EI, or Employment Insurance, is a federal program in Canada. It provides temporary financial assistance to people who are unemployed or, in some cases, unable to work. EI benefits offer income support to these workers while they search for their next job or upgrade their professional skills.
Changes to EI in 2025
There have been some changes to a few of the benefits covered under EI. Canada has seen some ups and downs in terms of employment and job security lately. These measures are intended to make things more comfortable for Canadians.
Maximum insurable earnings
In 2024, the maximum insurable earnings (MIE) increased to $65,700 from $63,200. EI premiums are paid up to this income level. It was increased to align with wage growth and to ensure the amount aligns with the rise in income. It is one of the main benefits of the EI program.
Premium rates
As of 2024, employers pay $2.30 per $100 of insurable earnings. On the other hand, employees will pay $1.64 per $100 of insurable earnings. The maximum annual premium for employees is now $1077.48, up from $1049.12 in 2024. The rate is maintained at 1.64% for employees based on a 7-year actuarial forecast by the federal government. This premium rate helps keep the EI account solvent as a whole.
Maximum weekly benefit
For claims made on or after December 29, 2024, the maximum weekly EI benefit rate has increased to $695 from $668.
Other EI benefits
EI also provides other benefits in addition to the regular benefits for job seekers.
- EI provides maternity and paternity benefits. You can get up to 15 weeks if you’re giving birth. Parental benefits can be extended to 40 or 69 weeks, as you can choose between standard or extended options.
- Under EI, you can get caregiving benefits for the critically ill, up to 15 weeks for adults and 35 weeks for children.
- Compassionate care EI benefits provide 26 weeks of benefits for caregivers providing end-of-life care.
- EI offers up to 15 weeks of support for illness, injury, or quarantine.
How do EI benefits work?
Employment Insurance benefits are calculated based on your highest weeks of earnings over a certain qualifying period (usually 52 weeks). There are a few things to consider before applying for employment insurance in Canada:
Eligibility for Employment Insurance
- You must have worked a minimum number of insurable hours in the past 52 weeks. EI follows the concept of “best weeks”, which are used to calculate your benefit rate. EI calculates your average weekly earnings based on your highest-earning weeks within the qualifying period.
- Based on your economic region, the unemployment rate also affects how many hours you need to work to qualify. For example, in Newfoundland and Labrador (economic region 02), you must have worked 420 hours in the past year. In Charlottetown, PEI (economic region 65), you must have worked 630 hours to qualify. It also affects the number of weeks you can receive the benefits.
- You must be facing involuntary job loss, for example, via layoffs. It does not cover firing due to misconduct. For voluntary resignations, you should have a just cause for your choice to leave.
- Must have paid EI premiums in the past year.
- Must be actively looking for work and able to work.
Application process
You can apply online on Service Canada. There is usually a 1-week waiting period. This waiting period has been temporarily waived for claims between March 30 and October 11, 2025. This is intended to help provide immediate support during times of economic uncertainty.
Amount
EI pays 55% of your average weekly insurable earnings, up to a maximum weekly benefit rate. This weekly amount is $695 as of early 2025.
If you’re self-employed, you must opt in to EI for 12+ months to access parental, sickness, or caregiving benefits. It requires a signed agreement with the Canada Employment Insurance Commission (CEIC). Quebec residents have separate rules for parental benefits under the Québec Parental Insurance Plan.
Tips
If you’re on EI and trying to get back on your feet, there are some things you can do to make the journey easier. It’s certainly a tricky situation, especially since bills aren’t going to stop coming. Here are a few tips that can help make things smoother while you handle these changes:
Administrative
- You should ideally apply as soon as possible after facing job loss. Currently, the waiting period has also been waived by the federal government. The usual waiting period is 1 week. Applying as soon as possible means you can start receiving benefits soon!
- If your company offers health insurance (maybe under Employee Assistance Programs), you can choose whether to keep those benefits or not. If you choose to keep the benefits, you will have to keep paying out of pocket. Alternatively, you can wait till your next job to get new insurance coverage. Double-check your benefits and see what you’ve been using. Then, you can make an informed decision – keep or cancel your current benefits.
- Once you start receiving EI, you need to report your total earnings, including those from other sources. If you’re doing gig work or part-time work, this income still needs to be shown. You also need to show that you’re actively looking for work.
- Check government programs, resources or community support. See what you qualify for and what kind of support is available to you. You could get job training, financial aid, or other relevant services.
Money management
- If you have received severance pay, you can still sign up for EI in the same period, as they are entirely different programs. Your severance pay/vacation pay will not reduce your EI benefits. Keep an eye on your pay stubs!
- Reach out to your creditors. They may offer deferrals while you’re looking for new work. This is especially true for mortgage providers, many of which offer deferrals. How much they will defer will depend on your lender, as well as what kind of leeway you are looking for. In most cases, they will be willing to work with you. If you have a history of timely payments, it may support your cause.
- It’s always important to stick to a budget if you have financial goals. It becomes even more important if you’ve lost your job and suddenly have a smaller amount to work with. Some conscious choices and decisions can help you manage your finances even when you’re laid off. Some helpful things to do are: reducing your discretionary spending, cancelling a few subscriptions, and evaluating how much you have saved up so far.
- You can earn additional income without losing benefits under the “Working While on Claim” provision. For every dollar earned, your EI benefits reduce by 50 cents. You can earn up to 90% of your previous weekly earnings before the EI benefits reduce dollar for dollar. If you do work a full week, you won’t be eligible for EI, irrespective of the income you earn. You don’t need to apply specifically for this provision; just declare your earnings on your EI reports.
- EI benefits are taxable. Plan for deductions accordingly so there are no surprises at tax time!
Key takeaways
Employment Insurance, also called EI, is a Canadian government initiative. It provides temporary financial assistance to people dealing with unemployment. Recently, there have been some increases to maximum insurable earnings and premium rates.
How much money you receive will be based on your average weekly earnings on your “best weeks”, your economic region, and a few more factors. It is quite important to stick to a budget and pay attention to where your money is going. You still need to pay your bills, but you can cut down on discretionary expenses for a while. This is even more important if you’re also trying to get out of debt. If you’re currently dealing with debt, you can contact one of our trained credit counsellors for advice – they can help you figure out which debt solution could be the right fit for your specific situation.
