As we safely restart Canada’s economy, the Government will be transitioning to a simplified Employment Insurance (EI) program, effective  September 27, 2020, to provide income support to those who remain unable to work and are eligible, and introducing new legislation for temporary and taxable recovery benefits to further support workers. While the Government prepares for this transition, and to ensure support continues for Canadians whose employment has been impacted by the pandemic, the Canada Emergency Response Benefit (CERB) will be extended by an additional four weeks, providing a new maximum of up to 28 weeks of benefits. More information on CERB eligibility periods can be accessed here.

Summary of temporary measures to help Canadians access EI benefits more easily:

  • 120 hours of work required to qualify
  • Minimum benefit rate of $400 per week
  • At least 26 weeks of regular benefits

Hour credits to enhance access to EI regular benefit and EI special benefits:
Access to EI benefits is normally based on the number of insurable hours an individual has worked in the year prior to their application, or since their last claim. This is known as their qualifying period. However, the Government of Canada recognizes that the pandemic has prevented many Canadians from accumulating the number of insurable hours that is normally required, and is taking action to address this. To help individuals qualify with a minimum of 120 hours of work,  EI claimants will receive a one-time insurable hours credit of:

  • 300 insurable hours for claims for regular benefits (job loss)
  • 480 insurable hours for claims for special benefits (sickness, maternity/parental, compassionate care or family caregiver)

The hours credit will also be made retroactive to March 15, 2020 for claimants who were looking to transition early from CERB to EI maternity, parental, compassionate care, family caregiver or work-sharing benefits but could not establish their EI claim due to insufficient hours. For these claimants, the qualifying period will also be extended.

The hours credit will be available for new EI claims for one year, in recognition that labour market conditions remain uncertain and will take time to stabilize.

Minimum benefit rate:
To further support clients and in addition to the above measures that will increase access to the program, new EI claimants as of September 27, 2020 will receive a minimum benefit rate of $400 per week (or $240 for extended parental benefits), if this is higher than what their benefits would otherwise be.

The EI benefit rate is typically based on a worker’s average weekly earnings before their EI claim.

However, the COVID-19 pandemic may have had a negative impact on a worker’s weekly earnings either because they lost their job or saw their hours of work reduced. The minimum benefit rate of $400 will reduce the negative impact on EI benefit rates for these workers and align with the weekly benefit rate for the new Canada Recovery Benefit.

How to apply for EI and the recovery benefits:
Canadians already receiving benefits through Service Canada will be transitioned to the EI program once they have received the maximum CERB benefits for which they are entitled, if they are EI eligible and continue to need income support.

Canadians who are currently receiving the CERB from the Canada Revenue Agency (CRA) who believe they are entitled to EI will need to apply through Service Canada after September 26.

The Canada Revenue Agency (CRA) would administer the Canada Recovery Benefits, and Canadians would be able to apply through the CRA.  In the coming weeks, the CRA will provide more details on how and when Canadians can get ready to apply at www.canada.ca/coronavirus.

Our office can assist with any individual issues with the EI transition. Please contact us at nathaniel.erskine-smith@parl.gc.ca, and our CRA caseworker will be in touch to address your concerns.

The Government intends to introduce new legislation to support the implementation of three new benefits:

  1. The Canada Recovery Benefit (CRB) will provide $400 per week for up to 26 weeks, to workers who are self-employed or are not eligible for EI and who still require income support and who are available and looking for work. This benefit will support Canadians whose income has dropped or not returned due to COVID-19. The benefit will allow Canadians to earn more income while on claim as well as include links to Job Bank, Canada’s national employment service, with career planning tools for those seeking employment. In addition, the government will be working with provinces and territories to share information to ensure that Canadians have access to tools and training opportunities to successfully return to the workforce.
  2. The Canada Recovery Sickness Benefit (CRSB) will provide $500 per week for up to two weeks, for workers who are sick or must self-isolate for reasons related to COVID-19.
  3. The Canada Recovery Caregiving Benefit (CRCB) will provide $500 per week for up to 26 weeks per household, for eligible Canadians unable to work because they must care for:
    • a child under age 12 due to the closures of schools or daycares because of COVID-19.
    • a family member with a disability or a dependent because their day program or care facility is closed due to COVID-19.
    • a child, a family member with a disability, or a dependent who is not attending school, daycare, or other care facilities under the advice of a medical professional due to being at high-risk if they contract COVID-19.

For more details on the intended legislation, you can access the government explainer here.

EI fishing benefits:
The Government is also implementing temporary measures to support self-employed fish harvesters who rely on EI fishing benefits in the off-season. These measures will allow EI fishing benefits for these workers to be calculated using either their actual fishing earnings for their current claim, or their fishing earnings from their claim for the same season from the previous year, whichever is higher.

EI premium rate freeze:
To support Canadian businesses and workers through the unprecedented challenges posed by the COVID-19 pandemic, the Government is freezing the EI premium rate for employees at the 2020 level of $1.58 per $100 of insurable earnings for 2 years. The rate for employers, who pay 1.4 times the employee rate, will also remain unchanged at $2.21 per $100 of insurable earnings.