Employment Insurance (EI) is an essential social program of government benefits in Canada. Our guide will explain everything you need to know about EI in Canada, including eligibility, benefits, premiums, the application process, and more.
What is Employment Insurance?
Employment Insurance (EI) is an unemployment insurance program providing temporary financial assistance to eligible workers who lose their jobs. It also benefits individuals unable to work due to significant life events like pregnancy, illness, or caregiving duties.
Seven key facts about Employment Insurance in Canada:
- It is administered by the Canadian federal government under the Employment Insurance Act.
- Funded through EI premiums paid by Canadian workers and employers. Employees will be paid 1.64% of insurable earnings in 2025, and employers will contribute 1.4 times the employee premium.
- Paid into a particular account, the EI Operating Account, not general revenues.
- Provides income replacement between 40-55% of average insurable weekly earnings, depending on regional unemployment rates.
- There are over 24 different types of EI benefits available for regular unemployment, sickness, maternity/parental leave, compassionate care, and other claims.
- In July 2024, there were 489,000 Canadians getting regular Employment Insurance (EI) benefits, which was an increase of 2.2% (11,000 people) compared to the previous month.
- Canadians do not need to apply separately for EI coverage. The program automatically covers all eligible workers through payroll deductions.
EI is Canada’s first line of defence for workers impacted by job loss. It functions as an automatic economic stabilizer during recessions, injecting billions into the economy through benefits paid.
How many Types of EI Benefits?
There are eight types of EI benefits available to support Canadians during temporary periods of unemployment or inability to work:
Regular Benefits
Regular EI benefits provide income support to individuals who lost their jobs unexpectedly due to reasons beyond their control, such as corporate downsizing or employer bankruptcy.
To receive regular EI benefits, you must be available and actively searching for suitable full-time employment. You are expected to take any reasonable job offer you are qualified for.
Regular EI generally provides between 14 and 45 weeks of benefits, depending on regional unemployment rates and your previous job tenure.
Sickness Benefits
EI sickness benefits offer income replacement if you are unable to work for medical reasons. These could include personal illness, injury, or quarantine. Pregnant women may also qualify within certain timeframes.
To claim EI sickness benefits, you must provide a medical certificate completed by your doctor. The note must confirm you are unfit to work for medical reasons and indicate the expected duration.
Sickness EI benefits can provide up to 26 weeks of financial assistance, covering 55% of your average weekly earnings, to a maximum of $695 per week. (Source)
Maternity and Parental Benefits
EI maternity and parental benefits help eligible parents who must take time off work following the birth or adoption of a child.
For biological mothers, maternity benefits can start as early as 12 weeks before the expected delivery date and end as late as 17 weeks after. Parental benefits for both parents then offer an additional 35 weeks of income support to bond with and care for the newborn or newly adopted child.
Adoptive parents who do not receive maternity benefits can access up to 35 weeks of adoptive parental benefits. An adoptive parent cannot receive more than 35 weeks of parental benefits in total per adoption.
Parents claiming maternity and parental EI benefits must attest that they will be the primary caregiver for the newborn or adopted child during the benefit period. (Source)
Caregiving Benefits
Employment Insurance (EI) caregiving benefits provide essential financial support to individuals who need to leave their jobs temporarily to care for a family member or someone considered like family who is critically ill, critically injured, or requires end-of-life care.
EI offers three specific types of caregiving benefits, each tailored to different caregiving needs:
| Type of Benefit | Who Qualifies | Benefit Duration | Medical Certification Required |
| Compassionate Care Benefits | Caregivers providing end-of-life care (risk of death within 26 weeks) | Up to 26 weeks | A medical doctor or nurse practitioner must certify that the person has a significant risk of death within 26 weeks. |
| Family Caregiver Benefits for Adults | Caregivers assisting critically ill or injured adults (18 or older) | Up to 15 weeks | A medical doctor or nurse practitioner must certify that the person’s baseline health has significantly changed due to illness or injury, putting their life at risk and requiring caregiving. |
| Family Caregiver Benefits for Children | Caregivers assisting critically ill or injured children (under 18 years old) | Up to 35 weeks | A medical doctor or nurse practitioner must certify that the child’s baseline health has significantly changed due to illness or injury, putting their life at risk and requiring caregiving. |
Source: EI caregiving benefits – Canada.ca
Fishing Benefits
EI fishing benefits provide income support to self-employed fishers who have paid EI premiums but cannot work due to circumstances beyond their control in the fishing industry.
Qualifying reasons can include poor weather conditions, low catch, boat breakdowns, or high operational costs. Benefits may be paid based on your regional unemployment rates and earnings history.
Employment Insurance Benefits for Self-Employed People
Self-employed Canadians who have paid into EI can access special benefits like maternity, parental, sickness, compassionate care, and family caregiver benefits. They must meet specific eligibility criteria.
Employment Insurance and Teachers
Teachers can receive EI during seasonal layoffs. There are special rules for calculating weekly EI entitlement based on teaching income over the past 52 weeks before the layoff.
Employment Insurance Benefits and Farmers
Self-employed farmers pay into EI and can access special benefits like maternity, parental, sickness and compassionate care benefits when they meet eligibility criteria.
Who is Eligible for Employment Insurance?
To receive EI regular benefits, applicants must meet the following eligibility criteria:
- Lost your job through no fault (not fired for misconduct).
- You have been without work and pay for at least 7 consecutive days in the last 52 weeks.
