Quantifying Employment Insurance Benefits (8:VI): Difference between revisions

Latest revision as of 12:04, 8 August 2024

This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on August 8, 2024.

A. Benefit Rate

Section 14 of the EI Act outlines the benefit rate, which is typically 55% of the claimant’s weekly insurable earnings, subject to a maximum limit.

The current maximum weekly benefit ceiling stands at $650 per week. It is always important to verify this information on Service Canada’s “Employment Insurance Regular Benefits” webpage to ensure its accuracy, as it may be subject to updates.

As of January 1, 2024, the maximum yearly insurable amount has been set at $63,200.

B. Weekly Insurable Earnings

A claimant’s weekly insurable earnings are their insurable earnings in the calculation period divided by the number of weeks in the calculation period.

1. The Calculation Period

The calculation period is the number of weeks, consecutive or not, determined based on the applicable regional rate of unemployment as below, in which the claimant received the highest insurable earnings.

Regional Rate of Unemployment	Number of Weeks
not more than 6%	22
more than 6% but not more than 7%	21
more than 7% but not more than 8%	20
more than 8% but not more than 9%	19
more than 9% but not more than 10%	18
more than 10% but not more than 11%	17
more than 11% but not more than 12%	16
more than 12% but not more than 13%	15
more than 13%	14

C. Effect of Earnings

The benefit payable to a claimant may be reduced if the claimant has “earnings” during the benefit period. It may be possible both to work part-time and receive EI benefits at the same time, but all income must be reported on the report cards.

The “EI Working While on Claim” project is a way to help claimants stay connected with the labour market (EI Regulations, ss 77.95-77.96). With “Working While on Claim,” you can keep receiving part of your Employment Insurance benefits and all earnings from your job. You can qualify if you receive any type of EI benefits.

As soon as a claimant completes the one-week EI waiting period, the Working While on Claim project will automatically apply to any money the claimant earns while the claimant is collecting EI benefits.

How It Works
The Commission sets a threshold which is 90% of the claimant’s weekly insurable earnings. Below this threshold, for every dollar a claimant earns, 50 cents will be deducted from their benefits. Above this threshold, EI benefits are deducted dollar-for-dollar.

Example from Service Canada Website
Melissa was laid off when the construction company where she worked lost a major contract. Her weekly earnings averaged $800, so her weekly EI benefits rate is $440 (55% of $800). She has found a part-time job at another construction company where she works one day and earns $160.

Automatically, 50 cents of her EI benefits are deducted for every dollar she earns. Since she earned $160, her benefits are reduced by $80 ($160 ÷ 2). This brings her total EI benefits to $360 ($440 - $80). So, Melissa takes home $520 per week in combined EI benefits and wages ($360 of EI benefits + $160 in wages).

Note: Claimants do not have to apply to the Working While on Claim project as it will automatically be applied to their claim.

What if the claimant works or lives outside Canada?
If the claimant is living in the United States and works in Canada, or if the claimant crossed the Canada–United States border between the claimant’s residence and workplace and the claimant is receiving EI benefits, the Working While on Claim project will apply. Visit the Employment Insurance and Workers and/or Residents outside Canada Webpage for more information.

1. Earnings During the Waiting Period

All earnings during the waiting period are deducted dollar-for-dollar from the benefits payable in respect of the first three weeks for which benefits are otherwise payable. There is thus little incentive to work during the waiting period.

2. Earnings of Sick or Pregnant Claimants under Supplemental Unemployment Benefit Plan

Amounts paid to the claimant during periods of illness or pregnancy under an approved Supplemental Unemployment Benefit plan will not be deducted from EI benefits. These plans allow the employer to “top up” the regular EI benefits without reductions.

Individual Supplemental Unemployment Benefit plans must be approved by the Commission, which ensures that they meet the requirements of s. 37(2) of the EI Regulations.

An employee normally benefits from these plans while drawing EI benefits. If the worker is ineligible for EI, they may still qualify for Supplemental Unemployment Benefits that do not count as earnings for the purpose of determining waiting periods.

