Dictionary, Census of Population, 2021
Appendix 2.4
Components of income in 2020

Definitions of the components of income:

Market income – The sum of employment income (wages, salaries and commissions, net self‑employment income from farm or non‑farm unincorporated business and/or professional practice), investment income, private retirement income (retirement pensions, superannuation and annuities, including those from registered retirement savings plans [RRSPs] and registered retirement income funds [RRIFs]) and other income from market sources during the reference period. It is equivalent to total income minus government transfers. It is also referred to as income before transfers and taxes.

Employment income – All income received as wages, salaries and commissions from paid employment and net self‑employment income from farm or non‑farm unincorporated business and/or professional practice during the reference period.

Wages, salaries and commissions – Gross wages and salaries before deductions for such items as income taxes, pension plan contributions and employment insurance premiums during the reference period. While other employee remuneration such as security options benefits, board and lodging and other taxable allowances and benefits are included in this source, employer's contributions to pension plans and employment insurance plans are excluded. Other receipts included in this source are military pay and allowances, tips, commissions and cash bonuses associated with paid employment, benefits from wage‑loss replacement plans or income‑maintenance insurance plans, supplementary unemployment benefits from an employer or union, research grants, royalties from a work or invention with no associated expenses and all types of casual earnings during the reference period.

Net self‑employment income – Net income (gross receipts minus cost of operation and capital cost allowance) received during the reference period from self‑employment activities, either on own account or in partnership. In the case of partnerships, only the person's share of income is included. Net partnership income of a limited or non‑active partner is excluded. It includes farming income, fishing income and income from unincorporated business or professional practice. Commission income for a self‑employed commission salesperson and royalties from a work or invention with expenses associated are also included in this source.

Investment income – Income received during the reference period in the form of interest from deposits in banks, trust companies, co‑operatives, credit unions, caisses populaires, etc., interests on savings certificates, bonds and debentures, dividends from both Canadian and foreign stocks, net rental income from real estate, mortgage and loan interest received, regular income from an estate or trust fund, interest from insurance policies, and net partnership income for a limited or non‑active partner. This variable does not include net capital gains or losses as they are not part of the standard income definition.

Private retirement income – All regular income received during the reference period associated with employer or personal retirement pensions, benefits or savings plans. It includes payments received from all annuities, including payments from employer's registered retirement plans (RPP), pooled registered pension plans (PRPP) and matured registered retirement savings plans (RRSP) in the form of a life annuity, a fixed‑term annuity, a registered retirement income fund (RRIF) or an income‑averaging annuity contract; pensions paid to widow(er)s or other relatives of deceased pensioners; pensions of retired civil servants, Canadian Forces personnel and Royal Canadian Mounted Police (RCMP) officers; annuity payments received from the Canadian Government Annuities Fund, an insurance company, etc. It does not include lump‑sum death benefits, lump‑sum benefits or withdrawals from a pension plan or RRSP or refunds of over‑contributions.

Market income not included elsewhere – Regular cash income from market sources that are not included in any of the other market income sources during the reference period. For example, severance pay and retirement allowances, alimony or child support received, periodic support from other persons not in the household, any income from abroad that is not investment income, scholarships, bursaries, fellowships and study grants, and artists' project grants are included.

Government transfers – All cash benefits received from federal, provincial, territorial or municipal governments during the reference period. It includes:

• Old Age Security pension, Guaranteed Income Supplement, Allowance and Allowance for the Survivor
• retirement, disability and survivor benefits from Canada Pension Plan and Québec Pension Plan
• benefits from Employment Insurance and Québec Parental Insurance Plan
• child benefits from federal and provincial programs
• social assistance benefits
• workers' compensation benefits
• Canada workers benefit
• Goods and services tax credit and harmonized sales tax credit
• other income from government sources

Old Age Security pension (OAS) and Guaranteed Income Supplement (GIS) – Old Age Security pension and Guaranteed Income Supplements paid to persons aged 65 years and over, and to the Allowance and Allowance for the Survivor paid to 60‑ to 64‑year‑old spouses of old age security recipients or widow(er)s by the federal government during the reference period.

Old Age Security pension (OAS) – Old Age Security pension paid to persons aged 65 years and over by the federal government during the reference period. The Guaranteed Income Supplement, Allowance and Allowance for the Survivor are excluded.

Guaranteed Income Supplement (GIS) and spousal allowance – Guaranteed Income Supplement paid to persons aged 65 years and over, and to the Allowance and Allowance for the Survivor paid to 60‑ to 64‑year‑old spouses of old age security recipients or widow(er)s by the federal government during the reference period.

