If you get laid off in Canada, you may be eligible to receive money from the federal government’s employment insurance (EI) program.
If you lose your job through no fault of your own, EI regular benefits can replace a portion of your lost income while you search for your next job—up to $668 per week in 2024.
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Employment Insurance (EI) in Canada is designed to replace workers’ lost income during periods of unemployment.
Regular benefits provide temporary financial support if you’ve lost your job through no fault of your own (for example, a layoff, shortage of work, or your employer going out of business).
EI is not restricted to Canadian citizens and permanent residents.
Temporary foreign workers are also eligible for regular benefits, provided they meet the required eligibility criteria mentioned below, and have a valid work permit.
If you hold an open work permit and it remains valid, you can claim EI benefits provided that you meet all the conditions.
If you are on a closed (employer-specific) work permit, on the other hand, you can still file a claim, although there’s a chance that your claim will be refused on account of your work status being tied to the employer named on your work permit. That said, in some cases temporary foreign workers on closed work permits have been successful in obtaining EI benefits.
Those working for Canadian companies and based outside of Canada are entitled to EI. However, this doesn’t apply if their job is covered by employment insurance in the country in which they are working.
In order to be eligible for employment insurance, you need to meet all the following requirements:
If your employment is “insurable employment,” your employer is legally required to deduct EI premiums from your pay. You should see these deductions listed on your pay stub.
The number of insurable hours you need to have worked to qualify for regular benefits depends on the unemployment rate in your area, and is usually between 420 and 700 hours of insurable employment.
The qualifying period of time is usually the 52-week period immediately before the start date of your claim.
If you left your job voluntarily (i.e., quit), or if your employment was terminated with cause (e.g., for misconduct or poor performance), you are not eligible for EI.
You must have lost income in order to receive regular benefits. The purpose of the EI program is to replace lost income, not to enrich claimants.
So if you’ve received pay in lieu of notice or a severance package, you can apply for EI right away but will not be eligible to receive any benefits until the period of time covered by your severance has elapsed.
You usually can’t receive regular benefits while outside Canada. However, exceptions can be made if you can prove you’re still available for work in Canada during your time abroad.
While receiving regular benefits, you must be ready and willing to work and must be actively looking for work. If you are not ready and willing to work and actively seeking employment, you are not entitled to receive EI benefits. You should keep records of your job search activities to provide to Service Canada upon request.
If you apply for EI and receive benefit payments for which you were not eligible, you will be required to repay those benefits.
The amount of money you receive as EI will vary based on several factors, including your earnings and the unemployment rate in your region at the time of filing your claim.
For most, the basic rate for calculating EI is 55% of the average insurable weekly earnings*, up to a maximum amount.
The current maximum yearly insurable earnings is $63,200. That means that the maximum weekly amount you can get as employment insurance is $668.
EI benefits are taxable. You can expect Service Canada to withhold a portion of each payment for income taxes, and you will owe income taxes at your marginal rate on all earnings you receive from regular benefits.
*Insurable earnings refer to the total earnings reported on a statement or salary slip before income tax or other deductions are made. It includes different types of compensation from employment such as wages, tips, and bonuses.
How long you can receive EI depends on:
Based on these factors, it can be anywhere between 14 and 45 weeks.
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Step 1: Apply immediately.
The Canadian government advises you to apply for EI as soon as you stop working, as it can take a bit of time before your benefits begin.
To apply, you need to fill out an online application. You will be required to provide
The online application takes roughly an hour to fill out.
If you stop part way through the application before submitting it, the information you have entered will be saved for three days, should you choose to resume completing the application.
If you stop part way through your application and do not complete and submit it within three days, the information you’ve entered will be deleted, and you’ll have to start a new application.
Step 2: Check regarding your records of employment (ROEs).
The government needs your records of employment (ROEs) to determine how much EI benefits you’re eligible for.
Your former employer should issue your ROE within five calendar days after the final pay period. They may issue this directly to you, or they could choose to send your ROE to Service Canada.
If they issue the ROE to you, you need to submit this to Service Canada.
*Service Canada recommends applying for EI immediately after being laid off to avoid delays in payment, even if you haven’t received your ROE.
Step 3: Share further information, if contacted.
Service Canada may reach out to you via email if they have any questions.
Most likely they will ask you to call them to provide more information. They don’t ask for more information via email.
Step 4: Wait for a decision to be made.
You can expect the government to make a decision on your claim within 28 days of having filed your claim. This is the service standard set by Service Canada.
You can review the status of your application by signing into your My Service Canada Account (MSCA).
Ensure your banking details and contact details are up-to-date.
Step 5: Submit bi-weekly reports.
If your claim is approved, you will need to submit online reports to Service Canada every two weeks to continue receiving benefits.
After your apply for EI, you will receive a four-digit code by mail. Keep this number safe, as you will need it and your Social Insurance Number (SIN) to complete EI reports.
If you return to work, or otherwise earn any money during this period, you will need to mention this in your report.
There is a waiting period of one week before you become eligible to receive benefits. So for the 5-week period following having lost your job, you would receive 4 weeks’ worth of regular benefits (5 weeks minus the 1 week waiting period).
While you are receiving EI benefits, payments will be issued after you submit your bi-weekly report. It may take 2-3 business days after submitting the report to see the money in your account.
Employment insurance will stop being paid out once
You may be eligible for employment insurance even if you get a part-time job, or contract work.
Any money earned during this period has to be indicated in your bi-weekly reports.
Based on this, every dollar you earn from work will reduce your EI benefits by only 50 cents, allowing you to earn up to 90% of your weekly insurable earnings, compared to the 55% you could receive while collecting EI alone.
Your employment earnings above the 90% cap will be deducted from your benefits, dollar for dollar.
Failing to report money you earn while receiving EI would result in being overpaid, and having to repay this money.
My Service Canada Account is an online portal where you can access government services and benefits such as the Canada Pension Plan, Old Age Security, and EI.
To access it, visit www.canada.ca/MyServiceCanadaAccount and register your account.
You have several options for validating your identity for opening and singing into your MSCA account:
To set up direct deposit, you can fill out, print, and mail the direct deposit form which is available online, directly to Service Canada.
You can also call a Service Canada call centre or visit a Service Canada office.
You will need your bank account number, bank transit number, and institution number. These details should be available on a cheque or through your online banking portal.
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