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Documentation of APW calculations for Canada, 1997
Single APW:
The gross wage of the APW (or AE) in 1997 is from 
The Tax/Benefit
Position of Employees', OECD, 1998 edition.
1997
Insured
1)
Gross wage
34,412 CAD
Tax and social security
9,262 CAD
2)
Disposable income
25,150 CAD
APW-couple: The husband has the same wage as the single APW, the wife has 50 per
cent of that. The couple has no children.
1997
Insured
1)
Gross wage
51,618 CAD
Tax and social security contribution
12,697 CAD
Disposable income
38,921 CAD
1)
Unemployment insurance is mandatory in Canada.
2)
Cf. the annex for a documentation.
'Standard' income events
1.
Ill for one week during the year. Single APW
The gross wage is reduced by 1/52, i.e. 662 CAD. The compensation is 55 per cent
of the lost income, but with a waiting period of 2 weeks in the scheme there is no
compensation. The rules are contained in the Employment Insurance scheme. Maxi-
mum insurable earnings are 39,000 CAD in 1997.
The gross compensation percentage is 0. The disposable income of the APW who is
ill for one week is 24,776 CAD in 1997.
The decrease in disposable income compared to the situation with no illness is
25,150 - 24,776 = 374 CAD or 1.5 per cent.

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There are no general labour market agreements for cover in case of illness, but there
are supplementary benefits from some large corporations. 
2.
Unemployed for 3 months during the year, insured. Single APW
The gross wage of the insured APW is reduced by 1/4, i.e. 8,603 CAD. The com-
pensation is 55 per cent of the lost income according to the Employment Insurance
scheme. For 13 weeks with a waiting period of 2 weeks the compensation is 11/13
× 0.55 × 8,603 = 4,004 CAD. Maximum insurable earnings are 39,000 CAD in 1997.
The gross compensation percentage is 4,004 / 8,603 × 100 = 46.5. The disposable
income of the APW with 25 per cent unemployment is 22,735 CAD in 1997.
The decrease in disposable income compared to the situation with no unemployment
is 25,150 - 22,735 = 2,415 CAD or 9.6 per cent.