Employment Insurance (EI) in Canada: What You Need to Know for 2024-2025

Employment Insurance (EI) is designed to provide temporary financial support to Canadians who lose their jobs or can’t work due to specific situations like illness, pregnancy, or caring for family members. Here’s what you need to know about EI for 2024 and 2025.

Who is Eligible for EI?

To qualify for EI, you generally need:

• Regular Benefits: 420 to 700 hours of insurable employment in the past year, depending on your region’s unemployment rate.

• Special Benefits: At least 600 hours of insurable employment in the past year.

Special benefits cover life events such as maternity leave, parental leave, illness, or caregiving responsibilities.

Types of EI Benefits

EI provides two main types of benefits:

Regular EI Benefits

These are for workers who’ve lost their job through no fault of their own, like layoffs. The benefit amount is typically 55% of your average weekly earnings.

Special EI Benefits

These support workers who temporarily can’t work due to specific life events:

• Maternity Benefits: Up to 15 weeks.

• Parental Benefits:

  • Standard: Up to 35 weeks at 55% income (up to 40 weeks if shared).

  • Extended: Up to 61 weeks at 33% income (up to 69 weeks if shared).

• Sickness Benefits: Up to 26 weeks if you’re ill or injured.

• Caregiving Benefits:

  • Family Caregiver (child): Up to 35 weeks.

  • Family Caregiver (adult): Up to 15 weeks.

  • Compassionate Care: Up to 26 weeks for end-of-life care.

EI Contribution Rates for 2024 and 2025

Your EI premiums help fund these benefits. Employees and employers contribute a percentage of insurable earnings:

Employers pay 1.4 times the employee contribution rate.

Key Changes from 2024 to 2025

• Premium Rate Decrease: Slight drop from 1.66% to 1.64% for employees.

• Higher MIE: Increase from $63,200 to $65,700, slightly raising annual contributions for higher earners.

• New Benefits: Additional 15-week benefit introduced for adoptive and surrogate parents.

EI for Self-Employed Workers

Self-employed individuals can voluntarily join EI to access special benefits (maternity, parental, sickness, caregiving). Regular unemployment benefits, however, aren’t available to self-employed individuals. To participate, you must register and pay premiums on your self-employment income.

Working While Receiving EI Benefits

You can work part-time while receiving EI benefits. Each dollar you earn reduces your EI benefits by 50 cents, up to a certain threshold. Earnings beyond this threshold reduce benefits dollar-for-dollar.

EI and Taxes

EI benefits are considered taxable income. You will receive a T4E tax slip to report benefits on your annual income tax return. Taxes are withheld from EI payments, but you might owe additional tax based on your total income for the year.

Frequently Asked Questions (FAQ)

1. Why did my EI deduction go up in 2025?

Although the EI rate slightly decreased, the higher maximum insurable earnings limit means more of your income is subject to contributions, potentially increasing your total annual contribution.

2. Can I get EI if I’m self-employed?

Yes, self-employed individuals can opt into EI to access special benefits only, after paying premiums for at least a year.

3. How long can I receive EI?

Regular EI benefits last from 14 to 45 weeks based on your region and employment history. Special benefits have fixed durations depending on the specific benefit.

4. Can I work while on EI?

Yes, you can work part-time. Your EI benefits will be adjusted based on your earnings.

5. Are EI benefits taxable?

Yes, EI payments are taxable. You’ll need to include them in your income when filing your taxes.

By understanding EI rules and benefits, you can better prepare for unexpected job loss or life events that affect your income.