Alberta
$1,200.00 boost for “Alberta’s critical workers”
From the Province of Alberta
$465 million for Alberta’s critical workers
Hundreds of thousands of workers who continue to provide critical services to Albertans during the COVID-19 pandemic will receive a one-time payment in recognition of their hard work and sacrifice.
The Critical Worker Benefit is a joint federal-provincial program that will see $465 million go to approximately 380,000 Alberta public and private sector workers as $1,200 cash payments.
“These workers have placed themselves at the front line of this pandemic in order to serve their fellow citizens during a crisis. Alberta’s government is recognizing their good work. We trust this support will help these workers continue to protect lives and livelihoods as we keep fighting this pandemic together.”
The Critical Worker Benefit will be available to workers in the health-care, social services, education and private sectors who deliver critical services to Albertans or support food and medical supply chains.
“I want to thank all the hard-working staff who have gone above and beyond their regular call of duty to support their fellow Albertans throughout this pandemic. This Critical Worker Benefit will go right into the pockets of hard-working Albertans on the front line who have made sacrifices in their own lives for the greater good and well-being of others.”
To be eligible for the benefit, employees must have worked a minimum of 300 hours during the period of Oct. 12, 2020 to Jan. 31, 2021.
“Since the start of this pandemic, we have been deemed an essential service and our store, pharmacy and distribution centre teammates have stepped up to support Albertans and all Canadians. We know that our teammates will be thankful for this recognition and additional support from the Government of Alberta.”
Under the health-care sector, approximately 161,000 eligible employees will receive the Critical Worker Benefit. These eligible occupations include orderlies and patient service associates, respiratory therapists and technologists, nurses (RNs, RPNs, LPNs), food services, housekeeping and maintenance workers and unit clerks.
“I’m proud to see this acknowledgment of our front-line health-care workers. Their continued dedication over the past 11 months caring for patients with COVID-19, but also continuing to provide other important health-care services, has shown tremendous resilience. Their dedication is the strength of our health system and this is just one small way that we can recognize it.”
In the social services sector, approximately 45,000 workers will receive the benefit. Some of the eligible occupations include community disability service workers and practitioners, personal care aides, child development workers, family and youth counsellors, crisis intervention and shelter workers, home support workers, seniors lodge staff, cleaners, food preparation and maintenance workers.
“It has been due to the tremendous efforts of the front-line staff in seniors housing, that our most vulnerable are safe. The precautionary measures workers have taken within their homes and workplaces, where others’ wellness was prioritized over earning potential and personal enjoyments, is why this acknowledgment is so important. This shows appreciation for those our province has had to depend on to keep seniors healthy, happy and safe in licensed supportive living, including lodges, since the onset of the pandemic.”
“Every day, thousands of workers across Alberta support vulnerable people with disabilities and those relying on services provided by shelters. These workers are committed to ensuring people are safe and included in our communities. This benefit acknowledges their extraordinary efforts during the pandemic to provide compassionate and essential care for vulnerable Albertans.”
“Community group care workers and support staff, as well as early childhood educators, have played a critical role in keeping children and youth safe and healthy throughout this pandemic – including staying open or reopening early on to support families. I want to share my sincere gratitude for all their hard work and dedication during these challenging times.”
“Alberta’s seniors lodge workers and unique home operator staff have gone above and beyond to maintain a safe environment for their residents. I am extremely appreciative for the hard work, dedication, and effort of the front-line workers who support seniors and ensure they remain safe during the pandemic.”
Up to 36,000 workers in the education sector will also be eligible to receive the benefit. This includes teacher assistants, bus drivers, custodians and cleaning staff, and administration support.
“Despite the unique challenges that come with learning during a pandemic, students in Alberta continue to receive a world-class education. This is possible thanks to the hard work of thousands of dedicated education workers. This benefit recognizes their determination to go above and beyond for Alberta’s students.”
“Bus drivers across the province have worked tremendously hard to keep students safe while going to and from school. This benefit helps recognize tremendous work done by these essential workers.”
