Quantifying Employment Insurance Benefits (8:VI): Difference between revisions
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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. | 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''' | '''How It Works'''<BR> | ||
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. | 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''' | '''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. | 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. | ||
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:'''Note''': Claimants do not have to apply to the Working While on Claim project as it will automatically be applied to their claim. | :'''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?''' | '''What if the claimant works or lives outside Canada?'''<BR> | ||
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 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. | ||
Revision as of 18:52, 29 August 2023
| This information applies to British Columbia, Canada. Last reviewed for legal accuracy by the Law Students' Legal Advice Program on August 1, 2023. |
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, 2023, the maximum yearly insurable amount has been set at $61,500.
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.
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