Canada’s Employment Insurance program provides financial support, which can include cash benefits, to help workers who suffer a serious injury or illness while on the job. These payments are known as sickness benefits. This article explains what employment insurance is, how it operates, and some of the reasons why you may qualify for assistance from the program.
What is Employment Insurance?
Employment Insurance (also known as EI) is a federal program that provides financial support to unemployed workers who incur a job-related injury or illness. It can also assist with ongoing medical costs when the worker is unable to work due to a medical condition. EI benefits are provided for a limited period, typically 26 weeks, but can be extended based on the needs of the recipient.
How does Employment Insurance Work?
To receive benefits through EI, you must be out of work due to a job-related injury or illness and meet additional criteria. Once you satisfy these conditions, EI will pay you regular benefits while you look for a new job. EI will also pay you a sickness benefit while you are receiving treatment. The amount of benefits you receive depends on the number of weeks that you are out of work and on several other factors, including your occupation and the state of the economy at the time.
Eligibility for Employment Insurance
To be eligible for EI benefits, you must be unable to work due to a work-related injury or illness. The injury or illness must be of sufficient severity that it prevents you from performing the duties of your job.
Other Considerations for Qualifying for Employment Insurance Benefits
You can qualify for benefits even if you are self-employed. If you own your own business, you can still receive EI benefits if you lose your job as a result of the business becoming unable to operate. EI benefits are not payable for vacation or holidays, for wages owed for a period that is more than 13 weeks, or for wages owed for an indefinite period.
How Much Does Employment Insurance Pay?
EI weekly benefit amounts are calculated using a formula that takes into account the recipient’s weekly earnings, weeks of employment, and the unemployment rate in the geographical region where the recipient is searching for work.
Coverage and Duration of Employment Insurance Benefits
EI benefits paid to individuals are taxable. Benefits paid to you as the employer are not. The maximum weekly amount of insurable benefits payable in a 52-week period is $563, and in a 26-week period, it is $420. The weekly amount is lower if the recipient is under the age of 20. The maximum amount payable to an 18-year-old who has been out of work for less than 13 weeks is $121. EI benefits paid to recipients over the age of 65 can be payable for up to 30 years. Some EI recipients may be able to qualify for benefits for a longer period of time. If you are eligible for the Extended sickness benefits option, EI will pay you 90% of your average weekly insurable earnings for up to 18 weeks.
Deductions from Employment Insurance Benefits Available to Recipients
If you are receiving EI benefits, the program will deduct from your benefits a certain amount if you receive income from other sources. For example, if you are receiving disability benefits and also receive $50 from a friend as a gift, EI will deduct $50 from your disability benefit.
Future of the Canadian Labour Market and Changes to the Program
EI is overseen by the federal Minister of Human Resources and Social Development Canada, and changes to the program are governed by federal legislation. The legislation governing EI is the Canada Labour Code, which came into effect on January 1, 1964. Under the Canada Labour Code, the program is provided as part of a social security system that includes the Unemployment Insurance program, the Canadian Pension Plan, the Old Age Security program, the Workers’ Compensation program, and the Provincial and Territorial programs for sickness and medical benefits for workers.
Conclusion
Employment Insurance can provide financial support to help you pay medical bills or temporarily return to work after a job-related injury or illness. To be eligible, you must be unable to work due to a job-related injury or illness. The amount of benefits you receive is based on a formula that will take into account your earnings and the state of the Canadian labor market.
The program is funded by premiums paid by workers and employers. The number of premiums has been increasing in recent years, but these increases are now being moderated by the conditions in the economy. Changes will be made to the Employment Insurance program in the future, but there is no indication that these changes will affect most Canadians.
