Canadian Employment Insurance

If you plan on working in Canada, it's best to ensure you're prepared for the worst. Often employees can be dismissed from a job, even though they didn't do anything wrong. Canadian Employment Insurance (EI) is a government program providing temporary benefits during unemployment. EI also provides illness, parental, and caregiving benefits for individuals away from work for health and family reasons.

As early as 1919, the Royal Commission on Industrial Relations recommended a national unemployment insurance program. Still, it wasn't until 1940 that Canada adopted an unemployment insurance system, later renamed Employment Insurance in Canada. This article will explore the history of EI Canada, how it works, and the benefits it provides to Canadians.

What is Employment Insurance in Canada?

Canadian Employment Insurance is a government program that provides temporary financial assistance to individuals who have recently lost their job through no fault. EI also benefits individuals who cannot work because of illness or caring for a young child or a seriously ill family member.

How Does Employment Insurance in Canada Work?

All employees must pay employment insurance premiums based on earnings to a maximum insurable earnings level, provided they meet minimum earnings. However, the premiums are deducted from your pay by your employer, and you do not have to make a monthly payment for employment insurance in Canada.

Canadian Employment Insurance premiums are calculated based on the employee's EI premium rate for the year, which according to the Canadian government is 1.63% for 2023, except for Quebec, which is 1.27%. The employer contribution rate is 2.282% (general rate x 1.4). The employer multiplies the employee's payment by the EI Canada rate to calculate how much to withhold from an employee's paycheque.

What are the Benefits?

Here are some of the EI benefits Canada:

Regular Benefits

Regular Benefits are a type of Employment Insurance (EI) provided to individuals who lose their jobs through no fault of their own, such as due to a shortage of work or seasonal or mass lay-offs, and are available for and able to work but cannot find a job.

The benefit amount is based on the worker's insurable earnings and the unemployment rate in their region. Regular Benefits are temporary income support while the worker looks for or cannot work.

Sickness Benefits

Employment Insurance (EI) provides sickness benefits to eligible workers who cannot work due to illness, injury, or quarantine. The benefit amount equals 55% of the worker's average weekly insurable earnings, up to a maximum amount.

To receive Sickness Benefits, the worker must provide a medical certificate signed by a qualified medical professional. The medical certificate does not need to specify the type of illness or injury. Sickness Benefits are temporary income support while the worker cannot work due to illness, injury, or quarantine.

Family Caregiver Benefits

Family Caregiver Benefits are Employment Insurance (EI) provided to eligible workers who need to take time off work to care for a family member who is critically ill or injured. The benefit amount equals 55% of the worker's average weekly insurable earnings, up to a maximum amount. To receive Family Caregiver Benefits, the worker must:

• Be a family member of someone critically ill or injured or needing end-of-life care.
• Have regular weekly earnings of at least $2,000 before taxes or have earned at least $5,000 in the last 12 months.
• Have worked for the same employer for at least 26 weeks.
• Provide a medical certificate signed by a qualified medical professional.

Family Caregiver Benefits provide temporary income support while the worker is away to care for or support a critically ill or injured person or someone needing end-of-life care. The worker can receive up to 15 weeks of Family Caregiver Benefits.

Maternity and Parental Benefits:

Maternity and Parental Benefits are EI benefits Canada was given to eligible workers who have recently given birth or are caring for a newborn or newly adopted child. Maternity Benefits are only available to those away from work because they are pregnant or have recently given birth. The benefit amount equals 55% of the worker's average weekly insurable earnings, up to a maximum amount.

Maternity Benefits are available for up to 15 weeks. Parental Benefits are available to biological, adoptive, or legally recognized parents at a weekly benefit rate of 55% of the claimant's average weekly insurable earnings, up to a maximum amount.

Parental Benefits can be shared between parents and are available for up to 40 weeks. Workers can apply for both Maternity and Parental Benefits at once. Maternity and Parental Benefits provide temporary income support while workers are away from work to care for their children.