@@ Line 1: / Line 1: @@
-{{REVIEWED LSLAP | date= July 3, 2020}}
+{{REVIEWED LSLAP | date= August 8, 2024}}
 {{LSLAP Manual TOC|expanded = EI}}
 == A. Benefit Rate ==
-The benefit rate is set out in s 14 of the EI Act.  The benefit rate is either:
+Section 14 of the ''EI Act'' outlines the benefit rate, which is typically 55% of the claimant’s weekly insurable earnings, subject to a maximum limit.
-* 55% of the worker’s weekly insurable earnings (see next section); or,
+The current maximum weekly benefit ceiling stands at $650 per week. It is always important to verify this information on Service Canada’s “Employment Insurance Regular Benefits” [https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit/benefit-amount.html webpage] to ensure its accuracy, as it may be subject to updates.
-* if (1) the claimant or the spouse of the claimant has dependents and (2) the benefit rate of 55% amounts to less than $225 a week or the family income is less than $25,921, then the claimant may also be entitled to a family supplement.
-The current ceiling for the maximum weekly benefits is $547 per week.  Always check Service Canada’s “Employment Insurance Regular Benefits” webpage to ensure this information is up-to-date at https://www.canada.ca/en/services/benefits/ei/ei-regular-benefit.html.  Effective January 1, 2018, the maximum yearly insurable amount is $51,700.
+As of January 1, 2024, the maximum yearly insurable amount has been set at $63,200.
 == B. Weekly Insurable Earnings ==
@@ Line 17: / Line 16: @@
 === 1. The Calculation Period ===
-The calculation period is the number of weeks, consecutive or not, determined based on the applicable regional rate of unemployment as below, in  which the claimant received the highest insurable earnings.
+The calculation period is the number of weeks, consecutive or not, determined based on the applicable regional rate of unemployment as below, in which the claimant received the highest insurable earnings.
 {| class="wikitable"
@@ Line 50: / Line 49: @@
 | 14
 |}
-=== 2. Insurable Earnings ===
-Insurable earnings include:
-*Insurable earnings from insurable employment including employment that has not ended
-*Insurable earnings paid or payable to the claimant during the qualifying period by reason of lay-off or separation from employment, unless the lay-off or separation from employment occurred during the qualifying period.
 == C. Effect of Earnings ==
-The benefit payable to a claimant may be reduced if the claimant has “earnings” during the benefit period.  It may be possible both to work part-time and receive EI benefits at the same time, but all income must be reported on the report cards.
+The benefit payable to a claimant may be reduced if the claimant has “earnings” during the benefit period. It may be possible both to work part-time and receive EI benefits at the same time, but all income must be reported on the report cards.
-The Employment Insurance Working While on Claim pilot project is a way to help claimants stay connected with the labour market (''EI Regulations'' ss 77.95-77.96)..  It applies to claimants earning money while collecting any of the following types of EI benefits:
-*regular benefits
-*fishing benefits
-*parental benefits
-*compassionate care benefits
-*parents of critically ill children
-*family members of critically ill adults
-As soon as a claimant completes the one-week EI waiting period, the pilot project will automatically apply to any money the claimant earns while the claimant is collecting EI benefits.
-:'''How it works'''
-:The Commission sets a threshold which is 90% of the claimant weekly insurable earnings.  Below this threshold, for every dollar, a claimant earns 50 cents will be deducted from their benefits. Above this threshold, a dollar of benefits will be deducted for every dollar earned. This is referred to as the “default rule”.
-:The claimants may choose to opt for the “optional rule”. The optional rule allows the claimant to keep the equivalent of roughly one day’s work which is defined as $75 or 40% of the claimant’s benefit rate (whichever is greater) without any deduction to the EI benefit they receive. Any earnings after this amount will be deducted dollar to dollar from the EI benefits the claimant is receiving.
+The “EI Working While on Claim” project is a way to help claimants stay connected with the labour market (''EI Regulations'', ss 77.95-77.96). With “Working While on Claim,” you can keep receiving part of your Employment Insurance benefits and all earnings from your job. You can qualify if you receive any type of EI benefits.
+As soon as a claimant completes the one-week EI waiting period, the Working While on Claim project will automatically apply to any money the claimant earns while the claimant is collecting EI benefits.
-:'''Example from Service Canada Website:'''
+'''How It Works'''<BR>
-:Melissa got laid off when the construction company where she was working lost a major contract. Her weekly earnings averaged out to $800, so her weekly EI benefits are $440. She then finds a part-time job at another construction company where she works one day and earns $160 per week.
+The Commission sets a threshold which is 90% of the claimant’s weekly insurable earnings. Below this threshold, for every dollar a claimant earns, 50 cents will be deducted from their benefits. Above this threshold, EI benefits are deducted dollar-for-dollar.
-:Automatically under the “default rule”, she is allowed to keep 50 cents of EI benefits for every dollar she earns, so she takes home $520 per week in combined EI benefits and wages ($360 of EI benefits + $160 in wages).
