Easy Guide: Apply for Employment Insurance (EI) 2021 | Regular/Sickness Benefits

Table of Contents

1. Introduction to Employment Insurance (EI)
2. Eligibility for EI
   1. Check Eligibility for EI
   2. Canada Recovery Benefit (CRB)
3. Understanding Employment Insurance
4. Regular Benefits vs Sickness Benefits
   1. Regular Benefits
   2. Sickness Benefits
5. Requirements for Employment Insurance
   1. Insurable Employment
   2. Hours of Work
   3. Unemployment Rate
6. Changes to EI due to the Pandemic in 2020
   1. Uniform Unemployment Rate
   2. One-Time Credit for Insurable Hours
   3. Increased Benefit Amount
   4. Extended Time Frame for SERB Recipients
7. Step-by-Step EI Application Guide

Understanding Employment Insurance (EI)

🔍 Introduction to Employment Insurance (EI)

Employment Insurance (EI) is a program in Canada that provides temporary financial support to individuals who have stopped working. Whether you have lost your job, are unable to work due to sickness, or are on maternity leave or caregiving duties, EI offers a safety net to help you during these periods of unemployment. In this article, we will guide you through the process of applying for EI and provide all the information you need to know about eligibility, benefits, and recent changes to the program.

🔍 Eligibility for EI

1️⃣ Check Eligibility for EI

Before applying for EI, it is crucial to determine if you are eligible for the program. If you have been affected by the ongoing pandemic, you should first check if you qualify for EI. If you meet the eligibility criteria, you can proceed with your EI application. However, if you are not eligible for EI, you can explore the option of applying for the Canada Recovery Benefit (CRB), which is an alternative financial assistance program.

2️⃣ Canada Recovery Benefit (CRB)

Those who are not eligible for EI may qualify for the Canada Recovery Benefit (CRB). It is essential to understand that you cannot receive both EI and CRB simultaneously. Therefore, it is crucial to ensure you meet the requirements for either EI or CRB before proceeding with your application.

🔍 Understanding Employment Insurance

Employment Insurance is designed to provide temporary financial support to individuals who are out of work. When you stop working in Canada, whether due to job loss, illness, or other circumstances, you may be entitled to receive EI benefits. The program offers different benefit types, including regular benefits, sickness benefits, maternity benefits, caregiving benefits, and even benefits for fishermen. This article will focus primarily on regular benefits, but it is important to consider which type of benefit you may be eligible for based on your situation.

🔍 Regular Benefits vs Sickness Benefits

1️⃣ Regular Benefits

Regular benefits are available to individuals who have lost their job through no fault of their own. This could be due to company layoffs, a shortage of work, or the impact of a global pandemic such as the one experienced recently. To qualify for regular benefits, you must be capable, available, and actively seeking work. It is essential to note that you must have been without work and without pay for seven consecutive days within the last 52 weeks to be eligible for regular benefits.

Pros of Regular Benefits:

• Provides financial support during periods of unemployment.
• Helps individuals find new employment opportunities.
• Can be extended in certain circumstances.

Cons of Regular Benefits:

• Limited duration of support.
• Requires active job search efforts.

2️⃣ Sickness Benefits

Sickness benefits, on the other hand, are intended for individuals who are unable to work due to sickness, injury, or quarantine. Unlike regular benefits, sickness benefits focus on providing financial support to individuals who are temporarily unable to work. To qualify for sickness benefits, your weekly income must have been reduced by more than 40 percent. This benefit aims to assist individuals who would otherwise be capable of working but are prevented by illness or injury.

Pros of Sickness Benefits:

• Provides temporary financial support during periods of illness or injury.
• Offers assistance to those unable to work due to quarantine.
• Supports individuals who are recovering from sickness or injury.

Cons of Sickness Benefits:

• Limited duration of support.
• Requires medical documentation to prove eligibility.

🔍 Requirements for Employment Insurance

1️⃣ Insurable Employment

To be eligible for EI benefits, you must have insurable employment. This means that your job must deduct EI premiums from your paycheck. You can check your pay stub to confirm if EI premiums are being deducted.

2️⃣ Hours of Work

Both regular benefits and sickness benefits have specific requirements regarding the number of hours you must have worked. For regular benefits, you need to have between 400 and 700 insurable hours within the last 52 weeks or since the start of your last EI claim. Sickness benefits require a minimum of 600 insurable hours.