Skills Boost

Skills Boost is an EI Canada program that allows eligible unemployed workers to enroll in educational programs full-time without losing their EI benefits. This program is designed to help workers gain new skills and improve their employability. The Skills Boost program provides increased student financial assistance support and better uses existing EI flexibilities.

Eligible EI claimants who have lost their job after several years in the workforce can ask Service Canada for permission to enroll in educational programs full-time without losing their EI benefits. The Fast Forward Program in Nova Scotia also allows people to continue receiving regular EI benefits while attending training to improve their skills during unemployment.

The EI Canada program may allow workers to take training while receiving benefits. The Skills Boost program is part of the EI Regular Benefits provided to individuals who lose their jobs through no fault of their own and are available for and able to work but can't find a job.

Getting insured in Canada can take time and effort. One of the best ways to ensure you're doing everything correctly is to recruit the help of a certified Canadian professional like a Regulated Canadian Immigration Consultant (RCIC) to answer any questions you may have about starting your life in Canada.

How to Apply for Canadian Employment Insurance

Step 1: Ensure Your Eligibility

To receive EI Benefits Canada, the worker must:

• Be employed in insurable employment.
• Have lost their job through no fault of their own.
• Be without pay for at least one week (seven days) in the last year.
• Have paid into the EI program.

The number of hours of insurable employment required to qualify for EI depends on the unemployment rate in your area and is between 420 and 700 hours during the qualifying period.

It's important to note that each type of EI benefit has additional requirements, and eligibility criteria may vary depending on where and what kind of benefits you apply for. One of the best ways to ensure you're eligible for EI Canada is to utilize the services of a Canadian expert like an RCIC.

Step 2: Gather Your Information

Collect all the documents and information you'll need. These include your social insurance number, government-issued ID, details of your most recent employment, including your salary and why you left, and your record of employment (ROE), a form the employer prepares to say how long you worked for them and how much you earned.

Step 3: Apply for Benefits

You should apply for EI when you stop working. You can do this online by filling out an application on the Service Canada website. You can also apply in person at a Service Canada Centre.

Step 4: Complete the Online Application

If you choose to apply online, you must provide personal information, such as your name, address, and contact information, as well as details about your employment history and the reason for your job loss.

Step 5: Provide Required Documents

After you submit your application, you may be asked to provide additional documents, such as your ROE, to support your claim.

Step 6: Wait for a Decision

Service Canada will review your application and determine your eligibility for EI benefits. If approved, you will receive a benefit statement outlining the amount of your weekly benefit and the duration of your benefits. If your application is denied, you can request a reconsideration.

FAQs

How Long Does it Take to Receive the First Payment of EI Benefits?

If you are entitled to receive regular EI benefits, you should receive your first payment within 28 days of the date Service Canada receives your application and all required documents. Learn more about Insurance waiting periods in Canada.

What Other Kinds of Insurance in Canada Are There?

There are several types of insurance in Canada outside of employment insurance. Here are some of them:

• Life insurance
• Canada has two primary types of life insurance: term life insurance and permanent life insurance. Within those two types are several sub-types of life insurance, such as universal life insurance, limited pay whole life insurance, and term-to-100 insurance.
• Disability insurance
• Disability insurance replaces income if you become disabled and cannot work.
• Health insurance
• Health insurance supplements your provincial health care coverage and may or may not provide extended dental care.
• Travel Insurance
• Travel insurance protects people traveling in case of a sudden illness or injury.
• Car Insurance
• Supplementing the costs of damage or theft of your vehicle.

Learn more about insurance in Canada.

Your Career in Canada: Covered

Starting your career in Canada can be a big change, and many things can go wrong along the way. This is why ensuring you have ample support and coverage when you arrive in Canada is vital.

A fantastic way to ensure your life in Canada starts how you want is to have an expert help you set up correctly in Canada. Talk to a certified expert like an RCIC to see how you can get your best possible start in Canada.