Employment Insurance Canada: EI benefits in 2025
Do you plan to break a leg? Or do you plan to set your house on fire? Hopefully, the answer is a resounding no. However, life can be unpredictable and often has other plans for us. That's why insurance exists—to provide us with a safety net for those unexpected moments.
The Employment Insurance (EI) program in Canada embodies this principle, offering vital support to Canadians navigating through life's transitions. Whether it's changing career paths, starting a family, recuperating from a personal injury, or caring for a loved one, EI is designed to help.
In this guide, we look at everything about EI benefits. What qualifies for EI sick benefits? What to do when EI sick benefits run out? How to calculate EI benefits? How to apply for EI benefits? Find answers to all this and more.
EI benefits: Key Takeaways
- EI supports Canadians during unemployment and various life events.
- Qualification for EI benefits requires recent work and meeting specific conditions.
- EI benefits up to 55% of earnings, capped at $695/week.
- Duration varies from 14 to 45 weeks, based on regional unemployment rates.
- EI sickness benefits increased to 26 weeks starting January 2025.
- Application is available online at Canada.ca, with direct deposit for payments.
What is Employment Insurance in Canada?
Employment Insurance (EI) provides income support for unemployed Canadians, as well as Canadians who are temporarily away from work due to various life events. Canadians who would like to use the EI program must have worked recently and meet certain conditions to qualify for benefits.
Qualifying events can vary, check the list below to see if your situation applies:
- Job lost through no fault of your own
- Pregnancy
- Newborn or adoption care
- Critical illness or injury care
- Personal Illness
- Family member care in cases of serious illness or close-to-death care
The Employment Insurance Canada program is overseen by the Canada Employment Insurance Commission (CEIC). The CIEC is responsible for annual EI premium rates as well as reviewing and approving policies.
EI benefits can help keep people financially afloat for 14 to 45 weeks. People out of work due to illness or an injury can in some cases claim EI sickness benefits if they don’t already have them through work or private critical illness insurance or disability insurance. They provide 55% of your earnings (to a maximum of $695 per week) for up to 26 weeks.
Alternatively, you could also consider long-term disability insurance and short-term disability insurance plans from private providers to bridge the gaps left by the Employment Insurance Canada program.
Important Updates to Employment Insurance (EI) for 2025
Starting January 1, 2025, there are some key changes to the EI program. Here's what you need to know:
Maximum Insurable Earnings (MIE) Increase
- The maximum insurable earnings (MIE) will rise to $65,700, up from $63,200 in 2024.
- This means EI premiums will only apply to the first $65,700 of your income.
For example
If you earn $75,000 a year, you'll pay EI premiums only on the first $65,700 of your income.
EI Premium Rates
- For Employees: The EI premium rate will be $1.64 per $100 of income, up to the MIE.
- Maximum Annual Premium: Employees will pay a maximum of $1,077.48 in EI premiums in 2025 (up from $1,049.12 in 2024).
- For Workers in Quebec: The EI premium rate will be $1.31 per $100 of income, as Quebec administers its own parental benefits under the Quebec Parental Insurance Plan (QPIP).
Higher EI Benefit Rates
If you make a claim starting December 29, 2024, benefit rates will increase:
- Regular EI Benefits: The maximum weekly benefit rate will rise to $695 per week, up from $668.
- Extended Parental Benefits: The maximum weekly benefit rate will increase to $417, up from $401.
Private disability insurance can provide more comprehensive coverage than EI, including a higher percentage of your income, coverage for a longer period, and benefits for both short-term and long-term disabilities.
If you want to explore the best disability insurance plans in Canada, you can do it right here using our free comparator. Compare multiple plans and get quotes in no time.
