The federal Employment Insurance (EI) program as outlined in the Unemployment Insurance Act (1971) pay benefits to employees who are laid off due to a work shortage, or who are unable to work due to sickness, a non-occupational accident, pregnancy, parental leave, adoption of a child or quarantine.
The EI program is funded by a payroll tax on employees and employers. The employee pays 1.88% on the first $47,400 of earnings and the employer pays 1.4 times that amount.
Employers who provide an approved wage loss replacement plan receive a modest rate reduction (15.7%) that they must share with employees.
The federal government pays the cost of special benefits for fishermen and the cost of training and job creation programs.
Employment Insurance (EI) provides Sickness Benefits to individuals who:
EI benefits are paid for a maximum of 15 weeks after a 2 week waiting period.
The EI benefit amount is 55% of average insurable weekly earnings, up to a maximum amount which is updated annually. The maximum benefit amount during 2013 is $501 per week. In addition, a Family Supplement is provided to low income claimants.