Employment Insurance Regular Benefits also known as E.I benefits aim to provide temporary income replacement to Canadians who may have lost their jobs through no fault of their own due to re-structuring, shortage of work, seasonal lay-offs, etc. Run by Employment and Social Development Canada, (ESDC), the program aims to minimize the financial hardship during this difficult time by providing a taxable weekly benefit that can last for 14-45 weeks.
Eligibility
To qualify for employment insurance regular benefits, you must meet the following criteria:
- Lost your job through no fault on your own (restructuring, shortage of work, seasonal) Keep in mind that if you quit your job voluntarily, you may not qualify for employment insurance regular benefits.
- You paid into employment insurance during time of employment
- Have been unemployed and without salary for at least a week in the last 52 weeks
- You were employed for a minimum of 420 and 720 hours during the qualifying period which is 52 weeks or since the start of your last EI claim, whichever is shorter.
- You’re ready and willing to work each day and actively looking for employment. (You must keep a list of employers that you’ve contacted about employment opportunities in case of an audit)
From time to time, you have to do bi-weekly reporting in order to confirm your eligibility on a continuous basis.
You will not qualify for employment insurance regular benefits if:
- If you left your job voluntarily
- If you’re in jail
- If you were dismissed with cause
- If you’re part of a lockout or strike
Qualifying Period
To qualify for employment insurance, you must have worked a certain number of hours. The minimum number of hours is between 420 and 700 hours depending on the unemployment rate in the area. The hours must have been accumulated during the qualifying period.
The qualifying period is the shorter of :
- 52 week period before the start date of your claim
- or
- the period from the beginning of a previous benefit period to the start of your new benefit period
The qualifying period may be extended to a maximum of 104 weeks if you couldn’t work due to illness, injury or pregnancy.
Amount of Employment Insurance Regular Benefits
The amount that you could receive from employment insurance isn’t fixed. It depends on your earnings and where you currently live. For the average person, the basic rate to determine employment insurance benefits is 55% of their average insurable weekly earnings up to a maximum amount. By submitting a formal application, you’ll be able to find the weekly EI amount which is payable from 14 weeks up to 45 weeks.
For 2020, the maximum yearly insurable earnings is $54,200 or $573 per week.
The benefits are based on your highest weeks of earnings over the qualifying period which is usually 52 weeks. The benefits are calculated over a number of weeks which can range from 14 weeks to 22 weeks, depending on the unemployment rate in the region. 22 weeks is used in regions with the lowest rates of unemployment while 14 weeks is used in areas with high rates of unemployment.
Keep in mind that your benefits can be reduced if you earn certain type of income during the benefit period such as:
- Income from CPP or pension plan
- Severance Pay
- Legal settlements due to wrongful dismissal
- Self employment income
- Callback pay which means that your employee calls you back for a short period of time after you’ve been let go.
Payments would stop once you begin meaningful employment.
Other EI Benefits
There are various types of other Employment Insurance benefits, mentioned below.
- Parental Benefits
- Sickness Benefits
- Benefits for Farmers
- Caregiving Benefits
- Compassionate Care
- Benefits for parents of murdered or missing children
- Fishing Benefits
- Benefits for self-employed people
For more up to date information regarding employment insurance or more information about employment insurance regular benefits, visit Government of Canada’s official website.
