Our Guide To Employment Insurance For Newcomers To Canada

But the nuances of employment insurance can be confusing. The eligibility requirements aren’t always clear, and it can be frustrating to see the Employment Insurance (EI) being deducted from your paycheck if you don’t plan to use it. We’ve created this guide to help you understand EI in Canada, and why it is so important. 

Key Takeaways

• Employment insurance in Canada provides temporary financial assistance to individuals who lose their jobs or face specific life events, such as illness or parenthood.
• Newcomers are eligible for EI if they meet certain criteria, such as working a minimum number of insurable hours and paying into the system through payroll deductions.
• Contributions to EI are automatic, and the amount paid is based on your earnings.
• EI does not impact spousal sponsorship obligations, and receiving EI benefits does not count as social assistance, meaning there is no requirement to repay these benefits under sponsorship agreements.

What Is Employment Insurance in Canada?

Employment Insurance (EI) is a program in Canada designed to provide temporary financial support to individuals who lose their job through no fault of their own or need assistance due to significant life changes. EI offers a safety net for workers during challenging and/or transitional times.

The program covers a variety of situations, including:

• Job loss: If you are laid off or let go through no fault of your own.
• Maternity and parental leave: For those welcoming a new child into the family, including adoptive parents.
• Sickness: If you are temporarily unable to work due to illness or injury.
• Caregiving: If you need to care for a critically ill family member.

Note: Employment Insurance is not ordinarily available if you leave your job voluntarily. 

The program’s goal is to help Canadian residents maintain financial stability while they seek new employment or manage significant personal circumstances. As a newcomer, understanding the role of EI can provide peace of mind, knowing that support is available if you meet the necessary criteria.

How Much Is An Employment Insurance Payment For Newcomers?  

The amount you receive from EI is typically 55% of your average insurable weekly earnings, up to a maximum of $650 per week.

In other words, your payment is calculated based on your salary over the previous 26 weeks (before you applied for EI). The payments are made every two weeks and depend on your previous earnings, up to a certain limit.

Example Employment Insurance Payments

• For a salary of $30,000: Your EI benefit would be $317 per week.
• For a salary of $50,000: Your EI benefit would be $529 per week.
• For a salary of $70,000: Since EI payments max out at $650 per week, this is the highest amount you would receive, regardless of higher earnings.

As you can see, even if your annual salary exceeds $61,500, you will not receive more than $650 per week in EI payments. This cap ensures that higher earners contribute to the program but don’t receive disproportionately higher benefits.

Are Newcomers Eligible For Employment Insurance Payments in Canada? 

Yes, as a newcomer to Canada you may be eligible for EI if you meet the eligibility conditions. Even though you may be new to the Canadian workforce, you can still access this support if you’ve worked a certain number of insurable hours and paid into the EI system.

To qualify for EI, you must:

1. Work in an insurable job: Most employment in Canada is considered insurable, which means both you and your employer contribute to EI through payroll deductions. It includes commission roles, but self-employment situations have their own rules. 
2. Accumulate sufficient insurable hours: The number of insurable hours you need depends on your location and the unemployment rate in your area. Generally, you need between 420 to 700 hours of insurable work in the previous 52 weeks or since your last claim.
3. Apply for benefits: You must submit an application to Service Canada to be considered for EI. This includes providing details of your employment and reason for separation from your job.

Newcomers often wonder if they can access EI after arriving in Canada. The answer is yes—if you start working, accumulate enough insurable hours, and lose your job or face qualifying circumstances, you may be eligible for Employment Insurance.

How Much Do Newcomers Pay For Employment Insurance? 

In Canada, employees and employers both contribute to the EI program through payroll deductions. The contributions are automatically deducted from your paycheck by your employer and are based on a percentage of your earnings up to an annual maximum.

The maximum insurable earnings amount and the percentage of your earnings that you (and your employer) pay changes each year. 

Here’s a breakdown of how much you’ll contribute in 2025:

• Employee contribution rate: $1.64 per $100 up to a maximum of $1,077.48. 
• Employer contributions: Your employer also contributes to EI at a rate of 1.4 times the employee’s contribution. While this is not deducted from your paycheck, it’s important to know your employer also invests in the program on your behalf.

Once you’ve paid into the system and met the required number of insurable hours, you can access EI benefits if you lose your job or face a qualifying life event. 

It’s important to note that these amounts are adjusted annually, so contributions and benefit caps can change from year to year.

Employment Insurance and Family Sponsorship in Canada

For those who came to Canada through spousal sponsorship, it’s essential to understand how EI interacts with your sponsorship obligations. If you’re sponsoring your spouse or dependent child, you’ve likely signed an undertaking to provide financial support for three years for a spouse or dependent child over 22, and up to ten years for children under 22.

This financial undertaking means that the sponsoring person promises to support their spouse or dependent children so they do not rely on social assistance programs. Social assistance is typically defined as government support that provides essential needs like food, shelter, clothing, and healthcare not covered by public insurance.

But what happens if your spouse or dependent child becomes eligible for Employment Insurance? Will you, as the sponsor, need to repay any EI benefits they receive? The answer is no.

Here’s why:

• EI is not social assistance: Employment Insurance is a program that both employees and employers contribute to, so it’s considered a form of insurance—not welfare or social assistance. Your spouse or dependent child receiving EI does not violate the sponsorship agreement, nor does it create a repayment obligation.
• No repayment needed: If your spouse receives EI because they lost their job or are on parental leave, they will not need to pay it back. You, as the sponsor, are also not responsible for reimbursing the government for these payments.

The only time you’d need to worry about repaying the government is if your sponsored family member claims social assistance. What constitutes social assistance can vary by province or territory, but it generally covers basic needs like food, shelter, clothing, utilities, and non-publicly covered healthcare. Receiving this type of support would create a debt to the government, and the sponsor would be required to repay it.

In contrast, Employment Insurance is something your spouse or family member has contributed to through their work, so it is not subject to repayment under sponsorship rules.

Can Newcomers Opt Out of Employment Insurance Payments?

You might have other financial goals, and getting that extra $1,000 or so in your bank account each year might seem like an attractive offer. But, no, you cannot opt out of Employment Insurance (EI) in Canada. 

Both employees and employers are required by law to contribute to the EI program through payroll deductions. These contributions are automatically deducted from your paycheck if you are working in an insurable job, and your employer is responsible for making these payments to the government.

Here are a few key points about EI contributions:

• Mandatory for most employees: Nearly all workers in Canada are required to contribute to EI, regardless of whether they believe they will use the benefits.
• Special cases: There are a few exceptions. For example, self-employed individuals are not automatically covered by EI. However, they can choose to opt into a special EI program that provides certain benefits, such as parental or caregiving benefits, but they won’t receive regular unemployment benefits.
• Non-insurable employment: Some jobs might be classified as non-insurable, such as jobs held by certain family members in a family business or work done outside Canada, which could make EI contributions unnecessary for those specific situations.

Summary: EI in Canada

As long as you or your family members meet the criteria, EI can help bridge the gap during challenging times. And since it’s not considered social assistance, it won’t impact your sponsorship obligations, giving you the reassurance that your family is supported while you settle into life in Canada.

Navigating the Canadian system can feel overwhelming, but understanding programs like EI is a key step in making the most of the support available to you as a newcomer. By contributing to EI through payroll deductions and meeting eligibility requirements, you’ll have access to financial assistance when you need it most.