Quebec, on the other hand, has its own EI premium rates and maximums. The current Federal EI premium rates and maximums for Quebec are:. Unfortunately, if an employee starts at a new company at any time during the year, their maximum annual employee premium is essentially reset.
This means that the new employer also has to deduct EI premiums regardless of what the previous employer has paid, even if the maximum premium amount was hit.
As employees, some of you may notice that your pay cheques are lower in the beginning of the year, this in part is due to EI deductions. Once you hit your maximum total deductions for the year, there will be no more EI taken off of your salary.
The more you make, the less time it will take to pay the total premiums. Once you hit that maximum amount, there will be no more EI deductions for the year. The more employees you have, the more premiums you will need to calculate and remit to the government. You can also check out this payroll deductions online calculator PDOC provided by the Government of Canada, or our hassle-free payroll software that does the calculations automatically.
Like any other payroll deductions, you need to ensure that you file all payroll taxes on time this is very important! Moreover, you should be sure that you have the right employee forms in place, so that you are not making any mistakes when filing.
There are a few different remittance schedules to be aware of, such as new remitter, regular remitter, and quarterly remitter. Check out this post to learn about how and when to remit EI. The Government of Canada receives around , EI applications every month.
Prince Edward Island. Yukon Territory. Wrap-around Delivery and Other Team-based Models. Back x. About Homelessness. Doing Research.
Community Profiles. Manitoba Brandon Thompson Winnipeg. Newfoundland and Labrador St. Northwest Territories Yellowknife. The maximum amount payable is determined by the maximum insurable earnings MIE. The EI family supplement provides additional benefits to low-income families with children. To stay connected to the labour market and earn some additional income, EI claimants can work while they are on claim.
This measure is available to those collecting regular, fishing, maternity, parental, sickness, compassionate care or family caregiver benefits. Claimants can keep 50 cents of their EI benefits for every dollar they earn, up to a maximum of 90 per cent of the weekly insurable earnings used to calculate their EI benefit amount.
EI regular benefits are provided to eligible insured persons who have lost their jobs through no fault of their own for example, due to a shortage of work, seasonal or mass lay-offs and are available for and able to work but can't find a job.
To qualify for regular benefits, individuals must have been without work and without pay for at least seven consecutive days. Claimants must have worked at least the minimum required hours of insurable employment, between and hours, as determined by the regional unemployment rate, in the last week qualifying period or since their last claim, whichever is shorter. The number of insurable hours required to qualify is increased in cases of violations regarding prior EI claims.
Claimants must also be available and actively looking for work in order to maintain eligibility. The maximum number of regular benefit weeks varies from 14 to 45 weeks, depending on the number of insurable hours accumulated in the qualifying period and the regional unemployment rate. In certain circumstances, the maximum duration of benefits can be extended through temporary special measures.
EI provides fishing benefits to qualifying self-employed fishers who are actively seeking work. Unlike regular EI benefits, eligibility for EI fishing benefits is determined by the claimant's insurable fishing earnings accumulated during the qualifying period, not the number of hours worked.
To avoid lay-offs due to a temporary reduction in the normal level of business activity that is beyond the control of the employer, employers and employees can enter into a Work-Sharing agreement with the Canada Employment Insurance Commission Commission through Service Canada to provide EI benefits to eligible workers willing to work a temporarily reduced work week. This enables employers to retain staff and adjust their work activity during temporary work shortages, as well as avoid the expenses of hiring and training new staff once business levels return to normal.
Employees are able to retain their skills and jobs while receiving EI benefits for the days that they do not work. Work-Sharing agreements have a minimum duration of 6 weeks and a maximum of 26 weeks, with a possible extension of up to 12 weeks for a maximum duration of 38 weeks. From time to time, the maximum duration of Work-Sharing agreements may be extended through temporary special measures. In addition, special benefits require a minimum of hours of insurable employment in the week qualifying period.
