Canada Recovery Sickness Benefit (CRSB)

The Canada Recovery Sickness Benefit (CRSB) is a proposed measure to provide Canadians with paid sick leave for reasons related to COVID-19.  Workers who miss at least 50% of their normal time at work during a week due to being sick from or self-isolating because of COVID-19, or due to having a medical issue that would make them more vulnerable to being infected with COVID-19, can receive a taxable benefit of $500.  A worker can take the CRSB for a total of 2 weeks between Sept 27, 2020 and Sept 25, 2021.

Workers cannot claim CRSB at the same time they are on employer-provided paid sick leave, or certain other types of benefits or leave. Claimants must have earned at least $5,000 in any of 2019, 2020, or the span of 12 months before they apply for the CRCB.[^1]

The CRSB program is assumed to be in effect from September 27, 2020 to September 25, 2021.

The potential beneficiaries of the CRSB are assumed to be workers who have no employer-provided sick leave or whose employer-provided sick leave is under $500/week.

The COVID-19 projections for October 2020 to March 2021 were based on the number of cases in Canada in August 2020 and seasonal patterns of worker sickness with a declining pattern starting in May 2021.

PBO assumes that some workers who are sick for other reasons than COVID-19 may claim the CRSB. The projected numbers of these workers were estimated based on LFS illness data and COVID-19 cases among workers.

The usage of the CRSB among those with medical issues was based on survey data and projections about which industries are expected to see larger than average declines during the CRSB eligibility period.

The government would receive revenue from federal personal income taxes paid on CRSB benefits.

PBO estimates total net cost of this measure to be $599 million in 2020-2021 and $550 million in 2021-2022.

The precision of this estimate is affected by a lack of microdata regarding the availability of employer-provided paid sick leave and the levels of income replacement provided by this leave.

In addition, there is further uncertainty stemming from workers’ take-up of the CRSB linked to various illnesses and how the program would be administered.

Furthermore, the estimates are sensitive to the progression of the COVID-19 pandemic.

• Estimates are presented on an accrual basis as would appear in the budget and public accounts.
• A positive number implies a deterioration in the budgetary balance (lower revenues or higher spending). A negative number implies an improvement in the budgetary balance (higher revenues or lower spending).
• “-“ = PBO does not expect a financial cost.