How to qualify for the Canada Emergency Response Benefit

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Update for February 9, 2021
The government has reversed its position on who qualifies for CERB. If you had a gross income from employment and self-employment of at least $5,000, the CRA will consider you eligible for CERB - provided you meet all the other criteria - regardless of what your net income was. If you previously repaid CERB, the government will refund these repayments. This appears to only apply to those who already applied for and received CERB.

What is the CERB?

The Canada Emergency Response Benefit is a $2,000 a month benefit for people affected by COVID-19. It’s intended for people who don’t qualify for EI or who want to delay their EI. 

You can apply online or by phone, and you’ll get paid within 3-10 days. 

Each time you apply, it’ll be for a four week period between March 15 and October 3, and you can apply for up to 28 weeks (new as of August 20). 


Key takeaways 

  • The government announced you can receive income up to $1,000 per period and still be eligible. You’ll receive the flat $2,000 regardless of how much you make, up to the $1,000 threshold.


Am I eligible?

The wording of the legislation is unfortunately strict and doesn’t take into account the realities of self-employed people. What remains unclear is how strictly the government will enforce these requirements. Here are the criteria:

1) You need to be a “worker” - meaning age 15 or older, a Canadian resident, and you have more than $5,000 in income

  • The $5,000 of income is from either 2019 or the 12 months before you apply for the CERB. 

  • That income can come from employment, self-employment, EI benefits or provincial pregnancy/child care benefits.

2) You need to cease working because of COVID-19 for at least 14 consecutive days in your 4-week application period

  • This wording remains in the legislation, but the government has announced you’re eligible for the benefit if you received less than $1,000 in the period.

  • You need to cease working because of reasons related to COVID-19. That’s a broad definition that captures things like if your clinic shuts down (you can be either the owner or an associate), if you’re sick or quarantined, if you’re taking care of someone who’s sick or quarantined, or if you’re a parent who can’t work because you’re caring for your child who’s either sick or whose school is closed. This also includes employees who are laid off because of COVID-19.

  • The “cease working” requirement can apply to any 14 consecutive days in that four-week period. 

3) You can’t have received any income in that 14-day period

  • Specifically, you can’t have received any income from employment, self-employment, EI or provincial pregnancy/child care benefits. But, the government has announced you’re eligible for the benefit if you received less than $1,000 in the period.

  • Income from property, like investment income and rental property income, doesn’t count. 

  • The government has the right to either exclude certain types of income or add other types of income that could disqualify people. This is meant to guard against people “gaming” the benefit. 

Proposed penalties and other changes

The government has proposed certain penalties related to the CERB, but these have not yet been approved by Parliament. In our view, these penalties are extreme and potentially unconstitutional. Here’s a summary:

  • A penalty equal to 3 times the amount received for things like false or misleading representations, and not declaring all your income.

  • A penalty of up to $5,000, plus 2 times the amount received or up to 6 months imprisonment for things like false or misleading representations, and not declaring all your income

  • A penalty of up to $5,000 or up to 6 months imprisonment for obstructing an investigator

Other than penalties, other proposed changes include:

  • Shortening the application period to two weeks (from four) for applications from July 5 to October 3

  • Adding an additional exception that disqualifies you from receiving the CERB if you fail to return to work when it’s reasonable to do so, or fail to resume self-employment when it’s reasonable to do so