Special benefits include:. Maternity benefits , for people who are away from work because they are pregnant or have recently given birth. These benefits can be paid for a maximum of 15 weeks. They can start as early as 12 weeks before the expected date of birth, and can end as late as 17 weeks after the actual date of birth. Parental benefits, for a parent to take care of their newborn or newly adopted child.
Parents may share the available weeks of parental benefits. There are two options available:. As no parent can access more than 35 weeks, sharing parental benefits is required to access the additional weeks. As no parent can access more than 61 weeks, sharing parental benefits is required to access the additional weeks. Sickness benefits , for people who are unable to work due to illness, injury or quarantine. Compassionate care benefits , for people who take a temporary leave from work to provide end-of-life care or support for a family member who has a significant risk of death in the next 6 months.
These benefits can be paid for a maximum of 26 weeks, which can be shared among eligible family caregivers. Family Caregiver Benefit for Children , for family members who must be away from work to care for or support a critically ill or injured child. This benefit can be paid for a maximum of 35 weeks, which can be shared among eligible family caregivers.
Family Caregiver Benefit for Adults , for family members who must be away from work to care for or support a critically ill or injured adult. This benefit can be paid for a maximum of 15 weeks, which can be shared among eligible family caregivers. Self-employed Canadians voluntarily enter into an agreement with the Commission through Service Canada to contribute EI premiums and access EI special benefits.
They must be registered for at least one year prior to claiming benefits and their self-employment earnings must meet the minimum self-employment eligibility threshold in the year preceding the claim. Part II of the EI Act includes Employment Benefits and Support Measures EBSM , which are labour market programs and services established to help Canadians find and keep employment and to develop a labour force that meets the current and emerging needs of employers.
The EI program is financed by contributions from employees and employers, via premiums paid on insurable earnings up to the MIE. Employee premiums apply to insurable earnings, up to the MIE. However, the EI program has specific provisions for contributors who are unlikely to qualify for benefits, e. Since 31 January , self-employed individuals may voluntarily opt into the EI program to receive EI special benefits.
Self-employed individuals pay the same EI premium rate as salaried employees but are not required to pay the employer portion of premiums, as they do not have access to EI regular benefits. Employers pay premiums at the rate of 1. Employers bear a higher overall share of program costs based on the principle that they have more control over layoffs. However, in accordance with subsection 69 1 of the EI Act, employers who sponsor a qualified wage-loss plan which reduces the EI special benefits otherwise payable receive a premium reduction if they meet the requirements set out by the Commission.
In such cases, the employer pays premiums at a rate that is lower than 1. In accordance with subsection 66 1 of the EI Act, the Commission shall set the premium rate for each year in order to generate just enough premium revenue to ensure that, at the end of the seven-year period that commences at the beginning of that year, the total of the amounts credited to the EI Operating Account after 31 December is equal to the total of the amounts charged to that Account after that date.
This calculated premium rate is referred to as the 7-year forecast break-even rate. The EI Act includes the following dates by which various responsibilities related to the setting of the EI premium rate must be met. The Minister of Finance shall provide the information prescribed in subsection In accordance with section The Commission shall set the premium rate for the following year and make available to the public the report referred to in section After the premium rate is set and the report and its summary are made available to the public, the Minister of ESD shall cause them to be laid before each House of Parliament on any of the next 10 days during which that House is sitting.
The Governor in Council may set a premium rate that is different from the one set by the Commission, based on the joint recommendation of the Ministers of ESD and Finance, if it is considered to be in the public interest. Based on relevant assumptions and prior to any limit to the annual change in the premium rate, the 7-year forecast break-even rate for is the premium rate that is expected to generate sufficient premium revenue to ensure that at the end of the amounts credited and charged to the EI Operating Account after 31 December are equal.
It is therefore based on the projected balance of the EI Operating Account as of 31 December and the projection over a period of seven years of both the earnings base and EI expenditures. The employer portion of the earnings base for salaried employees is equal to 1. The expected costs of these premium reductions over the next seven years are included in the EI expenditures for purposes of determining the 7-year forecast break-even rate. More information on these premium reductions as well as the methodology used for calculating the applicable reductions for are provided in subsections B.
