In Canada, workers who are laid off may be eligible for assistance through the Employment Insurance (EI) program. EI regular benefits are designed to replace part of your income as you look for new employment. For 2024, eligible claimants can receive up to $668 per week.

This comprehensive guide will answer your questions about:

  • Whether you qualify for EI regular benefits while holding a work permit in Canada.
  • The necessary eligibility criteria for accessing EI regular benefits.
  • How much you can expect to receive in EI regular benefits.
  • How to apply for EI regular benefits.
  • The timeline for receiving your EI benefits.
  • What happens to your EI payments if you return to part-time work.
  • The steps to create and manage your My Service Canada Account (MSCA).

Understanding Employment Insurance (EI) in Canada 

Employment Insurance (EI) in Canada is a government program that provides financial assistance to workers who experience a loss of income due to unemployment. The program is designed to support individuals while they search for new employment or receive training for a new career.

EI regular benefits offer temporary financial relief to individuals who have lost their job through no fault of their own. This includes situations such as being laid off, facing a shortage of work, or when your employer shuts down their business. The goal of EI regular benefits is to help workers maintain some income while they transition to new employment opportunities.

Eligibility for Employment Insurance (EI) as a Temporary Foreign Worker in Canada

Employment Insurance (EI) is not limited to Canadian citizens and permanent residents. Temporary foreign workers in Canada can also qualify for regular EI benefits, as long as they meet the necessary eligibility requirements and hold a valid work permit.

If you have an open work permit, which allows you to work for any employer in Canada, and it remains valid, you can apply for EI benefits, provided you meet all the conditions outlined by the program.

However, if you are on a closed (employer-specific) work permit, which restricts you to working for a particular employer, your ability to claim EI benefits may be more complicated. While it’s still possible to file a claim, there is a chance it could be denied due to your work status being directly tied to the specific employer listed on your permit. Despite this, there have been instances where temporary foreign workers on closed work permits were successful in receiving EI benefits, depending on their circumstances.

Additionally, temporary foreign workers who are employed by Canadian companies but work outside of Canada may also be entitled to EI benefits. However, this entitlement does not apply if their employment is already covered by the employment insurance system in the country where they are working.

Am I Eligible for Employment Insurance (EI) in Canada?

To be eligible for Employment Insurance (EI), you must meet the following conditions:

  • Have worked in “insurable employment.”
  • Have accumulated enough insurable hours within a qualifying period.
  • Have lost your job through no fault of your own.
  • Have not worked or received pay for at least seven consecutive days in the past 52 weeks.
  • Be ready, willing, and able to work every day.
  • Be physically present in Canada, in most cases.
  • Be actively seeking employment.

“Insurable employment” means your employer is required to deduct EI premiums from your wages, which should be reflected on your pay stub.

The number of insurable hours required for eligibility depends on the unemployment rate in your region, typically ranging from 420 to 700 hours of work. The qualifying period is usually the 52 weeks before the start of your claim.

If you voluntarily left your job or were terminated for cause (e.g., misconduct or poor performance), you will not be eligible for EI.

EI is designed to replace lost income, not to provide additional benefits. If you received pay in lieu of notice or a severance package, you can apply for EI, but benefits will only be available once the severance period ends.

Generally, you cannot claim EI if you’re outside Canada, but exceptions may apply if you can prove you’re available for work in Canada during your time abroad.

To continue receiving regular benefits, you must be actively job hunting and prepared to accept work. If you’re not actively seeking employment or aren’t ready to work, you’re not entitled to benefits. Keep records of your job search for Service Canada verification.

If you receive EI benefits you’re not entitled to, you will be required to repay them.

Determining Your Employment Insurance (EI) Benefit Amount

The amount you can receive from Employment Insurance (EI) depends on various factors, including your income level and the unemployment rate in your area when you file your claim.

For most claimants, EI benefits are calculated at 55% of your average insurable weekly earnings*, up to a maximum limit. The current maximum yearly insurable earnings is $63,200, meaning the maximum weekly benefit you can receive is $668. Note that EI benefits are taxable. Service Canada will withhold a portion of each payment for income taxes, and you will need to pay income tax at your marginal rate on all regular benefit payments.

*Insurable earnings are the total earnings listed on your pay slip before any income taxes or other deductions. These include wages, bonuses, tips, and other forms of compensation from your employment.

