Question Period Note: EI Sickness Extension Eligibility – New Claims Only

About

Reference number:
EWDDI_June2023_018
Date received:
May 29, 2023
Organization:
Employment and Social Development Canada
Name of Minister:
Qualtrough, Carla (Hon.)
Title of Minister:
Minister of Employment, Workforce Development and Disability Inclusion

Issue/Question:

When the EI sickness benefit was extended from 15 to 26 weeks on December 18, 2022, the additional weeks of benefits were only made available to new benefit claims, meaning that claimants who were already receiving sickness benefits, or had an open claim at this time, were not eligible for the additional weeks of sickness benefits.

Suggested Response:

A permanent extension to the number of weeks of EI sickness benefits from 15 weeks to 26 weeks has been implemented to better support Canadians who need to step away from work because they are facing injury or illness.

Workers with new EI claims established on or after December 18, 2022, are eligible to receive up to 26 weeks of sickness benefits.

When changes are made to the EI program, they typically apply to new claims on a forward-looking basis to limit negative impacts for claimants, such as overpayments.

The income support provided by the EI sickness benefit complements a range of other federal and provincial supports available for longer-term illness and disability in Canada, including those offered through employer-sponsored group insurance plans.

Background:

EI Sickness Benefit

EI sickness benefits support workers (including self-employed workers who register for the program) by providing income replacement to eligible claimants who are unable to work due to illness, injury or quarantine, but who would be available to work if it were not for their medical condition.

EI sickness benefits are paid at 55% of the applicant’s average weekly insurable earnings up to the maximum entitlement amount. The amount for 2023 is $650 per week.

To qualify for EI special benefits, including sickness benefits, insured claimants require 600 insurable hours in the 52-week period preceding their claim. Once all 26 weeks have been used, claimants must work another 600 hours to qualify for more sickness benefits.

In 2021-2022, the EI Sickness Benefit provided $2.46 billion in support to 462,460 claimants. On average, sickness benefits claimants collected 9.1 weeks of benefits. However, 35.3% used the full 15 weeks of benefits available to them

Extension to EI Sickness

As announced in Budget 2021, the Government permanently extended EI sickness benefits from 15 weeks to 26 weeks beginning December 18, 2022, through an Order In Council.

Corresponding changes were also made to the Canada Labour Code.

Working While on Claim

As of August 12, 2018, the Government extended the Working While on Claim provisions to the EI sickness benefit, which provides greater flexibility to workers experiencing an illness to keep more of their EI benefits if they choose to gradually return to work. Working while on claim rules allow sickness benefit claimants to earn money while receiving benefits and keep 50 cents of their benefits for every dollar earned, up to 90% of their previous weekly earnings.

Public Environment

Many stakeholder groups representing cancer patients and people with disabilities, such as Multiple Sclerosis (MS), have expressed support for increasing the benefit duration period from 15 to 26 weeks.

Members of Parliament and Senators examined the Budget Implementation Act, 2021, No. 1, which received Royal Assent on June 29, 2021. As part of the legislative process, members of parliament, representing the Conservative (CPC), New Democratic Party (NDP) and Bloc Quebecois (BQ) parties, urged the Minister of Employment, Workforce Development and Disability Inclusion to extend the benefit period from 15 weeks to 50 or 52 weeks.

Similar Private Member’s Bills have been introduced in the past, the most recent by Jacques Gourde (CPC) to extend the EI sickness benefit 52 weeks. On March 29, 2023, the order for third reading of Bill C-215 was discharged and dropped from the Order Paper, in lieu of the fact the Bill involving the expenditure of public funds was not accompanied by a Royal Recommendation.

Additional Information:

None