3️⃣ Unemployment Rate

The specific number of insurable hours you need to qualify for EI benefits depends on the unemployment rate in your area. This information can be obtained from the government's website by entering your postal code. It is important to consider the unemployment rate when calculating your required insurable hours.

🔍 Changes to EI due to the Pandemic in 2020

The ongoing pandemic has brought about some changes to the Employment Insurance program to better support individuals affected by job loss or reduced income. These changes were introduced on September 27, 2020, and will remain in effect until September 27, 2021.

1️⃣ Uniform Unemployment Rate

To simplify the process, a uniform unemployment rate of 13.1% is now applied across all regions in Canada. This means that regardless of the actual unemployment rate in your area, the 13.1% rate will be used to calculate your EI benefits. However, if you are entitled to a higher EI payment based on your region's unemployment rate, it will be considered upon the submission of your application.

2️⃣ One-Time Credit for Insurable Hours

To accommodate the challenging circumstances caused by the pandemic, a one-time credit of 300 insurable hours has been introduced. This credit reduces the required number of insurable hours for EI eligibility. Instead of needing 420 hours, you will only need 120 insurable hours.

3️⃣ Increased Benefit Amount

Previously, EI benefits were calculated based on various factors, including the unemployment rate and individual circumstances. However, due to the pandemic, the government has simplified the benefit calculation. Regardless of your previous income, you will now receive a flat amount of $500 per week before taxes. If you are eligible for more based on your circumstances, it will be determined during the application process.

4️⃣ Extended Time Frame for SERB Recipients

If you have received the Canada Emergency Response Benefit (CERB) in the past year, which was introduced as a response to the pandemic, the time frame for accumulating insurable hours has been extended. This change aims to make it easier for individuals who received CERB to meet the requirements for EI benefits. The specific details regarding the extended time frame will be provided during the application process.

🔍 Step-by-Step EI Application Guide

To apply for EI, you can follow these steps:

1. Visit the Service Canada website.
2. Determine your eligibility for EI or CRB.
3. Start the application process by providing your personal information and employment history.
4. Confirm your identity and validate the information provided.
5. Provide direct deposit information for receiving benefits.
6. Answer additional questions regarding your education, union membership, and other relevant details.
7. Enter your latest employer information and the reason for separation from your job.
8. Provide details about your pay and the Record of Employment (ROE) from your employer.
9. Confirm if you receive workers' compensation or pension.
10. Review your information and accept the rights and responsibilities associated with applying for EI.
11. Submit your application.

Congratulations! Your EI application has been submitted. You will receive a code in the mail to proceed with the online reporting phase of the application process.

Highlights

• Employment Insurance (EI) provides temporary financial support to individuals who have stopped working in Canada.
• EI offers regular benefits, sickness benefits, maternity benefits, caregiving benefits, and benefits for fishermen.
• Regular benefits are for individuals who have lost their job through no fault of their own, while sickness benefits are for those unable to work due to illness or injury.
• To be eligible for EI, you must have insurable employment, a specific number of working hours, and meet the unemployment rate requirement.
• Changes to EI due to the pandemic include a uniform unemployment rate, a one-time credit for insurable hours, an increased benefit amount, and an extended time frame for SERB recipients.
• The EI application process requires providing personal information, employment history, direct deposit details, and answering several eligibility-related questions.

FAQ

Q: Can I apply for both Employment Insurance (EI) and Canada Recovery Benefit (CRB) at the same time? A: No, you cannot receive both EI and CRB simultaneously. You should check your eligibility for EI first and then consider CRB if you are not eligible for EI.

Q: What are the benefits of regular Employment Insurance? A: Regular benefits provide temporary financial support during periods of unemployment and help individuals find new job opportunities. They can be extended in certain circumstances.

Q: How do I calculate the required insurable hours for EI benefits? A: The required insurable hours depend on the unemployment rate in your area. You can use the government's website to determine the specific number based on your postal code.

Q: What changes have been made to Employment Insurance due to the pandemic? A: Changes include a uniform unemployment rate, a one-time credit for insurable hours, an increased flat benefit amount, and an extended time frame for Canada Emergency Response Benefit (CERB) recipients.

Q: Are there any specific requirements for self-employed individuals applying for EI? A: Self-employed individuals are generally not eligible for EI regular benefits. However, they may be eligible for other forms of support, such as the Canada Recovery Benefit (CRB).