Employment Insurance Benefits Raised and Extended

Summary#

This bill would change Canada’s Employment Insurance (EI) program to broaden access, raise benefit levels, and extend benefit durations. It creates a new Employment Insurance Fund, changes how benefits are financed, and removes the waiting period. Some sections are deemed in force on January 1, 2025.

• Raises the 2023 maximum yearly insurable earnings (MIE) to CAD $86,100 and indexes it going forward (Bill s.4(1)–(3)).
• Increases the benefit rate from 55% to 60% of weekly insurable earnings and uses the best 12 weeks to calculate earnings (Summary (h); Bill s.14(1)–(2); s.17).
• Extends sickness benefits from 26 weeks to 50 weeks and removes the “combined weeks” cap of 50 for mixing regular and special benefits (Summary (e), (f); Bill s.12(3)(c); s.10(13.02); s.12(6)–(7) repealed; ss.13, 13.1 repealed).
• Adopts hybrid eligibility based on total hours or on at least 14 hours per week for 12 weeks, and replaces the benefit weeks table (Summary (b), (d); Bill s.7(2)(b); Schedule I).
• Adds domestic violence, assuming parental responsibilities, and return to education as “just cause” to leave a job; adjusts rules on availability while in education (Summary (i); Bill s.29(c); s.18(1)(b.1), (3)).
• Establishes the Employment Insurance Fund; pays regular benefits from the Fund and special benefits from the Consolidated Revenue Fund (CRF) (Summary (j); Bill s.70.2; s.77(1), (1.1)).

What it means for you#

• Households and workers

  • Higher potential benefits: With MIE set at $86,100 and a 60% rate, the maximum weekly benefit would be about $993 (0.60 × 86,100 ÷ 52) (Bill s.4(1); s.14(1); s.17).
  • No waiting period: The Act repeals the waiting period concept, so benefits start right away, with related transitional clauses (Summary (b); Bill s.6(2) repealing “waiting period”; s.153.191).
  • Easier earnings calculation: Benefits are based on your highest 12 weeks of insurable earnings in the qualifying period, which can help workers with variable hours (Bill s.14(2)).
  • Longer support if ill: EI sickness benefits increase up to 50 weeks (Summary (f); Bill s.12(3)(c)).
  • Combining benefits: The cap that limited combined regular and special benefits to 50 weeks is removed; your benefit period can be extended by up to 26 weeks to use your full entitlement (Summary (e); Bill s.10(13.02)).
  • Qualifying: You can qualify either by total hours or by at least 14 hours per week for 12 weeks, with required levels tied to regional unemployment (Summary (b); Bill s.7(2)(b); Schedule I).
  • Shorter penalties: Disqualification for certain violations is capped at six weeks and cannot be carried forward past the end of the benefit period (Bill s.28(1), (4); s.30(2)).
  • Timing: Some sections are deemed in force on January 1, 2025 (Coming into Force).

• Employers and payroll administrators

  • Higher insurable earnings ceiling: EI premiums apply to a larger share of each worker’s earnings, up to $86,100 for 2023; future years index by average weekly earnings (Bill s.4(1)–(3)).
  • Premium setting: The Commission must set the annual premium rate to break even over a seven‑year period (Bill s.66(1)).
  • Financing split: Regular EI benefits are paid from the EI Fund; special benefits are paid from the CRF (Bill s.77(1), (1.1)).

• Parents, caregivers, and students

  • Parental leave and qualifying: Your qualifying period can be extended if you were unavailable for work because of parental leave (Bill s.8(2)(a.1)).
  • Parental benefits sharing: Weeks can be divided between parents up to 40 weeks (standard) or 69 weeks (extended), consistent with prior structure, with technical updates (Bill s.23(4)).
  • Education: Leaving work to return to education is added as “just cause,” which can prevent disqualification for quitting; those receiving maternity/parental benefits are not disentitled due to return to education (Bill s.29(c)(vi.1); s.18(1)(b.1), (3)).