For purposes of determining the 7-year forecast break-even rate, the earnings base and EI expenditures are projected over a seven-year period using the expected growth rates in the relevant economic and demographic variables applied to the base year, i. The base year for the earnings base is , which is the most recent year for which fully assessed T4 data are available. Data and assumptions provided by the Minister of ESD, including prescribed information as set out in section The 7-year forecast break-even rate is calculated such that the sum of expected revenues from insurable and self-employed covered earnings over the next seven years and the EI Operating Account balance as of 31 December are equal to the expected EI expenditures over the same period.
For this purpose, the expected EI expenditures include the expected amount of premium reductions granted to employers who sponsor a qualified wage-loss plan as well as to employees residing in a province that has established a provincial plan and their employers.
EI Part I benefits, net of benefit repayments that apply in certain situations e. Premium reductions granted to employees residing in a province that has established a provincial plan and to their employers; and. Premium rebate granted to small businesses related to the new EI Training Support Benefit expected to launch in late and later postponed to calendar year The details of the rebate still need to be confirmed through legislation.
Employer premiums paid on behalf of salaried employees over the next seven years prior to premium reductions and rebate;. Employee premiums over the next seven years for earnings included in insured employment of salaried employees, net of refunds that apply in certain situations e.
Employee premiums over the next seven years for self-employed individuals who voluntarily opted into the EI program prior to premium reductions for provincial plans. Depending on the projected cumulative balance in the EI Operating Account as at 31 December , the 7-year forecast break-even rate could either increase or decrease.
For , given that the projected EI Operating Account as of 31 December is projected to be in deficit, the amortization of the projected EI Operating account balance increases the 7-year forecast break-even rate.
The EI expenditures on the left side of the equation are expressed as the sum of the direct program expenditures, the amount of reduction in the employer premiums due to qualified wage-loss plans, the amount of reduction in employee and employer premiums due to provincial plans and the small business premium rebate that will offset costs of the new EI Training Support Benefit proposed in Budget and expected to launch in late The EI revenues on the right side of the equation represent the sum of employer premiums paid on behalf of salaried employees prior to reductions for wage-loss plans, provincial plans and the small business premium rebate , salaried employee premiums net of employee refunds prior to reductions for provincial plans and employee premiums for self—employed prior to reductions for provincial plans.
The employer premiums paid on behalf of salaried employees prior to reductions for wage-loss plans, provincial plans and the small business premium rebate are equal to 1. The salaried employee premiums net of employee refunds prior to reductions for provincial plans are equal to the product of the rate, the TIE and 1 minus the average adjustment over the next 7 years to reflect employee premium refunds, expressed as a percentage of TIE.
The employee premiums for self-employed prior to reductions for provincial plans are calculated by multiplying the rate by the total self-employed earnings over the next 7 years for individuals who opted into the EI program.
A description of the assumptions used in projecting the variables included in the above formulas is provided in Section 4 of the main report, with additional supporting information provided in Appendix D. In accordance with sections 63, 64, 65 and 66 of the Employment Insurance Regulations "EI Regulations" , there are four distinct categories of qualified wage-loss plans, and a separate rate of reduction, expressed as a percentage of insurable earnings, is calculated annually for each category.
These rates of reduction are then converted into reduced employer multipliers for each category and applicable premium rate. The principle in determining the rates of reduction is that the EI program is paying lower sickness benefits due to the presence of qualified wage-loss plans, and that these savings to the EI program should be passed on to the employers who sponsor these plans and their employees.
For administrative simplicity, the full premium reduction is provided to the employer who is then responsible for returning the employees' portion of the reduction to them. As discussed in the previous subsection, the projection over seven years of the reduction in employer premiums due to qualified wage-loss plans is taken into account in the determination of the 7-year forecast break-even rate.
For this purpose, it is viewed as a cost to the EI program and included in the numerator of the 7-year forecast break-even rate calculation.