The length of time you can receive EI benefits depends on:

  • The unemployment rate in your region when you apply.
  • The number of insurable hours you’ve worked over the past 52 weeks (or since your last claim, whichever is shorter).

The duration of benefits can range from 14 to 45 weeks, based on these factors.

How to Handle a Layoff – Your Essential Next Steps

Step 1: Apply Right Away

As soon as you’re laid off, it’s important to apply for Employment Insurance (EI) without delay, as it may take some time before your benefits are processed. You can apply online, and you’ll need to provide the following details:

  • Your Social Insurance Number (SIN)
  • Bank account information
  • Employment history
  • Your residential and mailing address
  • Personal information

Filling out the application typically takes around an hour. If you pause the application before submitting, the information you’ve entered will be saved for up to three days, allowing you to resume. However, if you don’t finish the application within three days, the data will be deleted, and you’ll need to start again.

Step 2: Check Your Records of Employment (ROEs)

Your former employer must provide you with your Records of Employment (ROEs), which are necessary for Service Canada to determine your eligibility for EI benefits. The employer should issue the ROE within five calendar days after your final pay period. They may send it to you directly or to Service Canada.

If the ROE is sent to you, make sure to submit it to Service Canada. It’s advisable to apply for EI as soon as possible, even if you haven’t yet received your ROE, to avoid any delays.

Step 3: Respond If Contacted for More Information

Service Canada may reach out via email if they need additional information. They will most likely ask you to call them. Remember, they will not request further details by email.

Step 4: Wait for the Decision

The government will typically make a decision about your claim within 28 days of submission. You can track your application’s status by logging into your My Service Canada Account (MSCA). Make sure your banking and contact details are up to date.

Step 5: Submit Bi-Weekly Reports

Once your claim is approved, you’ll need to submit bi-weekly reports to Service Canada to continue receiving benefits. You’ll receive a four-digit code in the mail, which, along with your SIN, is required to complete these reports. If you start working or earn money during this time, you must report this in your bi-weekly updates.

How Long Until Your EI Benefits Are Deposited into Your Account?

You must wait one week before becoming eligible to receive Employment Insurance (EI) benefits. As a result, if you are laid off, you’ll receive four weeks of benefits for the five-week period following your job loss. Payments will be processed once you submit your bi-weekly report. Expect to see the funds in your account within 2-3 business days after your report is submitted.

EI payments will stop when:

  • The payment period concludes.
  • You’ve received the full amount of benefits available to you.
  • You choose to cancel your claim and start a new one.
  • You fail to submit your bi-weekly reports.
  • You secure a new full-time job.

How Does Part-Time Work Affect Your EI Benefits?

Even if you take on part-time or contract work while receiving Employment Insurance (EI), you may still be eligible for benefits.

You must report any earnings from work in your bi-weekly reports. For every dollar you earn, your EI benefits will be reduced by 50 cents. This means you can earn up to 90% of your weekly insurable earnings, in contrast to the 55% you would receive from EI alone.

Any earnings above the 90% threshold will be deducted from your benefits on a dollar-for-dollar basis.

It’s crucial to report all income earned while receiving EI, as failing to do so can lead to overpayment, requiring you to repay the excess amount.

How to Register for a My Service Canada Account (MSCA) Online

My Service Canada Account (MSCA) is an online platform where you can access various government services and benefits, including the Canada Pension Plan (CPP), Old Age Security (OAS), and Employment Insurance (EI).

To get started, go to the official MSCA website at www.canada.ca/MyServiceCanadaAccount and follow the instructions to register for an account.

When registering or signing into your MSCA account, you have multiple options for identity verification:

  • GCKey: You can create a GCKey account with a username and password. During registration, you may be asked to provide information such as your Social Insurance Number (SIN).
  • Interac Sign-In Partner: This option allows you to use your Canadian financial institution’s online banking service to securely log into your MSCA account.
  • Provincial Digital ID: If you reside in certain provinces, such as Alberta or British Columbia, you can use your provincial digital ID for registration. For example, if you have an Alberta.ca account or a BC Services card, you can register using these credentials.

These options ensure that your identity is verified in a secure and convenient manner, giving you access to important services.

How to Set Up Your Payment and Banking Information for EI Benefits

For direct deposit setup, you can fill out the online direct deposit form, print it, and mail it directly to Service Canada. Another option is to call a Service Canada call centre or visit a Service Canada office in person.

Make sure to have your bank account number, transit number, and institution number handy. You can find this information on a cheque or by checking your online banking account.