The Superior Program by iA Financial Group is a flexible and inclusive disability insurance option offering up to $120,000 in total coverage, available to individuals working as little as 21 hours per week, with no minimum income requirement - a rare feature in this market. It accommodates a broad spectrum of occupations, from class 4A to C, and provides non-taxable monthly benefits, boosting its real value in case of a claim. Notably, it includes access to a vocational rehabilitation program, supporting the return to work after a disability. The policy can be renewed until age 70 and offers four optional riders to tailor protection to individual needs. Its design is particularly welcoming to newcomers to Canada, who often face barriers with more traditional underwriting.
Ideal profile:
Best suited for self-employed professionals, part-time workers, or recent immigrants who may not meet typical income thresholds but still want meaningful protection against income loss due to disability.
- No minimum pre-tax income required
- Non-taxable monthly benefits
- Vocational rehabilitation support included
- Renewability up to age 70
- Strong flexibility with optional riders
- Maximum coverage capped at $120,000
- Limited to occupational classes 4A to C (excludes higher-risk jobs)
- Riders not automatically included—extra cost may apply
Beneva’s Disability Insurance provides accessible coverage up to $72,000, targeting a wide range of professionals in classes 4A to B—without requiring a minimum income or medical questionnaire, making it especially easy to qualify. It can be renewed until age 65 and offers the option to combine with existing group insurance, which can increase overall benefits. A standout feature is its premium refund option, which allows policyholders to recoup some costs if no claim is made. With four optional riders, this plan is adaptable to personal and professional needs while remaining simple and inclusive.
Ideal profile:
Great for freelancers, part-time professionals, or newcomers to the workforce seeking basic, hassle-free protection—especially those looking for insurance without needing to prove income or undergo medical underwriting.
- No income or medical requirements
- Premium refund feature adds long-term value
- Can be combined with group coverage
- Four optional riders for customization
- Coverage limit of $72,000 may be too low for high earners
- Not renewable beyond age 65
- Restricted to lower-risk occupational classes (4A to B)
Canada Life’s Independence Protection Insurance stands out with an impressive maximum coverage of $300,000, making it one of the most robust individual disability insurance products available. Aimed at professional classes 4A to B, it requires a minimum net income of $35,000, balancing accessibility with comprehensive protection. The plan offers up to 120 months of benefits, a partial disability option, and a generous suite of 13 optional riders to tailor coverage. With non-cancellable terms until age 65 and no medical questionnaire required, it delivers strong stability and flexibility—particularly attractive for those with fluctuating employment patterns, like part-time or seasonal workers.
Ideal profile:
Designed for mid- to high-income earners such as self-employed consultants or gig economy professionals who meet the income threshold and want long-term, customizable protection without medical underwriting.
- Very high coverage ceiling ($300,000)
- No medical exam required
- 13 optional riders allow detailed customization
- Partial disability coverage included
- Long benefit period (up to 10 years)
- Requires minimum net income of $35,000
- Only available to occupational classes 4A to B
- Not renewable beyond age 65
How does the Employment Insurance in Canada or EI Benefits work?
EI pays a percentage of average insurable weekly earnings. This means that your EI payments will be a percentage of how much you made from your previous job up to a certain amount.
What are standard EI benefits qualifications?
To qualify for EI you and your employer must meet certain requirements. The reason for job loss will also affect your EI eligibility.
You may be eligible for EI benefits in case of:
- You lose your job through no fault of your own (e.g., layoffs).
- You’re unable to work due to illness, injury, or quarantine.
- You’re taking maternity or parental leave to care for a new child.
- You need time off to care for a critically ill or injured family member.
- You’re self-employed and qualify for special EI benefits.
You may be ineligible for EI benefits if:
- You voluntarily left your job without cause
- Were fired for misconduct
- You are participating in a labour dispute such as a strike or lockout
- You are self-employed and did not pay into the EI program
- You were arrested and are in jail or a penitentiary
Alternate types of EI Benefits
The above requirements are focused on standard EI requirements for people dealing with unemployment related to their employment status but there are ways to qualify for EI benefits.