However, the cost to the EI program of granting premium reductions to employers with qualified wage-loss plans is offset by the savings to the EI program generated by lower EI sickness benefits due to the existence of qualified wage-loss plans.
The remainder of this subsection provides summarized information on this. The methodology to calculate the rates of reduction applicable for is prescribed in section 62 of the EI Regulations. Pursuant to this section, the employer's premium rate shall be reduced by the percentage by which the first payer cost ratio in respect of all insured persons exceeds the experience cost ratio in respect of insured persons covered by a qualified wage-loss plan of that employer's category.
The formula used in determining the rate of reduction of each category is provided below:. The FPC ratio, which is identical for all insured persons and categories, represents the average estimated job-attached Footnote 5 EI sickness benefits that would have been paid if benefits payable under a group sickness or disability wage-loss indemnity plan or paid sick leave plan were disregarded for purposes of determining benefits otherwise payable to persons under the EI Act.
It is expressed as a percentage of average insurable earnings for all insured persons. The FPC for each year is determined by multiplying the hypothetical number of first payer job-attached EI sickness benefit weeks by the average weekly sickness benefits that would apply in such circumstance. For the purposes of calculating the rates of reduction, the FPC ratio is equal to the average of the FPC for the years to , divided by the average insurable earnings of all insured persons for the years to The formula used in determining the FPC ratio is provided below:.
The first payer cost ratio is calculated by dividing the sum of the first payer cost for years , and by the sum of the total insurable earnings for years , and for all salaried employees, prior to adjustments for employee premium refunds. It is expressed as a percentage of average insurable earnings for the insured persons in that category. The EC for each year and category, as well as the allocation of insurable earnings amongst categories are based on an analysis of administrative data provided by Service Canada and ESDC.
Similarly to the calculation of the FPC ratio, for the purposes of calculating the rates of reduction, the EC ratio of each category is based on the years to The formula used in determining the EC ratio of each category is provided below:.
The experience cost ratio for a given category of wage-loss plan 1 to 4 is equal to the sum of the experience cost of that category for years , and , divided by the sum of the total insurable earnings for years , and for salaried employees of that given category, prior to adjustments for employee premium refunds.
The resulting uniform FPC ratio applicable to all categories and the EC ratio of each category are used to determine the rates of reduction per category. The estimated insurable earnings per category are then used to estimate the employer premium reduction due to qualified wage-loss plans. The estimated employer premium reductions due to qualified wage-loss plans for years to reflect temporary measures and the enhancement of sickness benefits from 15 to 26 weeks starting in the summer of Additional supporting information on the calculation of the employer premium reduction due to qualified wage-loss plans and of each separate component is provided in Appendix E.
In accordance with subsection 69 2 of the EI Act and related regulations, premiums paid by employees and their employers can be reduced when employees are covered under a plan established under provincial law which reduces EI maternity and parental MP benefits otherwise payable, provided that an agreement has been entered into between the Government of Canada and the province to establish a system for reducing premiums paid by residents of that province and their employers.
As discussed in the previous subsection, the projection over seven years of the reduction in premiums due to the presence of provincial plans is taken into account in the determination of the 7-year forecast break-even rate.
However, the cost to the EI program of granting these premium reductions is offset by the savings to the EI program generated by lower EI MP benefits due to the existence of provincial plans. In addition to determining the 7-year forecast break-even rate, one of the purposes of this report is to determine the reduction in premiums due to provincial plans that will apply for The remainder of this subsection provides more information on this.
Accordingly, the formula for the QPIP reduction is as follows:. The earnings base for out-of-Quebec residents is developed as follows: 1. For subsequent years, the MIE before rounding is equal to the previous year's MIE before rounding, multiplied by the average of the AWE for each month for the twelve month period ending on April 30 of the previous year divided by the average of the AWE for each month for the twelve month period ending on April 30 in the year prior to the previous year.
The MIE for years prior to are not revised and are based on the legislation that applied at the time they were determined. However, the MIE reflects retroactive adjustments to the calculation in accordance with current legislation. To qualify for EI special benefits, self-employed individuals who opted in the EI program need to earn at least the MSEE during the calendar year before the year they submit a claim.
