How to Apply for Employment Insurance (EI) in Canada After Being Laid Off
If you’ve recently been laid off in Canada, you may be eligible for financial support through the federal government’s Employment Insurance (EI) program. This program offers temporary financial assistance to individuals who have lost their jobs for reasons beyond their control, such as layoffs or company closures.
In this guide, we’ll cover everything you need to know about eligibility, the application process, and payment details for EI benefits.
What is Employment Insurance (EI)?
Employment Insurance (EI) is a Canadian government program designed to replace part of your income during periods of unemployment. The Regular Benefits program specifically offers financial support to individuals who lost their jobs for reasons beyond their control.
In 2024, eligible individuals can receive up to $668 per week in EI benefits, depending on their previous income and other factors.
Are Temporary Foreign Workers Eligible for EI?
Yes, temporary foreign workers in Canada can qualify for EI benefits if they meet the following criteria:
They have a valid work permit (either open or closed).
They meet other eligibility requirements (outlined in the next section).
Important Notes:
If you have an open work permit, you can receive EI benefits as long as your permit is valid.
If you have a closed work permit, you may still qualify, but it’s more complicated because your permit is tied to a specific employer.
Am I Eligible for Employment Insurance?
To receive regular EI benefits, you must meet the following criteria:
Insurable employment: Your employer must have deducted EI premiums from your pay.
Sufficient insurable hours: You must have worked between 420 to 700 insurable hours in the past 52 weeks, depending on your regional unemployment rate.
Job loss beyond your control: You lost your job due to reasons like layoff, workforce reduction, or company closure.
No pay for at least 7 consecutive days: In the past 52 weeks, you must have gone at least one full week without receiving any income.
Availability for work: You must be ready, willing, and able to work each day.
Actively seeking employment: You must demonstrate active efforts to find a job and keep records of your job search activities.
Residency in Canada: You must usually be residing in Canada (unless you can prove you are still available for work while temporarily outside the country).
Exceptions:
Severance pay: If you received severance, you can still apply immediately, but your benefits will begin only after the severance period ends.
Voluntary resignation or misconduct: You are not eligible if you quit voluntarily or were dismissed due to misconduct.
How Much EI Will I Receive?
The amount of your EI benefits depends on:
Your average weekly insurable earnings (before taxes and deductions).
The unemployment rate in your region at the time of application.
EI Payment Calculation:
The basic rate is 55% of your average weekly insurable earnings.
The maximum insurable earnings in 2024 is $63,200, making the maximum weekly EI payment $668.
Income Tax:
EI benefits are taxable, so income tax will be deducted from your payments. Depending on your annual income, you may owe additional taxes.
How Long Will EI Benefits Last?
The duration of your EI benefits depends on:
Regional unemployment rate: Higher unemployment may extend the benefit period.
Insurable hours worked: More hours may mean a longer eligibility period.
Generally, EI benefits are paid for 14 to 45 weeks.
What Should I Do After Being Laid Off?
To receive EI, follow these steps immediately after losing your job:
Step 1: Apply Immediately
Submit your application online via the Service Canada website.
Before starting your application, prepare:
Social Insurance Number (SIN)
Bank account details (for direct deposit)
Employment details (job title, employer name, employment dates)
Mailing and residential address
The application takes about one hour. If you pause midway, your information is saved for 3 days.
Step 2: Review Your Record of Employment (ROE)
Your employer must issue your ROE within five calendar days after your last pay period.
If the ROE is submitted electronically to Service Canada, no action is needed.
If you receive the ROE directly, you must send it to Service Canada yourself.
Step 3: Respond to Additional Information Requests
Service Canada may contact you by email for more information. If so, you must contact them directly.
Step 4: Wait for a Decision
Service Canada typically processes EI applications within 28 days. You can track the status by logging into your My Service Canada Account (MSCA).
Step 5: Submit Bi-Weekly Reports
Once approved, you must submit bi-weekly reports online to continue receiving benefits.
After applying, you will receive a four-digit access code by mail. Use this code along with your SIN to submit your reports.
You must include details about any income or job search activity during each reporting period.
When Will I Receive My EI Payments?
There is a one-week waiting period before benefits begin. For example, if you qualify for five weeks of benefits, you will be paid for four.
Payments are issued immediately after submitting your bi-weekly reports and typically take 2–3 business days to arrive in your bank account.
What If I Find a Part-Time Job While Receiving EI?
If you get a part-time or contract job, you may still receive EI benefits, but your income will affect your payments:
50% Reduction Rule: For every dollar earned, your EI is reduced by 50 cents.
90% Earnings Cap: You can earn up to 90% of your previous weekly insurable earnings and still receive partial EI.
If you earn more than the 90% cap, the excess amount will be deducted dollar-for-dollar from your EI benefits.
How Do I Create a My Service Canada Account (MSCA)?
The My Service Canada Account (MSCA) lets you manage your EI claim, track payments, and update your banking info.
Conclusion
Losing a job can be stressful, but Canada’s EI program offers essential financial support during unemployment. By understanding the eligibility rules and following the steps outlined above, you can navigate the process smoothly and access the benefits you need.