- Worked the minimum required insurable hours during the qualifying period:
- 420 to 700 hours required, depending on the regional unemployment rate
- Qualifying period = last 52 weeks or period since the last EI claim
- Be ready, willing and capable of working each day (actively seeking suitable employment).
- Submit regular biweekly reports to confirm eligibility.
In addition to laid-off workers, individuals in the following exceptional situations may qualify for EI benefits:
- Self-employed workers who paid premiums on insurable earnings.
- Anglers who are actively seeking work.
- Teachers on seasonal lay-offs.
- Canadian Armed Forces members released from service.
- Workers who quit for just cause or due to family responsibilities.
Meeting the basic EI eligibility does not automatically guarantee you will receive benefits. Each application is assessed individually for eligibility based on your specific circumstances.
How Much Can You Receive from EI Benefits?
The amount you receive depends on your recent earnings and the unemployment rate in your region.
Your EI benefit amount is calculated as a percentage of your average weekly insurable income up to a set maximum.
- Percentage of Earnings: You will receive approximately 55% of your average weekly insurable earnings.
- Maximum Weekly Amount: As of 2025, the maximum amount payable is $695 per week, based on yearly insurable earnings of $65,700.
- You can find the unemployment rate for your region by visiting EI Program Characteristics.
If you remain uncertain about the amount of EI benefits you will receive, please see the formula below for clarification:
Total insurable earnings for the required number of best weeks ÷ Total insurable earnings for the required number of best weeks × 55% = Weekly EI benefit rate (maximum $695)
To get a better idea of how much you could receive, use the EI Benefits Estimator available on the Government of Canada website. This tool can help you determine whether EI benefits meet your needs and provide an estimate of your potential entitlement.
Are Employment Insurance Benefits Taxable?
Yes, EI benefits received are considered taxable income in Canada.
Individuals who collect EI will receive a T4E tax slip from the federal government documenting the total amount of their benefits for the tax year. Taxes are automatically deducted from EI payments when claimants choose this option.
The tax rate on EI benefits will depend on your total annual income and personal tax situation. EI benefits get added to your taxable income, potentially bumping you into a higher tax bracket.
It’s important for EI recipients to consider how benefits may impact their overall tax bill when filing. Setting aside funds to cover potential taxes owing on EI income is advisable.
Canadians can estimate their EI insurable earnings and potential EI benefit amount using the EI Benefits Online Calculator. This can help anticipate taxes payable on EI income received.
Being strategic with income sources while on Employment Insurance can help minimize taxes owed. For example, withdrawing RRSP funds while collecting EI could lead to significant tax bills.
When Should You Apply for Employment Insurance Benefits?
To avoid delays, it is advisable to apply for EI benefits as soon as you stop working.
Many workers incorrectly believe they need to obtain their Record of Employment (ROE) from their employer first before filing for EI. This is not the case. Your ROE can be submitted after your application.
Here are some guidelines on when to file your EI claim:
- Apply immediately – Submit your claim as soon as your job ends, even if you are still owed wages or vacation pay. Do not delay filing.
- You can apply without an ROE – While an ROE is required, it can be submitted after filing. Acquire this from your employer ASAP.
- No need to wait for severance – Apply immediately and report any severance amounts later. Severance may impact your benefit amount.
- File quickly – Apply early to get benefits flowing faster, even if your last day is a few weeks out.
Filing your EI claim promptly ensures your benefits kick in as soon as you become eligible. As the application can take 28 days to process, applying early provides peace of mind.
Delaying your EI application can cost you significant benefits. You generally can only receive payments retroactively for weeks after filing.
Is EI Available to the Self-Employed?
Certain Employment Insurance benefits are accessible to self-employed Canadians who have opted into the program and paid Employment Insurance premiums on their income.
Special benefits, such as maternity, parental, sickness, compassionate care, and family caregiver benefits, are available to eligible self-employed individuals who register for EI coverage.
For regular Employment Insurance benefits, self-employed workers must also register and pay premiums for at least 12 months before collecting benefits. They must have temporarily ceased operations due to a shortage of work.
To access Employment Insurance unique benefits, self-employed persons must have earned at least $7,750 in insurable earnings in the last 52 weeks or since their last EI claim. Other eligibility criteria also apply.
The bottom line
Employment Insurance provides a crucial financial lifeline to Canadian workers and families when job loss strikes. Understanding Employment Insurance eligibility, benefits and application process ensures you can access this support system if needed.
Frequently Asked Questions about Employment Insurance in Canada
Q: How and where can I apply for regular EI benefits?
A: You need to submit an online application for EI, which you can do from home, a public internet site like a library, or a Service Canada Centre.
Q: What are the requirements to qualify for regular EI benefits?
A: Typically you need 420 to 700 insurable hours worked, depending on your location in Canada and the unemployment rate when you apply. You also need to have been without work and pay for at least 7 days in a row.
Q: How long can I get EI benefits for?
A: It depends on the unemployment rate when you were laid off and your insurable hours worked in the last 52 weeks or since your last claim, whichever is shorter. Different rules apply if you get sick or take leave while on EI.
Q: How much will I receive on EI?
A: The basic rate is 55% of your average insured earnings, up to a maximum insurable amount of $61,500 per year as of January 1, 2023. So the max payment is $650 per week. Taxes are deducted from your EI payment.
Q: When should I apply for EI?
A: The day you are laid off. You have 4 weeks after your last day of work to apply. Delaying risks losing benefits. Submit an online application from home, a library, or Service Canada Centre.
