EI Pilot Project No. 25 rules

Summary#

The Regulations Amending the Employment Insurance Regulations (Pilot Project No. 25) set up a one‑year pilot that continues and expands temporary Employment Insurance (EI) flexibilities for people who lose work during a period of economic disruption. The main effects are faster access to EI payments, temporary protection from reductions when people get separation pay, and extra weeks of benefits for some long‑tenured workers.

What it does#

• Establishes Pilot Project No. 25 under the Employment Insurance Regulations to test temporary EI measures when major economic changes affect jobs. It takes effect on October 11, 2026.
• Waives the one‑week waiting period so claimants can be paid from the first week of unemployment. This applies to claims with benefit periods beginning between October 11, 2026 and October 9, 2027.
• Stops separation payments (like severance) from being counted against EI benefits for claims whose benefit period begins between October 11, 2026 and October 9, 2027. That avoids delays or reductions in EI when people receive separation pay.
• Gives an extra 20 weeks of regular EI benefits to qualifying long‑tenured workers for benefit periods that begin between October 11, 2026 and June 12, 2027 (raising some entitlements up to 65 weeks).
• Simplifies how reasons for past job separations are treated for claims starting between October 11, 2026 and October 9, 2027: only the most recent separation is examined when determining eligibility and benefit amounts.
• Places an overall limit so a benefit period still cannot exceed 104 weeks when combined with other extensions.

Who's affected#

• Unemployed people who apply for EI between October 11, 2026 and October 9, 2027.
• Long‑tenured workers (rules define who qualifies) with claims beginning no later than June 12, 2027. They may get up to 20 extra weeks.
• People who receive separation payments (for example, severance) and would otherwise have those payments reduce or delay EI.
• Workers in tariff‑exposed and trade‑sensitive industries (for example, the automotive, steel, aluminum and softwood lumber sectors) are likely to be among those who benefit, because the pilot is aimed at tariff‑related job disruptions.
• Service Canada and Employment and Social Development Canada, which will run and administer the pilot.
• The EI Operating Account and contributors to EI: the government estimates extra program costs and a small increase in premiums for workers and employers.

Why it matters#

• Claimants can get money sooner. Waiving the one‑week waiting period and not offsetting separation payments reduce the immediate income shock after a layoff.
• Some long‑standing workers get more time on benefits. The extra 20 weeks can help people who stay unemployed longer because of sectoral disruptions.
• The simplified rules on past separations make it easier for people who left an earlier job (for reasons that might otherwise hurt eligibility) to get support and move to new work. That is intended to support job mobility.
• The pilot is meant to be temporary and to produce evidence on whether these measures help during big economic shocks. The government estimates the present‑value of additional benefits paid at $2,408.4 million, the present‑value of costs at $2,481.0 million, and a net present‑value cost of $72.6 million over four years.
• There is a modest premium effect: the analysis says this would add about 1.4 cents per $100 of insurable earnings to employee EI premiums and 2.0 cents per $100 to employer rates to help cover costs.

If anything in the source above is unclear about who exactly qualifies as a “long‑tenured worker” or how individual calculations will work, the pilot rules set out the specific definitions and will be applied when people make claims.