CERB Transition to Employment Insurance (EI)Program
Hours Credits to Enhance Access to EI Regular Benefit and EI Special Benefits
Access to EI benefits is normally based on the number of insurable hours an individual has worked in the year prior to their application, or since their last claim. This is known as their qualifying period. However, the Government of Canada recognizes that the pandemic has prevented many Canadians from accumulating the number of insurable hours that is normally required, and is taking action to address this. To help individuals qualify with a minimum of 120 hours of work, EI claimants will receive a one-time insurable hours credit of:
- 300 insurable hours for claims for regular benefits (job loss)
- 480 insurable hours for claims for special benefits (sickness, maternity/parental, compassionate care or family caregiver)
The hours credit will also be made retroactive to March 15, 2020 for claimants who were looking to transition early from the CERB to EI maternity, parental, compassionate care, family caregiver or work-sharing benefits but could not establish their EI claim due to insufficient hours. For these claimants, the qualifying period will also be extended.
The hours credit will be available for new EI claims for one year, in recognition that labour market conditions remain uncertain and will take time to stabilize.
Minimum EI Unemployment Rate Across Canada
As a first step to help eligible Canadians transition from CERB back into the EI system and into the labour force, a minimum unemployment rate of 13.1% is being used for all EI economic regions in order to lower the hours required to qualify for EI regular benefits. This measure is effective for one year starting on August 9, 2020. Individuals in EI regions with an unemployment rate lower than 13.1% will have their EI benefits calculated on the basis of the 13.1% rate, while those in regions with a higher rate will have their benefits calculated using the actual higher rate.
Normally, the unemployment rate in the region in which a claimant resides at the time they file their claim determines:
- The number of hours of insurable employment a claimant needs to have accumulated in their qualifying period to be eligible for EI regular benefits – ranging from 420 to 700;
- The number of weeks of EI regular benefits a claimant may be entitled to – ranging from 14 to 45; and
- The number of best weeks of earnings that will be used to establish their weekly benefit rate – ranging from 14 to 22.
The EI system uses regional unemployment rates to determine access to EI regular benefits, given that it is generally more difficult for individuals to find new work when unemployment is higher.
In recognition that the pandemic has negatively impacted labour markets in ways that extend beyond traditional measures of unemployment, this measure will set a uniform eligibility requirement for EI regular benefits at 420 hours of insurable employment (before the hours credit is applied), provide a minimum entitlement of 26 weeks of regular benefits, and set 14 as the number of best weeks of earnings used in the calculation of the weekly benefit rate. Combined with the hours credits noted above, individuals can qualify for EI with 120 hours of work.
Minimum Benefit Rate
To further support clients and in addition to the above measures that will increase access to the program, new EI claimants as of September 27, 2020 will receive a minimum benefit rate of $400 per week (or $240 for extended parental benefits), if this is higher than what their benefits would otherwise be.
The EI benefit rate is typically based on a worker’s average weekly earnings before their EI claim. However, the COVID-19 pandemic may have had a negative impact on a worker’s weekly earnings either because they lost their job or saw their hours of work reduced. The minimum benefit rate of $400 will reduce the negative impact on EI benefit rates for these workers and align with the weekly benefit rate for the new Canada Recovery Benefit described below.
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EI measures scenario 1: regular benefits
Worker whose seasonal employment was disrupted due to COVID-19 pandemic
- Mariam lives outside of Montréal and usually works in seasonal employment from mid-June to mid-September, and is usually able to establish an EI claim based on about 900 hours of work.
- As a result of the pandemic, her hours have been cut and she has only accumulated 200 hours of work at the time of her lay off.
- Mariam does not have the hours normally required to qualify for EI regular benefits.
What could Mariam qualify for?
- As a result of the EI temporary measures Mariam has more than the minimum 120 hours of work and can qualify for at least 26 weeks of EI regular benefits at a minimum amount of $400 a week
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EI measures scenario 2: maternity and parental benefits
Expectant mother looking to take maternity/parental leave who does not have enough hours for EI due to the COVID-19 pandemic
- Inez normally works 30 hours per week in Fredericton, NB.
- She is expecting a second child in October 2020 and planned to take maternity and parental leave and apply for EI benefits.
- Due to the COVID-19 pandemic, Inez has been off work and receiving the CERB. She had only accumulated 450 hours of work, which is below the 600 hours requirement to qualify for maternity and parental benefits once her baby is born.
What could Inez qualify for?
- As a result of the temporary measures, Inez has the minimum 120 hours of work and can qualify for EI maternity and parental benefits.
EI Fishing Benefits
The Government is also implementing temporary measures to support self-employed fish harvesters who rely on EI fishing benefits in the off-season. These measures will allow EI fishing benefits for these workers to be calculated using either their actual fishing earnings for their current claim, or their fishing earnings from their claim for the same season from the previous year, whichever is higher.
Source: Subject to change. Please consult with the Government of Canada website. (Updated August 21, 2020)