For claims filed in , in accordance with subsection It is adjusted annually on a compound basis by the same ratio used for the indexation of the MIE see previous section , rounded down to the nearest dollar. However, special temporary measures were put in place by the Government to decrease the amount of self-employed earnings required to make a claim. This appendix describes the data, methodology and assumptions that underlie the projections of the earnings base and expenditures included in this report.
Although the assumptions have been developed using the most up-to-date available information, the resulting estimates should be interpreted with caution. These estimates are projections, and eventual differences between future experience and these projections will be analyzed and taken into account in subsequent reports.
Under subsection Includes administration costs for the new EI Training Support Benefit proposed in Budget and expected to launch in Additional information with regards to the pilot projects, special measures and new permanent changes shown in Table 24 can be found below.
In August , the Government of Canada announced, that as part of a Budget commitment, a new pilot project to provide up to five additional weeks of EI regular benefits to eligible seasonal claimants in 13 targeted EI economic regions would be implemented. The additional five weeks of benefits were available for claims established between 5 August and 30 May Budget further extended the eligibility period to 29 October Budget extended the maximum duration of Work-Sharing agreements that began or ended between 1 April and 31 March , from 38 weeks to 76 weeks.
The Softwood Lumber Action Plan announced in June extended the maximum duration of Work-Sharing agreements beginning between 30 July and 28 March to support workers affected by the downturn in the Forestry sector. In June , the Government of Canada also announced the extension to the maximum duration of Work-Sharing agreements from 19 August to 27 March to support workers who may be affected by the U. These changes included extending the duration of Work-Sharing agreements, waiving the mandatory cooling off period, expanding eligibility criteria and streamlining the application process.
Budget announced an extension to these temporary measures until 24 September Due to the COVID pandemic, several interim orders were enacted over a short period of time with the aim of facilitating access to EI. Self-employed workers who have opted in to the EI program to access special benefits also benefited from a transition measure. Budget announced a new EI Training Support Benefit to help workers cover their living expenses when they require time off work to pursue training.
The benefit will provide eligible claimants with up to four weeks of income support in a four-year period at 55 per cent of their average weekly insurable earnings. It was originally expected to launch in late , but ESDC has indicated that it would be delayed to Section 4 of the report presents an overview of the assumptions used in determining the earnings base.
The following subsections provide additional information and data in support of the development of these assumptions. In order to calculate the earnings base, an assumption is required for the number of earners, as well as the split of these earners between those who have earnings below and above the maximum insurable earnings MIE.
The annual statistic on the number of employees provided by the Minister of Finance represents an average of the number of individuals who work for a public or private sector employer in a month. This is mainly due to the fact that the number of earners includes all individuals who had earnings at any time during the year, whereas the number of employees only indicates a monthly average.
A historical comparison of the number of employees and the number of earners is presented in Table The preliminary number of earners for is set such that the resulting insurable earnings are in line with the expected assessed premiums for , which are derived from the year-to-date assessed premiums and the increase in average employment income provided by the Minister of Finance. The projected number of earners is obtained by a regression based on a correlated historical relationship from to between the number of earners and the number of employees.
Table 27 shows projected number of employees as provided by the Minister of Finance as well as the projected number of earners for the years to As shown in Table 28, based on information with regards to the historical number of earners across income ranges, the distribution of earners by level of average employment income is fairly stable from year to year. The distribution of the number of earners by level of average employment income is used to determine the proportion of earners with employment income below and above the MIE for years to Table 29 shows the resulting split of the number of earners between those with employment income below the MIE and those with employment income above the MIE.
Actual data is also shown for years to The projected increase in average employment income, provided by the Minister of Finance, combined with the increase in the projected number of earners, are used to determine the total employment income for years to Table 30 shows the derivation of the projected total employment income for years to , as well as actual data provided by CRA for years to As shown in Table 31, the historical distribution of total employment income as a percentage of average employment income is relatively stable from year to year.