Canadians can also apply for maternity benefits, sickness benefits, caregiving benefits, and disability benefits. These programs have their requirements and may require some kind of proof to collect.
What qualifies for EI Sick Benefits or Employment Insurance Disability Benefits?
To be eligible for EI sickness benefits or EI Disability Benefits in Canada, you need to tick off a few boxes:
- Work that Qualifies: Your job must pay into the EI program, which means both you and your employer contribute to EI.
- Break in Pay: If you've been unable to work due to illness, injury, or quarantine, you need to have gone at least a week without pay.
- Hours Worked: Over the last year or since your last EI claim, you should have worked at least 600 hours.
- Doctor's Note: You'll need a note from your doctor saying you can't work because of your health.
- Ready to Work: Even though you're applying because you're sick, you need to show you'd be looking for work if you were well.
- Earnings Drop: Your sickness should cause you to earn at least 40% less than what you usually make.
If these conditions are met, you could get EI sickness benefits, which is about 55% of your usual earnings, capped at a maximum. This support can last for up to 26 weeks, helping you financially while you can't work.
How many hours do I need for EI Benefits?
You need a minimum of 420 hours of qualifying insurable employment to be eligible for EI benefits. These hours must have been completed within 52 weeks of applying for EI benefits and within the time since you last collected EI benefits.
The unemployment rate in your area determines how many hours you will need to qualify for EI benefits. If your area has an unemployment rate of greater than 13% you will need a minimum of 420 hours.
Should your area have an unemployment rate of 6% or under you will need a minimum of 700 hours. If you have any prior EI violations the number of hours required will be higher depending on the severity of the violation.
Can you collect EI and short-term disability insurance?
No, unfortunately, you cannot collect both EI and disability insurance at the same time. Disability insurance takes priority in these cases and will supersede any EI benefits. This is good as the short-term disability lasts between 17 and 26 weeks. EI sickness benefits are, however, an option once short-term disability payments have lapsed.
What to do when EI sick benefits run out?
Employment Insurance (EI) sick benefits are limited to a maximum of 26 weeks (6 months) as of 2025. If your health prevents you from returning to work after this period, it’s essential to plan your next steps to maintain financial stability.
Steps to take when EI Sick benefits end:
- Explore Long-Term Disability Insurance (if applicable):
If you have long-term disability (LTD) insurance through your employer or a private plan, contact your insurer to begin the claims process. LTD benefits often provide income replacement for an extended period, sometimes up to age 65. - Apply for the Canada Pension Plan (CPP) Disability Benefit:
If your condition is severe and prolonged, you may qualify for CPP Disability benefits. This program provides monthly payments to eligible contributors who cannot work due to a disability.- Example: Sarah, a teacher, exhausted her EI sick benefits after six months. Her chronic illness made returning to work impossible. She applied for CPP Disability and received monthly payments to cover her essential expenses.
- Seek Social Assistance Programs:
If you don’t qualify for CPP Disability or LTD insurance, explore provincial social assistance programs. These programs offer income support for those in financial need and may include healthcare benefits. - Consider Alternative Income Sources:
- Part-Time or Remote Work: If your health permits, explore part-time or remote job opportunities that accommodate your condition.
- Employment Insurance Regular Benefits: If you were laid off from your job due to your illness, you might qualify for regular EI benefits once your sick benefits expire.
- Access Community Support Services:
Local charities, nonprofits, and disability organizations often provide financial aid, food support, or resources to help manage costs during extended illnesses. - Contact a Disability Lawyer (if needed):
If you face challenges accessing benefits, such as being denied CPP Disability or LTD claims, a disability lawyer can help appeal decisions and secure your entitlements.
Expert advice
- Understand Your Coverage: Review your insurance and workplace benefits before EI sick benefits run out.
- Apply Early: Start the application process for LTD, CPP Disability, or other programs before your EI benefits expire to avoid income gaps.