• Survivors of domestic violence

  • Leaving for safety: Domestic violence is added as “just cause” to leave employment, which can protect access to EI if other criteria are met (Bill s.29(c)(i.1)).

• Seasonal and variable‑hours workers

  • Benefit duration table updated: The new Schedule I adjusts maximum weeks of regular benefits by regional unemployment and your insured weeks/hours, with the maximum rising to 52 weeks (Summary (d); Bill Schedule I).
  • Seasonal workers: The Act maintains a specific exception framework for seasonal workers within the general maximum weeks rule (Bill s.12(2.3)).

Expenses#

Estimated net cost: Data unavailable.

• No official fiscal note identified. The bill does not set a dollar appropriation.
• Financial mechanisms and drivers (from bill text):
  • Sets 2023 MIE at CAD $86,100 and indexes annually (Bill s.4(1)–(3)).
  • Raises benefit rate to 60% and bases benefits on best 12 weeks, increasing average payouts (Summary (h); Bill s.14(1)–(2)).
  • Increases sickness benefits up to 50 weeks and removes the 50‑week combined cap, likely increasing total weeks paid (Summary (e), (f); Bill s.12(3)(c); s.10(13.02)).
  • Pays regular benefits from the Employment Insurance Fund and special benefits from the CRF (Bill s.77(1), (1.1)).
  • Caps Part II (employment benefits and support measures) at 0.8% of insurable earnings each year (Bill s.78).
  • Premium rate must break even over 7 years, affecting employer/employee contributions (Bill s.66(1)).

Proponents' View#

• Improves adequacy of support: Raising the replacement rate to 60% and using the best 12 weeks makes benefits closer to recent earnings, especially for variable‑hours workers (Summary (h); Bill s.14(1)–(2)).
• Extends help during illness: Expanding sickness benefits from 26 to 50 weeks helps people facing longer recoveries (Summary (f); Bill s.12(3)(c)).
• Speeds up access: Removing the waiting period gets money to claimants sooner when they lose work (Summary (b); Bill s.6(2) repealing “waiting period”; s.153.191).
• Broadens eligibility: Hybrid hours/weeks criteria and an extended qualifying period for those on parental leave make EI more accessible (Summary (b), (c); Bill s.7(2)(b); s.8(2)(a.1); Schedule I).
• Supports family safety and caregiving: Adding domestic violence, assuming parental responsibilities, and return to education as “just cause” reduces penalties for necessary life changes (Summary (i); Bill s.29(c)).
• Clarifies financing and oversight: Creating the EI Fund, paying special benefits from the CRF, seven‑year premium‑rate balancing, and Auditor General audits improve transparency and stability (Summary (j); Bill s.70.2; s.77(1), (1.1); s.66(1); Consequential Amendment s.29).

Opponents' View#

• Higher payroll costs: Raising the insurable earnings ceiling to $86,100 means employers and employees pay premiums on more earnings; benefit enhancements may push premium rates higher despite seven‑year smoothing (Bill s.4(1)–(3); s.66(1)). Data unavailable on net premium impact.
• Greater federal fiscal exposure: Moving special benefits to the CRF shifts costs from EI premiums to general revenues, increasing pressure on the federal budget (Bill s.77(1.1)). Data unavailable on annual amounts.
• Potential work‑disincentive effects: A higher replacement rate, longer durations (up to 52 weeks of regular benefits per Schedule I), and no waiting period could raise program use and time on claim (Bill s.14(1); Schedule I; s.6(2) repealing “waiting period”).
• Administrative and transition risks: Overhauling eligibility (hours or weeks), replacing schedules, removing claimant categories, and creating a new Fund may cause implementation complexity and errors during transition (Bill s.7(2)(b); Schedule I; s.70.2; Transitional Provisions).
• Verification challenges: New “just cause” grounds such as domestic violence and return to education could be harder to assess consistently, raising risks of disputes and appeals (Bill s.29(c)).
• Uncertain effective dates for some provisions: Only certain sections are specified to take effect on January 1, 2025; timing for others is not stated in the provided clauses, creating planning uncertainty (Coming into Force).