Stop Penalizing People with Disabilities for Working

The Issue

We, the people receiving the Ontario Disability Support Program (ODSP), call on the Government of Ontario to take urgent action to reform ODSP employment earnings rules that can leave people with disabilities financially disadvantaged when they try to work and increase their income.

People with disabilities should not have to choose between maintaining essential disability supports and pursuing employment, gaining experience, becoming more financially independent, and building a stable future.

The Current Problem

ODSP currently allows recipients to earn up to $1,000 per month before their ODSP income support is reduced. Once earnings exceed $1,000 per month, ODSP reduces income support by 50 cents for every additional dollar earned.

Although this is an improvement over the previous $200 earnings exemption, the current system can still create a significant financial barrier for people who want to work more hours or increase their income.

For example:

If someone earns $1,400 in a month, the portion above $1,000 is $400. A 50% reduction would mean a $200 reduction in ODSP income support.
If someone earns $2,000 in a month, the portion above $1,000 is $1,000. A 50% reduction would mean a $500 reduction in ODSP income support.
While working still increases total income, the amount a person gains from additional employment can be substantially reduced.

The Human Impact

People with disabilities often face additional costs related to transportation, housing, food, medical needs, accessibility, personal supports, and other everyday expenses.

For someone living on a limited income, every dollar matters.

The current earnings rules can make taking on additional work feel financially risky, particularly for people whose health, disability, energy, or ability to work can fluctuate.

A person should not be discouraged from accepting more hours, pursuing a better job, or building their career because doing so could result in a significant reduction in the supports they rely on.

Employment should be a pathway toward greater independence — not a financial penalty.

What Needs to Change

We believe ODSP recipients should be able to keep significantly more of the income they earn through employment.

We are calling on the Government of Ontario to reform the earnings rules so that recipients keep at least 75% of every dollar earned above the current $1,000 monthly exemption.

This would:

Make additional work more financially worthwhile.
Encourage employment and career development.
Help people with disabilities build savings and financial stability.
Reduce barriers to greater independence.
Better recognize the additional costs many people with disabilities face.
Demonstrate that Ontario values inclusion, dignity, and meaningful participation in the workforce.
Our Demands

We, the undersigned, call on the Government of Ontario to:

Reduce the ODSP earnings clawback rate so recipients keep at least 75% of every dollar earned above the $1,000 monthly exemption.
Increase the earnings exemption to better reflect Ontario’s current cost of living and the real financial needs of people with disabilities.
Consult directly with ODSP recipients and disability advocates when developing and changing employment and income-support policies.
Ensure that employment pays, so that people are financially encouraged — rather than discouraged — from working more when they are able.
Protect access to essential disability supports while allowing recipients to increase their employment income and move toward greater financial independence.
Conclusion

People with disabilities deserve the opportunity to work, earn income, gain experience, build careers, and improve their financial stability without being unfairly penalized for doing so.

ODSP should support people as they move toward greater independence — not create financial barriers that make working more difficult.

Ontario must reform ODSP earnings rules so that work truly pays.

We demand meaningful change.

Let people with disabilities work, earn, save, and build better lives without being punished for trying.