- Seek Professional Help: Consult a financial advisor, social worker, or legal professional for guidance tailored to your situation.
As you're aware, EI sickness benefits are limited to a maximum of 26 weeks, which may not be sufficient for long-term disabilities. Private disability policies can offer benefits that last until you recover, reach retirement age, or for a set number of years.
If you want to look at private disability insurance plans, you can do it right here using our free tool below. Explore the best plans in Canada and get free personalized quotes right here.
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How to calculate EI benefits?
Are you wondering, "How much EI Benefits will I get?" Calculating EI (Employment Insurance) benefits in Canada involves a few steps:
- Determine Your Average Insurable Weekly Earnings: Calculate the total amount you earned during the best weeks of your qualifying period (usually the 52 weeks before you apply). The number of weeks used in the calculation varies by regional unemployment rate.
- Calculate 55% of Your Average Earnings: EI benefits pay 55% of your average insurable weekly earnings, up to a maximum amount. As of the last update, the maximum yearly insurable earnings amount is $65,700, which means you can receive up to approximately $695 per week.
- Apply the Maximum: If your calculated benefit rate is higher than the maximum weekly amount, your benefits will be capped at the maximum.
Example of how much EI benefits you will get
Imagine you live in a region where you're required to use your 22 best weeks for the calculation, and during your best 22 weeks, you earn a total of $22,000.
- Calculate your average weekly earnings: $22,000 ÷ 22 weeks = $1,000 per week.
- Calculate 55% of your average weekly earnings: 55% × $1,000 = $550.
- Compare with the maximum weekly benefit: If the maximum weekly benefit is $695 and your calculation is $550, you would receive $550 per week since it's less than the maximum.
Remember, the exact amount you're eligible to receive can vary based on specific circumstances and the latest EI rules. Always check the current details with Service Canada or use their online calculator for a precise calculation.
How to apply for EI benefits?
If you're applying for EI benefits, go to Canada.ca and make sure you have all the required information at hand.
You will need:
- A social insurance number SIN. You may also be asked for proof of immigrant status and a work permit.
- Full legal birth name
- Mailing and residential addresses
- Banking information to receive payments via direct deposit. This will include the bank's name, transit number, and account information.
- Name, addresses, dates of employment, and reason for termination/suspension from employers going back 52 weeks.
- If you quit or were dismissed from a job you will need to write a detailed description of the reason for termination.
- Highest earnings in the previous 52 weeks or since the start of your last EI claim. This information and your record of employment ROE will be used to calculate how much your EI will pay.
After all this information is gathered you can start the application process. The application for EI benefits is available on Canada.ca. The process takes around one hour to complete. Your information will be saved for 72 hours from the time you start. If you don’t complete it in this time frame you will need to start over the process for applying for EI benefits.
Watch out!
While cyber security is constantly being updated, fake government sites still exist. Make sure to check for typos when searching Canada.ca and make sure the site is authentic before filling out any personal information while applying for EI benefits.
Can I extend my EI benefits?
Generally, you can't extend Employment Insurance (EI) benefits in Canada once they run out. However, during special situations like economic downturns or emergencies (like the COVID-19 pandemic), the government may offer extensions or additional support:
- Check with Service Canada: For the most current information on EI or any potential extensions, contact Service Canada directly.
- Look for Other Assistance: Investigate other government programs you might qualify for, including provincial support or the Canada Pension Plan Disability Benefit, if applicable.
- Explore Job Services: Use employment or training programs to help find new work opportunities.
The ability to extend EI benefits is usually quite limited, so it's important to explore all available options for support.
How to reactivate an EI claim?
Sometimes you may need or want to renew an existing EI claim from the previous 52 weeks. You will need to meet the qualification of having worked enough insurable hours and meet underlining qualifying conditions. You can apply to Canada.ca to reactivate your claim.