The distribution of total employment income as a percentage of average employment income is used to determine the proportion of employment income that relates to earners with employment income below and above the MIE for years to Table 32 shows the total employment income split between earners with employment income below the MIE and earners with employment income above the MIE for years to Total insurable earnings for salaried employees are equal to total employment income, up to the annual MIE, earned by a person employed in insured employment.
Historical information regarding total insurable earnings is derived from aggregate assessed EI premiums gathered from T4 slips of all salaried employees, and is provided by CRA. Insurable earnings can be calculated by dividing gross EI premium revenues by 2. Gross EI premium revenues are derived by adding the following components to the net EI assessed premiums:. Gross EI premium revenues represent employee EI premiums deducted at source and the corresponding employer premium before adjusting for qualified wage-loss plans, and reflect the employee's province of work.
The derivation of insurable earnings for years to from the CRA statement of premium revenue is shown in Table Net premiums assessed for to shown in the table are prior to the reduction in premiums due to the small business job credit. For employees with multiple employments in a year, the information is based on the combined total EI premiums. This means that although insurable earnings of each employment are capped at the MIE, the combined total insurable earnings can exceed the MIE.
The adjustment to insurable earnings and the earnings base to reflect multiple employments is captured in the employee premium refund section. The distributions of total number of earners and total employment income as a percentage of average employment income are used to calculate insurable earnings for years to Total employment income capped at the MIE is derived from these distributions.
The resulting capped employment income is adjusted for consistency with total insurable earnings, which takes into account multiple employments as well as excluded employments. The adjustment varies based on expected changes in the unemployment rate; for years to , the adjustment is expected to be It is expected to reach its ultimate value of Table 34 shows details of the projected total insurable earnings calculations for years to , as well as actual data for years to The resulting insurable earnings for reflect the year-to-date assessed premiums and related total expected assessed premiums for the year.
The information regarding historical insurable earnings provided by CRA T4 basis is based on the province of employment. Premiums are remitted by employers and employees based on province of employment, i. The information regarding historical insurable earnings provided by CRA is also on a T4 basis, and is therefore based on the province of employment. This is highlighted in Table Adjustments to these proportions are required to reflect the province of residence.
These adjustment payments are based on information included in individual tax returns and reflect the province of residence as of 31 December. Table 36 shows the detailed adjustment payments between both parties for calendar years to The adjustment payments for calendar year are preliminary. Under these rules, the employer adjustment payment for each T4 slip of a given employee is generally equal to that employee's insurable earnings times the QPIP reduction times the employer's multiplier. The resulting net effect is that, from the split based on province of employment, an average net transfer of 0.
This is outlined in Table It is assumed that the net transfer of insurable earnings on a T4 basis to reflect actual province of residence for years to will be equal to the average transfer for years to , that is 0.
The resulting insurable earnings on a province of residence basis are outlined in Table In general, salaried employees contribute EI premiums on their total insurable earnings in a given tax year up to the annual MIE limit. The data from T4 slips that are used for projection purposes include insurable earnings for which premiums may later be refunded.
Therefore, an adjustment must be made to reduce the earnings base. In addition, since the employer does not receive a refund, only the employee's portion of the total earnings base is adjusted.
However, the total insurable earnings should not be adjusted to reflect this refund. The insurable earnings base should be adjusted for the refund related to the EI premium overpayment rather than the EI premium overpayment minus the QPIP premium payable.
Given that the latter is not as common, the adjusted premium refunds will be lower than the refunds provided by CRA. The adjusted premium refunds are estimated such that the net assessed premiums shown in Table 33 remain unchanged after taking into account the split of insurable earnings based on province of residence.
In the reconciliation of the net assessed premiums using the province of residence Table 39 , the net adjustment payments QPIP shown in Table 33 are re-allocated between two items: the gross premium revenues and the premium refunds.
