How to Receive Employment Insurance (EI) Benefits If You’re Laid Off in Canada

If you find yourself laid off in Canada, you may be entitled to financial assistance through the federal government’s Employment Insurance (EI) program.

If your job loss is through no fault of your own, such as due to a layoff or company downsizing, EI regular benefits can provide you with temporary income support while you search for a new position. In 2024, eligible individuals can receive up to $668 per week.

What This Article Covers:

Eligibility for EI benefits on a work permit in Canada
Requirements to qualify for EI regular benefits
The amount of EI benefits you could receive
The process of claiming EI benefits
When to expect your EI benefits
How part-time work affects your EI benefits
Setting up a My Service Canada Account (MSCA)

Understanding Employment Insurance (EI)

In Canada, Employment Insurance (EI) helps replace lost income for workers who are temporarily unemployed. Regular EI benefits are available for those who have lost their job through no fault of their own, such as layoffs, a shortage of work, or the closure of the employer’s business.

Eligibility for Employment Insurance as a Temporary Foreign Worker

You do not have to be a Canadian citizen or permanent resident to be eligible for EI. Temporary foreign workers can also apply for regular EI benefits if they meet specific criteria, including holding a valid work permit.

Open Work Permit: If you have an open work permit, you are eligible for EI benefits as long as you meet the required conditions.
Closed Work Permit: If you hold a closed work permit (employer-specific), you can still apply for EI, but your claim may be refused due to your work status being tied to a specific employer. However, there are instances where individuals with closed work permits have successfully received EI benefits.

Canadian workers abroad may also be eligible for EI, provided their employment isn’t covered by another country’s insurance.

What Are the Eligibility Requirements for EI?

To qualify for EI regular benefits, you must meet the following criteria:

Be employed in “insurable employment” (your employer deducts EI premiums from your wages)
Have worked enough insurable hours during a qualifying period (usually between 420 and 700 hours depending on your region’s unemployment rate)
Have lost your job through no fault of your own (e.g., layoffs, company closures)
Have been without work and earnings for at least seven consecutive days within the past 52 weeks
Be available and willing to work every day
Be in Canada, in most cases
Be actively seeking employment

If your job ended voluntarily or you were dismissed for misconduct, you will not qualify for EI. Similarly, if you received severance pay or pay in lieu of notice, you cannot claim EI benefits until the severance period ends.

How Much Will I Receive from EI?

The amount you can receive from EI depends on your previous earnings and the unemployment rate in your region. Typically, EI benefits are calculated at 55% of your average insurable weekly earnings, up to a maximum of $668 per week in 2024.

The maximum yearly insurable earnings are $63,200, meaning that the maximum weekly benefit is capped at $668.

Note: EI benefits are taxable. Service Canada will withhold a portion of each payment for taxes, and you’ll owe income taxes at your marginal rate on the benefits you receive.

How Long Can I Receive EI?

The duration of your EI benefits depends on two factors:

The unemployment rate in your region when you apply
The number of insurable hours you’ve worked in the past 52 weeks (or since your last EI claim)

You could receive benefits for anywhere between 14 to 45 weeks based on these factors.

What to Do If You Get Laid Off

Step 1: Apply for EI Immediately

As soon as you lose your job, apply for EI online. The application takes about an hour to complete and requires the following information:

Social Insurance Number (SIN)
Bank account details
Employment details
Mailing and residential address

If you don’t finish the application within three days, the information you’ve entered will be deleted, and you will need to start again.

Step 2: Provide Your Records of Employment (ROEs)

To process your EI claim, Service Canada requires your Records of Employment (ROEs). Your employer must issue these within five calendar days of your last pay period. They may send the ROE directly to Service Canada, or you might need to submit it yourself.

Service Canada recommends applying for EI immediately, even if you haven’t received your ROE yet, to avoid delays in payment.

Step 3: Respond to Any Requests for More Information

If Service Canada needs additional information, they may contact you via email or phone. Note that they never ask for personal details by email, so be cautious if you receive suspicious emails.

Step 4: Wait for the Decision

Service Canada will typically make a decision within 28 days after you apply for EI. You can track your application status by signing into your My Service Canada Account (MSCA). Make sure your contact and banking details are up-to-date.

Step 5: Submit Bi-weekly Reports

If your claim is approved, you must submit online reports to Service Canada every two weeks. You’ll receive a four-digit code to complete these reports. If you find part-time work or earn income while receiving EI, you must report this in your bi-weekly reports.

When Will EI Payments Be Deposited?

There’s a one-week waiting period before you become eligible for benefits. For example, if you lose your job on the first day of the month, you’ll be paid for the next four weeks, with the one-week waiting period excluded.

EI payments are usually deposited after you submit your bi-weekly report, and it may take 2-3 business days to show in your account.

What If I Take Part-Time Work While on EI?

You may still be eligible for EI if you take part-time or contract work. However, any income you earn will reduce your EI benefits by 50 cents for each dollar you make, up to a maximum of 90% of your weekly insurable earnings. Earnings above this threshold will be deducted dollar for dollar.

Failure to report your earnings will result in overpayment, and you’ll be required to repay the excess amount.

Setting Up Your My Service Canada Account (MSCA)

The MSCA is an online portal where you can access government services, including EI benefits. To create an MSCA account, visit the Service Canada website and choose your preferred sign-in method, such as GCKey, online banking credentials, or provincial digital ID (for residents of certain provinces).

How to Set Up Direct Deposit for EI Payments

To receive your EI payments by direct deposit, you can complete the direct deposit form available on the Service Canada website and mail it in, or you can visit a Service Canada office to set it up. You’ll need to provide your bank account number and transit details, which can be found on your cheques or through your online banking portal.

By following these steps and understanding the eligibility requirements, you can smoothly navigate the process of applying for and receiving Employment Insurance benefits in Canada.