The ordinary/adjusted income free area provides that the pensioner may receive income up to a certain amount without any reduction in their maximum rate of pension.

Any income in excess of the free area will reduce the pension at the rate of 50 cents on the dollar, or 40 cents for those receiving a transitional rate of pension. The amount of ordinary and adjusted income free areas is specified in item 1 in Table E-1 in point SCH6-E6 VEA.


Note:  [glossary:War widow's pension:705] is included as income under the adjusted income test. Neither Disability Compensation Payment nor war widow(er)'s pension are included as income under the ordinary income test.