The portion of net adjustment payments that is re-allocated to gross premium revenues is calculated by taking the difference between gross premiums calculated using the weighted-average premium rate on a province of residence basis and gross premiums calculated using the weighted-average premium rate on a province of employment basis.
The portion of net adjustment payments that has not been allocated to the change in gross premium revenues to reflect the province of residence is allocated to premium refunds. Table 39 shows the reconciliation of net premiums and the inherent calculation of adjusted premium refunds for years to The adjusted premium refunds divided by the average premium rate are used to estimate the total insurable earnings subject to a subsequent employee refund.
The calculations are based on historical data provided by CRA. Table 40 shows that the total insurable earnings subject to a subsequent employee refund as a percentage of total insurable earnings averages 2.
It is assumed to remain constant at 2. Pursuant to the Fairness for the Self-Employed Act , starting 31 January , self-employed persons can enter into a voluntary agreement with the Canada Employment Insurance Commission Commission through Service Canada to participate in the EI program, contribute EI premiums at the employee rate and have access to special benefits.
As such, the earnings base used in calculating the 7-year forecast break-even rate must take into account the covered earnings of self-employed individuals who opt into the EI program. Participants in the self-employed EI program contribute premiums on their covered earnings, i. The expected increase in self-employed covered earnings reflects the expected increase in the number of participants, and the expected increase in average earnings of self-employed individuals.
ESDC tracks the number of weekly self-employed enrolments by province for the EI program and was able to provide enrolment data for each week up to June The enrolment data also includes adjustments for individuals who have opted out of the program in each week. The assumption to complete year is based on the last 3-year average of weekly enrolments for the last six months of each year. Between and , the number of participants is expected to grow based on the average weekly enrolments over the last three years preceding the pandemic Using cumulative enrolments up to June and projected enrolments, Table 41 shows the historical and projected number of self-employed participants from to As such, it is assumed that the average earnings of self-employed individuals who have opted into the EI program will increase at the same pace as the average earnings of salaried employees from to The projected increase in average employment earnings, combined with the increase in the number of self-employed participants are used to determine the self-employed covered earnings for years to It is important to note that regardless of the timing of enrolment during the year, premiums are paid on total covered earnings in that year.
EI benefits also include temporary spending initiatives, such as pilot projects or special measures announced by the Government of Canada. Work-Sharing benefits, for workers willing to work a temporarily reduced work week to avoid lay-offs;.
Special benefits, for those who are sick sickness benefits , pregnant or caring for a newborn or adopted child maternity and parental benefits , for those caring for a seriously ill family member at end-of-life compassionate care benefits , or for those providing care or support to a critically ill or injured family member Family Caregiver benefits ; and. To project EI expenditures, in addition to demographic and economic forecasts, a number of assumptions are required, namely average weekly benefits, number of potential claimants and recipiency rate.
Those three assumptions are discussed below, and formulas for the projection of regular, fishing, Work-Sharing and special benefits are explained. Details on benefit repayments, Part II benefits, administration costs, bad debt expenses, penalties and interest on overdue accounts receivable are also included in this section. The average weekly benefits AWB are equal to benefit payments divided by the number of benefit weeks paid for Part I benefits. The number of best weeks taken into account is determined by the regional unemployment rate and varies between 14 and 22 insurable earnings weeks.
The maximum amount payable is determined by the MIE. The AWB are determined by the sum of the change in the MIE and in the average weekly earnings, weighted by the proportion of benefit weeks for claimants with insurable earnings above and below the annual MIE and by the prior year AWB for claimants with insurable earnings above and below the annual MIE.
The percentage of benefit weeks for claimants with insurable earnings above the annual MIE is based on an analysis of administrative data provided by ESDC. The proportion of benefit weeks for claimants with insurable earnings above the MIE increased in and following the introduction of the variable best weeks, that is, a change in the benefit rate calculation.
A further increase was observed in and is attributable in part to the temporary extension of EI regular benefits in regions affected by commodities downturn since some regions with higher earnings than the average normal EI claimants were selected. The proportion of benefit weeks for claimants with earnings above the MIE decreased to
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