Good to know
Note that if you have not worked since your EI was reactivated and have fewer than four weeks left on your claim, your EI benefits should be automatically reactivated.
How long does EI take to deposit?
It will take around 4 weeks after applying to start receiving EI payments. Payments are issued every two weeks after your EI online report is completed and processed. If you sign up for direct deposit your payment will be completed within two business days. If you sign up for a mailed cheque it can take up to two weeks or longer depending on where you live and mail services in your area.
Are EI benefits taxable?
Yes, Employment Insurance (EI) benefits are taxable in Canada. This means the government considers EI benefits as part of your income, and you’ll need to pay taxes on the amount you receive. Here's a breakdown of how it works:
How are taxes applied to EI Benefits?
- Federal and Provincial Taxes: Taxes are deducted from your EI payments at both the federal and provincial levels.
- Automatic Deductions: Service Canada automatically withholds a portion of your EI benefits for taxes before sending you the payment.
- Taxable Amount: The amount deducted depends on the benefit type, your total annual income, and your tax bracket.
When do you pay taxes on EI?
- During the Year: Taxes are deducted from your EI payments while you’re receiving benefits.
- At Tax Time: You’ll need to report the total EI benefits you received on your income tax return. If too little tax was withheld, you may owe additional taxes when you file.
For example
- Situation: Sarah received $15,000 in EI benefits during the year. Service Canada withheld $1,000 in taxes from her payments.
- At Tax Time: Sarah reports the $15,000 as income on her tax return. Based on her total income and tax bracket, she owes $1,200 in taxes. Since $1,000 was already withheld, she’ll need to pay the remaining $200.
Special considerations
- Low-Income Individuals: If your total income for the year is low, the taxes withheld from your EI benefits may be refunded when you file your taxes.
- Combined Income: If you have other sources of income, like part-time work, the total income could push you into a higher tax bracket, increasing the taxes owed.
Expert advice
To avoid surprises at tax time:
- Set aside some of your EI payments for additional taxes.
- Contact the Canada Revenue Agency (CRA) or consult a tax professional for personalized advice based on your income situation.
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Are there EI benefits for self-employed?
Yes, self-employed individuals in Canada can access certain Employment Insurance (EI) benefits by voluntarily registering for the program. While traditional EI benefits, such as regular benefits for job loss, are not available, self-employed workers can qualify for special EI benefits, including sickness, maternity, parental, caregiving, and compassionate care benefits.
To be eligible, you must enroll in the EI program at least 12 months before making a claim and have earned a minimum of $8,255 in self-employment income in the previous year.
EI Special Benefits for Self-Employed
- Sickness Benefits: Up to 26 weeks if you can’t work due to illness, injury, or quarantine.
- Maternity Benefits: Up to 15 weeks for birth mothers who can’t work due to pregnancy.
- Parental Benefits:
- Standard: Up to 40 weeks (with one parent capped at 35 weeks).
- Extended: Up to 69 weeks (with one parent capped at 61 weeks).
- Caregiving Benefits: Support for caring for a critically ill or injured family member:
- Adults: Up to 15 weeks.
- Children: Up to 35 weeks.
- Compassionate Care Benefits: Up to 26 weeks to care for a gravely ill family member at risk of death.
Eligibility Requirements for Self-Employed EI Canada Benefits
- Voluntary Registration: Must register for EI at least 12 months before making a claim.
- Minimum Income: Earned at least $8,255 in self-employment income in the previous tax year.
- Regular Contributions: Pay EI premiums based on self-employment earnings.
How to cancel EI benefits?
- Contact Service Canada: Call or visit a Service Canada office to request benefit cancellation.
- Use My Service Canada Account (MSCA): Send a cancellation request online if possible.
- Provide Information: Have your Social Insurance Number and cancellation reason ready.
- Monitor for Confirmation: Watch for confirmation from Service Canada to ensure cancellation.
- Report Changes: Immediately report any employment or status changes to avoid overpayments.
