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Difference between revisions of "Quantifying Employment Insurance Benefits (8:VI)"
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Quantifying Employment Insurance Benefits (8:VI) (view source)
Revision as of 18:49, 4 August 2017
, 18:49, 4 August 2017→C. Effect of Earnings
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== C. Effect of Earnings == | == 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 | 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 (EI) Working While on Claim pilot project is a way to help claimants stay connected with the labour market (EIR ss 77.95-77.96). The three-year pilot project began August 5, 2012, ran until August 1, 2015 and was extended to August 6, 2016. | The Employment Insurance (EI) Working While on Claim pilot project is a way to help claimants stay connected with the labour market (EIR ss 77.95-77.96). The three-year pilot project began August 5, 2012, ran until August 1, 2015 and was extended to August 6, 2016. This pilot project has been extended to August 2018. It applies to claimants earning money while collecting any of the following types of EI benefits: | ||
*regular benefits | *regular benefits | ||
*fishing benefits | *fishing benefits | ||
*parental benefits | *parental benefits | ||
*compassionate care benefits | *compassionate care benefits | ||
*parents of critically ill children | |||
As soon as a claimant completes the | 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''' | '''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. | 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”. | ||
Example from Service Canada Website: | 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. | ||
Example from Service Canada Website: | |||
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. | |||
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). | |||
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. Since she only earns $160 per week from her work while on claim, 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). | |||
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. | |||
Important reminders''' | Important reminders''' | ||