Employment Insurance (EI) Complete Guide 2025

Updated March 2025 • 12 min read

Employment Insurance (EI) is a federal program that provides temporary income replacement to Canadians who lose their jobs through no fault of their own. Understanding EI thoroughly helps you get what you're entitled to and avoid costly mistakes.

Types of EI Benefits

EI covers several types of income interruption:

• Regular benefits: For job loss due to layoff or shortage of work
• Maternity benefits: 15 weeks for birth mothers
• Parental benefits: Standard (40 weeks at 55%) or extended (69 weeks at 33%)
• Sickness benefits: Up to 26 weeks for illness, injury, or quarantine
• Compassionate care benefits: Up to 26 weeks to care for a gravely ill family member
• Family caregiver benefits: For caring for a critically ill adult (up to 15 weeks) or child (up to 35 weeks)
• Fishing benefits: Special rules for self-employed fishers

EI Regular Benefits: Eligibility

To qualify for regular EI benefits you must:

• Have worked enough insurable hours in the past 52 weeks (or since last EI claim, whichever is shorter)
• Have lost your job through no fault of your own (layoff, end of contract, shortage of work)
• Be available for work and actively looking for employment
• Have experienced a reduction of more than 40% in normal weekly earnings

Insurable Hours Required

The minimum hours required depends on the regional unemployment rate in your area:

• Regions with lower unemployment rates (under 6%): 700 hours required
• Regions with higher unemployment rates (13.1% and above): 420 hours required
• Maternity and parental benefits: 600 hours (anywhere in Canada)
• Sickness benefits: 600 hours

The qualifying period is the shorter of the past 52 weeks or the time since your last EI claim began.

How Much EI Pays

Regular EI pays 55% of your average insurable weekly earnings. Average insurable earnings are calculated by dividing your total insurable earnings over a set number of weeks (the divisor) by the number of weeks in the calculation period.

• Maximum insurable earnings 2025: $63,200/year
• Maximum weekly benefit 2025: approximately $668/week before tax

EI is taxable income. Federal and provincial income tax is withheld from your benefit payments.

How Long Do Benefits Last?

Regular EI benefit duration (14–45 weeks) depends on:

• The regional unemployment rate at the time you file your claim
• The number of insurable hours you worked in the qualifying period

Regions with higher unemployment rates allow longer benefit periods. The maximum is 45 weeks in regions with the highest unemployment rates.

The Waiting Period

There is a mandatory 1-week unpaid waiting period at the start of every EI claim. No benefits are paid for this week. You still file a report for this week but receive nothing. Some employer supplemental plans cover this week; check your employment contract.

Voluntary Quitting and Dismissal for Cause

If you quit voluntarily without just cause, you are generally disqualified from receiving regular EI benefits. "Just cause" for quitting includes: sexual harassment, significant change in work duties, unsafe working conditions, or an employer asking you to commit an illegal act.

If dismissed for misconduct, you may also be disqualified. Being laid off is not misconduct — only willful wrongdoing that led to dismissal qualifies as disqualifying misconduct.

How to Apply

1. Apply online at canada.ca/ei as soon as you stop working
2. Have your SIN ready, banking information for direct deposit, employment history for the past 52 weeks
3. Your employer must issue a Record of Employment (ROE) within 5 calendar days of your last day; large employers submit electronically to Service Canada
4. Submit your application before your ROE if necessary — do not wait
5. After approval, file bi-weekly reports (claimant reports) to maintain your claim

Bi-Weekly Reports

While on EI, you must file a claimant report every two weeks. The report asks whether you worked, earned any money, were available for work, and conducted job search activities. Missing a report can suspend your benefits. File online or by automated phone system.

Working While on EI

You can work while receiving regular EI benefits through the "Working While on Claim" provision. You keep 50 cents of your EI benefit for every dollar you earn, up to 90% of your original weekly insurable earnings. Earnings above 90% are deducted dollar-for-dollar from your benefits. This allows you to take temporary or part-time work without losing all your EI.

EI and Self-Employment

Normally, self-employment income does not qualify for EI. However, self-employed Canadians can voluntarily register for the EI self-employment benefits program to access maternity, parental, sickness, compassionate care, and family caregiver benefits. You must register at least 12 months before claiming and pay EI premiums on your self-employment income.

EI Premiums

EI premiums are deducted from every paycheque for insurable employment. The 2025 employee premium rate is 1.64% of insurable earnings (up to $63,200/year), for a maximum annual premium of $1,049. Employers pay 1.4 times the employee rate.

Common EI Mistakes to Avoid

• Waiting too long to apply — every week you delay is potentially a week of benefits lost
• Not filing claimant reports — this suspends your claim
• Not reporting earnings — all earnings must be reported; unreported earnings can result in repayment demands and penalties
• Not being available and looking for work — EI requires active job search