Can I work while on ODSP?

Yes. ODSP has employment income exemptions specifically designed to encourage work. You keep the first $1,000 per month of net employment income with no reduction. Above $1,000, earnings are reduced at 50 cents per dollar.

What is the ODSP employment income exemption for 2026?

For 2026, the basic monthly employment income exemption is $1,000. This means the first $1,000 of net employment earnings each month has no effect on your ODSP income support.

Does CPP disability income reduce ODSP?

Yes. CPP disability benefits count as unearned income and are deducted dollar for dollar from ODSP income support after a $6/month federal benefit exemption. Ontario coordinates ODSP with CPP disability amounts.

What happens to my ODSP health benefits if I earn too much?

If your employment income results in income support being reduced to zero, ODSP Extended Health Benefits may continue for up to 36 months to help with the transition to employment.

Does my spouse's income affect my ODSP?

Yes. ODSP treats your household unit together. A spouse or partner's income counts and can reduce your ODSP income support depending on household type and applicable exemptions.

How Much Can I Earn While on ODSP in Ontario?

ODSP and Employment Income: The Basics

Ontario Disability Support Program (ODSP) has an Employment Income Exemption that allows recipients to earn from work without immediately losing their full income support.

The basic rule:

First $1,000 per month of net employment income: fully exempt
Employment income above $1,000/month: 50 cents deducted per dollar earned
Unearned income (pension, investment): dollar for dollar deduction after small exemptions

Monthly Employment Earnings Scenarios

Monthly net employment earnings	ODSP income support reduction
$500	$0 — fully within $1,000 exemption
$1,000	$0 — at exemption limit
$1,200	$100 (50% of $200 above limit)
$1,500	$250 (50% of $500 above limit)
$2,000	$500 (50% of $1,000 above limit)

Example: Single ODSP recipient earning $1,400/month

Item	Amount
Monthly net employment income	$1,400
Employment exemption	−$1,000
Amount above exemption	$400
ODSP reduction (50 cents per $1)	−$200
Net ODSP impact	$200/month reduction

What “Net Employment Income” Means for ODSP

ODSP calculates earnings after deducting work-related costs. You can claim:

Work-related deduction	Example
Mandatory payroll deductions	CPP contributions, EI premiums, income tax withheld
Union dues	Membership fees
Childcare costs to enable work	Daycare, after-school care
Disability-related work expenses	Personal care, transportation, special equipment

These deductions are applied to your gross earnings before the $1,000 exemption test, meaning your effective exemption is higher in gross terms.

Types of Income and ODSP Rules

Income type	ODSP treatment
Employment wages	$1,000/mo exempt, then 50% clawback
Self-employment income (net)	$1,000/mo exempt, then 50% clawback
CPP disability benefits	Deducted dollar for dollar (after small exemption)
CPP retirement benefits	Deducted dollar for dollar
Private pension income	Unearned income — dollar for dollar deduction
RRSP/RRIF withdrawals	Unearned income — generally deducted
TFSA withdrawals	Generally exempt — ODSP policy generally excludes TFSA
Child support received	Counted as income — dollar for dollar
Gifts and one-time payments	May be counted as income depending on amount
Federal disability tax refund	Typically exempt
Canada Disability Benefit	Exempt (when fully implemented)

Health Benefits When Working

One of the biggest concerns for ODSP recipients considering work is losing prescription drug coverage and other health benefits.

ODSP addresses this:

Scenario	Health benefit status
Working with reduced income support	Health benefits continue fully
Income support reduced to zero by earnings	Extended Health Benefits for up to 36 months
Extended health benefits expire after 36 months	Review eligibility for other provincial programs

Employment-related health benefit suspension is one of the most important protections — the 36-month continuation period allows recipients to build employment stability without being immediately exposed to uninsured health costs.

Reporting Requirements

ODSP requires you to report any income changes within 10 days, including:

Starting a new job
A change in hours or pay
New self-employment activity
Any lump-sum payments (bonuses, settlements, inheritances)
CPP or other benefit changes

Failing to report accurately can result in overpayment recovery demands. ODSP may recalculate support retroactively and require repayment of any amounts received while unreported income existed.

Transitioning Off ODSP

If your income from work grows to the point where ODSP income support reaches zero for three or more consecutive months, you may be exited from the ODSP income support caseload. However:

You can reapply if earnings drop and you are still a person with a disability
Health benefits continue for 36 months under the Extended Health Benefits provision
Your ODSP file is not necessarily closed — your worker may keep it open depending on circumstances

Ontario Disability Support vs. Ontario Works

Program	Primary purpose	Employment income exemption
ODSP	Permanent or long-term disability	$1,000/month
Ontario Works (OW)	Employment-focused assistance	Lower — $200/month basic

If you are unsure which program you’re on, check your paperwork or call the Ontario Ministry of Children, Community and Social Services (toll-free: 1-888-789-4199).