Sabrina
Employment Insurance (EI) sickness benefits are a crucial source of financial support for Canadians who are unable to work due to medical conditions such as illness, injury, or quarantine.
These benefits help maintain financial stability during tough times, ensuring that individuals can focus on recovery without the added stress of financial insecurity.
What Are EI Sickness Benefits?
EI sickness benefits provide temporary financial relief to those who cannot work because of health-related issues.
The benefits cover up to 55% of your average insurable weekly earnings, up to a maximum of $695 per week, for a period of up to 26 weeks.
Understanding the eligibility requirements, how to apply, and the associated tax implications is essential for accessing this support.
Benefit Details at a Glance
| Aspect | Details |
|---|---|
| Benefit Amount | Up to 55% of average insurable weekly earnings, capped at $695/week |
| Duration | Up to 26 weeks of assistance |
| Eligibility | Must meet specific conditions including paid EI premiums, a significant reduction in earnings, and a medical certificate |
| Application Process | Apply online with necessary documents such as Record of Employment (ROE) and a medical certificate |
| Waiting Period | A one-week unpaid waiting period before benefits begin |
| Taxation | EI sickness benefits are taxable income |
| Official Resource | Government of Canada EI Sickness Benefits |
Eligibility for EI Sickness Benefits
To qualify for EI sickness benefits, you must meet the following requirements:
- Paid EI Premiums: You must have contributed to EI premiums through your employment.
- Significant Earnings Reduction: Your regular weekly earnings should be reduced by more than 40% due to illness, injury, or another medical reason.
- Insurable Hours: You must have accumulated at least 600 hours of insurable employment in the 52 weeks before applying or since your last claim.
- Medical Certificate: You need a certificate from a doctor confirming your inability to work and the expected duration of your illness or injury.
Example
Maria, who worked 1,000 hours in the past year, gets a medical certificate from her doctor confirming she requires two months off for surgery. Since she meets all the eligibility criteria, Maria qualifies for the EI sickness benefits.
How to Apply for EI Sickness Benefits
The application process involves the following steps:
- Gather Required Information:
- Social Insurance Number (SIN)
- Banking details for direct deposit
- Names, addresses, and dates of employment for the last 52 weeks
- Reasons for leaving previous jobs
- Complete the Online Application:
Once you stop working due to illness, apply online through the Government of Canada’s EI sickness benefits portal. - Provide the Necessary Documents:
Submit your Record of Employment (ROE) and a medical certificate from your doctor confirming your condition.
Example
John applies for EI sickness benefits immediately after his last working day. He submits his ROE and medical certificate, ensuring he receives his benefits promptly.
How Are EI Sickness Benefits Calculated?
Your benefit amount is based on your average insurable weekly earnings during the qualifying period:
- Identify the Best Weeks:
Determine your highest-earning weeks within the qualifying period. - Calculate Your Average Earnings:
Add up the earnings for your best weeks and divide by the number of weeks. - Apply the Benefit Rate:
Multiply your average weekly earnings by 55%. The benefit will be capped at $695 per week.
Example
If Lisa’s highest 14 weeks of earnings total $14,000, her average weekly earnings would be $1,000. At 55%, her weekly benefit would be $550, which is below the $695 cap, so she would receive $550 per week.
Waiting Period for EI Sickness Benefits
Before receiving your first payment, there is typically a one-week unpaid waiting period. This means that your benefits will begin in the second week of your claim.
Taxation of EI Sickness Benefits
EI sickness benefits are taxable income. Both federal and provincial taxes will be deducted from your payments.
Example
David receives $600 per week in EI sickness benefits. After tax deductions, his net weekly payment is $540.
Reporting Requirements During the Benefit Period
While receiving EI sickness benefits, you must submit a report every two weeks to Service Canada. This ensures your ongoing eligibility and verifies the accuracy of your benefit payments.
Working While Receiving EI Sickness Benefits
If you work while receiving EI sickness benefits, your benefits may be reduced. Service Canada deducts 50% of any earnings you make above the allowable limit, so it’s important to report any work activity while claiming benefits.
EI sickness benefits are a vital source of financial support for Canadians who cannot work due to illness, injury, or other medical conditions.
By understanding the eligibility criteria, application process, and tax implications, you can ensure you receive the assistance you need during a difficult time.
Be sure to apply as soon as possible, meet the necessary reporting requirements, and track your benefit payments to stay on top of your financial needs while recovering.
FAQs
How much money can I get from EI sickness benefits?
EI sickness benefits provide up to 55% of your average insurable weekly earnings, up to a maximum of $695 per week. If your weekly earnings are lower than the cap, you will receive 55% of your actual earnings.
How long do I receive EI sickness benefits?
You can receive EI sickness benefits for up to 26 weeks, provided you remain eligible and continue to meet the necessary conditions, such as ongoing medical certification.
How do I apply for EI sickness benefits?
To apply, gather your Social Insurance Number (SIN), banking information, employment details from the past 52 weeks, and a medical certificate. Complete the online application via the Government of Canada’s portal and submit the required documents.