Canada Pension Plan (CPP) and Québec Pension Plan (QPP) benefits – Benefits received during the reference period from the Canada Pension Plan or Québec Pension Plan in the form of retirement pensions, survivors' benefits and disability benefits. It does not include lump‑sum death benefits.

Canada Pension Plan (CPP) and Québec Pension Plan (QPP) - Retirement benefits – Retirement benefits received during the reference period from the Canada Pension Plan or Québec Pension Plan.

Canada Pension Plan (CPP) and Québec Pension Plan (QPP) - Disability benefits – Disability benefits received during the reference period from the Canada Pension Plan or Québec Pension Plan.

Canada Pension Plan (CPP) and Québec Pension Plan (QPP) - Survivor benefits – Regular benefits received by surviving spouse or common‑law partner, children or estate of a deceased Canada Pension Plan or Québec Pension Plan contributor during the reference period from the Canada Pension Plan or Québec Pension Plan. Does not include lump‑sum death benefits.

Employment Insurance (EI) benefits – All Employment Insurance benefits received during the reference period, before income tax deductions. It includes benefits for unemployment, sickness, maternity, paternity, adoption, compassionate care, work sharing, retraining and benefits to self‑employed fishers received under the federal Employment Insurance Program or the Québec Parental Insurance Plan.

Employment Insurance (EI) - Regular benefits – Regular benefits for unemployment received under the federal Employment Insurance Program during the reference period, before income tax deductions.

Employment Insurance (EI) - Other benefits – Benefits for sickness, maternity, paternity, adoption, compassionate care, work sharing, retraining and benefits to self‑employed fishers received under the federal Employment Insurance Program or the Québec Parental Insurance Plan during the reference period, before income tax deductions.

Child benefits – Payments received by parents or guardians with dependent children from various federal, provincial and territorial child benefit programs during the reference period.

Federal child benefits – Federal child benefits received by parents or guardians with dependent children during the reference period.

Provincial and territorial child benefits – Provincial and territorial child benefits received by parents or guardians with dependent children during the reference period. Some of these programs include a basic benefit amount as well as an earned income supplement.

Other government transfers – All government transfers received during the reference period other than those from the following sources:

• Old Age Security pension, Guaranteed Income Supplement, Allowance or Allowance for the Survivor
• retirement, disability and survivor benefits from Canada Pension Plan and Québec Pension Plan
• benefits from Employment Insurance and Québec parental insurance plan
• child benefits from federal and provincial programs

The key components of this variable are social assistance benefits, workers' compensation benefits, Canada workers benefit, goods and services tax credit and harmonized sales tax credit, refundable provincial tax credits, provincial income supplements for seniors, other provincial credits, benefits and rebates, government emergency response funds, veterans' pensions, war veterans' allowance, and pensions to widow(er)s and dependants of veterans.

Social assistance benefits – All social assistance payments received by persons in need during the reference period. On the basis of need, eligible social assistance recipients may receive assistance to cover the cost of food, shelter, clothing and other daily necessities. Other allowances may also be granted to persons with special needs or circumstances, such as elderly persons, persons with disabilities, single‑parent families and persons with barriers to employment.

Workers' compensation benefits – All benefits received from federal, provincial, territorial or municipal workers' compensation programs during the reference period due to work‑related injuries or disabilities.

Canada workers benefit (CWB) – Refundable tax credits received under the Canada workers benefit (CWB) program for the reference period. These benefits vary by provinces and territories and are intended to provide tax relief for eligible low‑income individuals and families who are in the workforce. It also includes the CWB disability supplement for qualified individuals.

Goods and services tax (GST) credit and harmonized sales tax (HST) credit – Goods and services tax (GST) credit and harmonized sales tax (HST) credit received during the reference period. The GST/HST credit is a series of tax‑free payments that help individuals and families with low or modest incomes offset all or part of the GST or HST that they pay.

Government transfers not included elsewhere – All government transfers received during the reference period other than those from the following sources:

• Old Age Security pension, Guaranteed Income Supplement, Allowance and Allowance for the Survivor
• retirement, disability and survivor benefits from Canada Pension Plan and Québec Pension Plan
• benefits from Employment Insurance and Québec Parental Insurance Plan
• child benefits from federal and provincial programs
• social assistance benefits
• workers' compensation benefits
• Canada workers benefit
• goods and services tax credit and harmonized sales tax credit

The key components of this variable are refundable provincial tax credits, provincial income supplements for seniors, other provincial credits, benefits and rebates, government emergency response funds, veterans' pensions, war veterans' allowance, pensions to widow(er)s and dependants of veterans.