+'''Example from Service Canada Website'''<BR>
+Melissa was laid off when the construction company where she worked lost a major contract. Her weekly earnings averaged $800, so her weekly EI benefits rate is $440 (55% of $800). She has found a part-time job at another construction company where she works one day and earns $160.
-:If she chooses the “optional rule”, she can earn up to the greater of $75 or 40% (176) of her benefit rate, without any deductions from her benefits. In this scenario, she will choose to keep 40% ,as she only earns $160 per week from her work while on claim, so she can keep all of her EI benefits. Under this option, she would take home $600 per week in combined EI benefits and wages ($440 of EI benefits + $160 in wages).
+Automatically, 50 cents of her EI benefits are deducted for every dollar she earns. Since she earned $160, her benefits are reduced by $80 ($160 ÷ 2). This brings her total EI benefits to $360 ($440 - $80). So, Melissa takes home $520 per week in combined EI benefits and wages ($360 of EI benefits + $160 in wages).
-:In this example, Melissa would likely choose the “optional rule” if she never worked more than one day per week as she takes home $80 more per week.
+:'''Note''': Claimants do not have to apply to the Working While on Claim project as it will automatically be applied to their claim.
+'''What if the claimant works or lives outside Canada?'''<BR>
-:'''Important reminders'''
+If the claimant is living in the United States and works in Canada, or if the claimant crossed the Canada–United States border between the claimant’s residence and workplace and the claimant is receiving EI benefits, the Working While on Claim project will apply. Visit the Employment Insurance and Workers and/or Residents outside Canada [https://www.canada.ca/en/services/benefits/ei/ei-outside-canada.html Webpage] for more information.
-:If a claimant is receiving EI sickness benefits or EI maternity benefits, this pilot project does not apply.  Any earnings the claimant has will continue to be deducted dollar for dollar from benefits.  If the claimant works a full working week, the claimant will not receive any EI benefits, regardless of the amount the claimant earns.
-:Claimants do not have to apply to the Working While on Claim pilot project as it will automatically be applied to their claim. The “default rule” will be the method of calculation that automatically applies. However, claimants must request to opt for the “optional rule” in order to have their benefits calculated accordingly.
-:'''What if the claimant works or lives outside Canada?'''
-:If the claimant is living in the United States and works in  Canada, or if the claimant crossed the Canada–United States border between the claimant’s residence and workplace and the claimant is receiving EI benefits, this pilot project will apply. Visit the Employment Insurance and Workers and/or Residents outside Canada Web page for more information: https://www.canada.ca/en/services/benefits/ei/ei-outside-canada.htm
 === 1. Earnings During the Waiting Period ===
+All earnings during the waiting period are deducted dollar-for-dollar from the benefits payable in respect of the first three weeks for which benefits are otherwise payable. There is thus little incentive to work during the waiting period.
-All earnings during the waiting period are deducted dollar for dollar from the benefits payable in respect of the first three weeks for which benefits are otherwise payable. There is thus little incentive to work during the waiting period.
+=== 2. Earnings of Sick or Pregnant Claimants under Supplemental Unemployment Benefit Plan ===
-=== 2. Earning of Sick Claimants ===
-In contrast to regular claimants, all “earnings” are deducted, dollar for dollar, for claimants receiving sickness benefits – whether they are earned during the waiting period or afterward. (s 21(3)).
-=== 3. Earnings of Parental Claimants ===
-Claimants receiving parental benefits are entitled to claim an exemption of earnings (See [[{{PAGENAME}}#C. Effect of Earnings |  Section V.C: Effect of Earnings]])
-=== 4. Earnings of Sick or Pregnant Claimants under Supplemental Employment Benefit Plans ===
+Amounts paid to the claimant during periods of illness or pregnancy under an approved Supplemental Unemployment Benefit plan will not be deducted from EI benefits. These plans allow the employer to “top up” the regular EI benefits without reductions.
-Amounts paid to the claimant during periods of illness or pregnancy under an approved Supplemental Employment Benefit plan will not be deducted from EI benefits. These plans allow the employer to “top up” the regular EI benefits without reductions.
+Individual Supplemental Unemployment Benefit plans must be approved by the Commission, which ensures that they meet the requirements of s. 37(2) of the ''EI Regulations''.
-Individual Supplemental Employment  Benefit plans must be approved by the  Commission,  which ensures that they meet the requirements of s 37(2).
+An employee normally benefits from these plans while drawing EI benefits. If the worker is ineligible for EI, they may still qualify for Supplemental Unemployment Benefits that do not count as earnings for the purpose of determining waiting periods.
-An employee normally benefits from these plans while drawing EI benefits. If the worker is ineligible for EI, he or she may still qualify for  Supplemental Employment Benefits that do not count as earnings for the purpose of determining waiting periods.
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