In addition, eligible private sector workers making $25 or less will qualify for the benefit. These workers include: critical retail workers in grocery stores, pharmacies and gas stations; private health provider workers, such as dental assistants, massage therapists and medical administration assistants; food manufacturing and processing workers; truck transportation workers, such as truck drivers and delivery and courier services drivers; and warehouse and storage workers, such as shippers and receivers.
Eligible public sector employees do not need to apply to receive the benefit. Employers will automatically receive the payment through the Government of Alberta to distribute to their eligible employees.
Private sector employers can apply on behalf of eligible employees at alberta.ca/criticalworkerbenefitas of Feb. 17. Employers have until March 19 to apply.
Employers will be responsible for distributing the $1,200 Critical Worker Benefit to their eligible employees.
For detailed information on eligibility and how to apply, please visit alberta.ca/criticalworkerbenefit.
Alberta’s government is responding to the COVID-19 pandemic by protecting lives and livelihoods with precise measures to bend the curve, sustain small businesses and protect Alberta’s health-care system.
Quick facts
- Alberta’s government contributed $118 million toward the $465-million program.
- The breakdown of benefit recipient is:
- Up to $195 million in the health-care sector supporting more than 161,000 workers.
- Up to $55 million toward the social services sector supporting more than 45,000 workers.
- Up to $45 million toward the education sector supporting more than 36,000 workers.
- Up to $170 million toward the private sector supporting more than 140,000 workers.
- Previously allocated:
- $12 million for health-care aides
- $14.4 million for adult congregate care workers
- $3.62 million for children’s congregate care workers
From the Fraser Institute
By Tegan Hill
Last Friday, less than a week before Christmas, the Smith government quietly released the final report from its Alberta Next Panel, which assessed Alberta’s role in Canada. Among other things, the panel recommends that the federal government transfer some of its tax revenue to provincial governments so they can assume more control over the delivery of provincial services. Based on Canada’s experience in the 1990s, this plan could deliver real benefits for Albertans and all Canadians.
Federations such as Canada typically work best when governments stick to their constitutional lanes. Indeed, one of the benefits of being a federalist country is that different levels of government assume responsibility for programs they’re best suited to deliver. For example, it’s logical that the federal government handle national defence, while provincial governments are typically best positioned to understand and address the unique health-care and education needs of their citizens.
But there’s currently a mismatch between the share of taxes the provinces collect and the cost of delivering provincial responsibilities (e.g. health care, education, childcare, and social services). As such, Ottawa uses transfers—including the Canada Health Transfer (CHT)—to financially support the provinces in their areas of responsibility. But these funds come with conditions.
Consider health care. To receive CHT payments from Ottawa, provinces must abide by the Canada Health Act, which effectively prevents the provinces from experimenting with new ways of delivering and financing health care—including policies that are successful in other universal health-care countries. Given Canada’s health-care system is one of the developed world’s most expensive universal systems, yet Canadians face some of the longest wait times for physicians and worst access to medical technology (e.g. MRIs) and hospital beds, these restrictions limit badly needed innovation and hurt patients.
To give the provinces more flexibility, the Alberta Next Panel suggests the federal government shift tax points (and transfer GST) to the provinces to better align provincial revenues with provincial responsibilities while eliminating “strings” attached to such federal transfers. In other words, Ottawa would transfer a portion of its tax revenues from the federal income tax and federal sales tax to the provincial government so they have funds to experiment with what works best for their citizens, without conditions on how that money can be used.
According to the Alberta Next Panel poll, at least in Alberta, a majority of citizens support this type of provincial autonomy in delivering provincial programs—and again, it’s paid off before.
In the 1990s, amid a fiscal crisis (greater in scale, but not dissimilar to the one Ottawa faces today), the federal government reduced welfare and social assistance transfers to the provinces while simultaneously removing most of the “strings” attached to these dollars. These reforms allowed the provinces to introduce work incentives, for example, which would have previously triggered a reduction in federal transfers. The change to federal transfers sparked a wave of reforms as the provinces experimented with new ways to improve their welfare programs, and ultimately led to significant innovation that reduced welfare dependency from a high of 3.1 million in 1994 to a low of 1.6 million in 2008, while also reducing government spending on social assistance.
