The federal government has introduced several temporary changes to Employment Insurance (EI) that aim to make it easier and faster for Canadians to access support.
While the official text of the regulations has yet to be published at the time of this blog posting, the Federal Government has announced the changes in a recent news bulletin.
These measures are especially helpful for those facing job loss or disruption, and they build on some of the lessons learned during the COVID-19 pandemic. Here’s what you need to know:
Boosted Regional Unemployment Rates Mean Easier Qualification
One of the most impactful changes is a temporary adjustment to how regional unemployment rates are calculated. The federal government is effectively adding one percentage point to the unemployment rate in every EI region across Canada. No region will have a reported rate lower than 7.1%.
Why does this matter? The EI system uses regional unemployment rates to determine:
- How many insurable hours you need to qualify, and
- How many weeks of benefits you’re eligible for.
With this temporary change:
- The hours threshold is lowered, with a maximum of 630 hours now needed to qualify.
- Benefit duration increases, with up to four extra weeks of EI available.
This change is expected to last for three months.
Faster Access to EI After Job Loss
In another significant shift, EI claimants will no longer have to wait for certain separation payments (such as severance, vacation pay, or other lump-sum payments) to be “used up” before their EI can begin.
Previously, these payments were allocated over time, often delaying the start of EI benefits. Now, they won’t hold up a claim, making the transition from employment to EI support smoother and quicker. This measure will be in place for six months.
If this sounds familiar, it’s because a similar rule was introduced temporarily during the pandemic, and we covered that at the time in this blog post.
No More One-Week Waiting Period
Traditionally, most EI claimants had to wait one week without pay before benefits would begin—similar to a deductible. That waiting period has now been waived, meaning claimants can receive EI starting from their first week of unemployment.
This applies to all types of EI claims, including regular, special (such as parental or caregiving), and fishing benefits. This change is also in effect for six months.
What This Means for Workers
These temporary changes are designed to get money into people’s pockets faster and extend support to more individuals, particularly in uncertain economic times. While the measures are time-limited, they may signal a broader conversation about long-term EI reform.
If you’re facing a job loss or considering applying for EI, now may be a good time to revisit your eligibility under these new rules. And if you have questions about your severance or how these changes apply to your situation, we’re here to help. Get in touch with our team today.
