who are deemed to receive a parental contribution from either parent.
The parental contribution is calculated using the following equation:
- 40% (income of father and mother – amount(s) to subtract pursuant to the Framework Policy) or 20% (if the parent's reported income is less than the LIM) DIVIDED BY 12
- It is then carried out on a monthly basis and divided by 12.
- The result is divided by the number of adult income security clients who are deemed to receive a parental contribution from either parent.
OPTION 2
When the parents cohabit, the net income is the sum of the income of both parents, after an amount of $32,233 is subtracted from the total. If the parents cohabit and only one parent contributes to the parental contribution, an amount of $32,233 is subtracted from that parent’s income.
When the parents do not cohabit, the net income is the sum of each parent’s individual income, after an amount of $26,310 is subtracted from each parent’s income.
It is then carried out on a monthly basis and divided by 12.
The result is divided by the number of adult income security clients who are deemed to receive a parental contribution from either parent.
Parental contribution (OPTION 2) is equal to the result obtained from the following equation:
A) Add the reported incomes of the mother and the father
B)
Subtract $32,233 if the parents cohabit
Subtract $26,310 if the parents do not cohabit
Subtract $26,310 if one of the parents is deceased, untraceable or unknown
C) DIVIDED BY 12
The parental contribution is a MONTHLY AMOUNT.
When basic monthly benefits are reduced because an adult cohabits with his father or mother (for more information on family solidarity, see section 18.4.2) and the adult is deemed to receive a parental contribution, the amount of benefits is reduced by up to $100, regardless of which parent the client is living with.
EXAMPLE
- A client is deemed to receive a parental contribution of $150. If the client’s basic monthly benefits are reduced by $100 because he lives with the father and/or mother, an amount of $50 will be calculated as a parental contribution.
- A client is deemed to receive a parental contribution of $75. If the basic monthly benefits are reduced by $100, the parental contribution will not be considered.
Cohabitation is not deemed to exist in cases where one parent is helping the other or the parents are helping one another. However, this situation must be temporary. (For example, the parents cohabit temporarily because one of the parents or their child has a serious health issue.)