The Smith government’s Alberta Next Panel wants the federal government to transfer some of its tax revenues to the provinces and reduce restrictions on provincial program delivery. As Canada’s experience in the 1990s shows, this could spur real innovation that ultimately improves services for Albertans and all Canadians.
Tegan Hill
Director, Alberta Policy, Fraser Institute
From the Fraser Institute
By Tegan Hill
The Alberta Next Panel, tasked with advising the Smith government on how the province can better protect its interests and defend its economy, has officially released its report. Two of its key recommendations—to hold a referendum on Alberta leaving the Canada Pension Plan, and to create a commission to review programs like equalization—could lead to meaningful changes to Canada’s system of fiscal federalism (i.e. the financial relationship between Ottawa and the provinces).
The panel stemmed from a growing sense of unfairness in Alberta. From 2007 to 2022, Albertans’ net contribution to federal finances (total federal taxes paid by Albertans minus federal money spent or transferred to Albertans) was $244.6 billion—more than five times the net contribution from British Columbians or Ontarians (the only other two net contributors). This money from Albertans helps keep taxes lower and fund government services in other provinces. Yet Ottawa continues to impose federal regulations, which disproportionately and negatively impact Alberta’s energy industry.
Albertans were growing tired of this unbalanced relationship. According to a poll by the Angus Reid Institute, nearly half of Albertans believe they get a “raw deal”—that is, they give more than they get—being part of Canada. The Alberta Next Panel survey found that 59 per cent of Albertans believe the federal transfer and equalization system is unfair to Alberta. And a ThinkHQ survey found that more than seven in 10 Albertans feel that federal policies over the past several years hurt their quality of life.
As part of an effort to increase provincial autonomy, amid these frustrations, the panel recommends the Alberta government hold a referendum on leaving the Canada Pension Plan (CPP) and establishing its own provincial pension plan.
Albertans typically have higher average incomes and a younger population than the rest of the country, which means they could pay a lower contribution rate under a provincial pension plan while receiving the same level of benefits as the CPP. (These demographic and economic factors are also why Albertans currently make such a large net contribution to the CPP).
The savings from paying a lower contribution rate could result in materially higher income during retirement for Albertans if they’re invested in a private account. One report found that if a typical Albertan invested the savings from paying a lower contribution rate to a provincial pension plan, they could benefit from $189,773 (pre-tax) in additional retirement income.
Clearly, Albertans could see a financial benefit from leaving the CPP, but there are many factors to consider. The government plans to present a detailed report including how the funds would be managed, contribution rates, and implementation plan prior to a referendum.
Then there’s equalization—a program fraught with flaws. The goal of equalization is to ensure provinces can provide reasonably comparable public services at reasonably comparable tax rates. Ottawa collects taxes from Canadians across the country and then redistributes that money to “have not” provinces. In 2026/27, equalization payments is expected to total $27.2 billion with all provinces except Alberta, British Columbia and Saskatchewan receiving payments.
Reasonable people can disagree on whether or not they support the principle of the program, but again, it has major flaws that just don’t make sense. Consider the fixed growth rate rule, which mandates that total equalization payments grow each year even when the income differences between recipient and non-recipient provinces narrows. That means Albertans continue paying for a growing program, even when such growth isn’t required to meet the program’s stated objective. The panel recommends that Alberta take a leading role in working with other provinces and the federal government to reform equalization and set up a new Canada Fiscal Commission to review fiscal federalism more broadly.
The Alberta Next Panel is calling for changes to fiscal federalism. Reforms to equalization are clearly needed—and it’s worth exploring the potential of an Alberta pension plan. Indeed, both of these changes could deliver benefits.
Tegan Hill
Director, Alberta Policy, Fraser Institute
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