What Is Employment Insurance (EI)?
Let me explain what Employment Insurance (EI) is: it's an unemployment insurance program in Canada that gives you temporary financial help if you've recently lost your job. You can also get EI if you're unable to work because of illness or if you're caring for a young child or a seriously ill family member. Beyond the money, the program helps you with job search services to get back on your feet.
Understanding Employment Insurance (EI)
You should know that the Employment Insurance Act replaced the old Unemployment Insurance Act from 1996. This update ties your benefits more closely to your wages and reduces penalties if you can only find temporary work. To qualify, you need to have worked a certain number of hours, and how long you get benefits depends on the unemployment rate in your geographic region.
Important Aspects
Employment insurance covers a wide range of benefits if you qualify. Employers pay 1.4 times what employees contribute in premiums, and since 1990, the government hasn't added to this fund. What you receive and how long you can stay on EI depends on your previous salary, how long you worked, and the unemployment rate in your area.
For birthing benefits, EI supports biological parents, including surrogates, who can't work due to pregnancy or recent birth, as well as parents of newly adopted children. You can get up to 15 weeks of these benefits. According to the Canadian government, if your child was born or placed with you after March 17, 2019, you might qualify for 5 extra weeks of standard parental benefits or 8 extra weeks of extended ones, based on your situation.
Key Takeaways
EI benefits come from the Canadian government and include not just birthing and parental care but also up to 26 weeks of compassionate care for those who must leave work to care for a dying loved one. Broader employment benefits in Canada cover pensions, housing, training, education, family leave, and support for people with disabilities.
You can start receiving benefits as early as 12 weeks before your expected due date and up to 17 weeks after the actual birth. The weekly rate is 55% of your average weekly insurable earnings, up to a maximum.
If you're sick, injured, or in quarantine, EI sickness benefits provide up to 15 weeks of support. For compassionate care, if you need time off to care for a gravely ill family member or if you're gravely ill yourself with a risk of death, you can get up to 26 weeks.
Special Considerations
Over half of EI benefits go to Ontario and the Western provinces, but EI is particularly vital in the Atlantic provinces where unemployment is higher. Many workers there are in seasonal jobs like fishing, forestry, or tourism, so they rely on EI during the winter off-season. There are special rules that make it easier for fisherfolk to collect these benefits.
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