The Government of Canada announced November 3rd that it will introduce legislation that would extend Employment Insurance (EI) special benefits, including maternity, parental, sickness and compassionate care benefits, to the self-employed.
Prior to this announcement, self employed Canadians were not eligible to receive maternity benefits or any benefits for being sick or injured. These events place a great financial burden on and extending benefits seems to make good economic sense.
The Proposed Changes
Self-employed individuals who opt into the EI program would be eligible for special benefits available to regular salaried employees, including:
- Up to 15 weeks of maternity benefits.
- Up to 35 weeks of adoption benefits.
- Up to 15 weeks of sickness benefits that may paid to a person who is unable to work because of sickness, injury or quarantine.
- compassionate care benefits (6 weeks maximum), which may be paid to persons who have to be away from work temporarily to provide care or support to a family member who is gravely ill with a significant risk of death.
In order to take advantage of the program, individuals would have to opt in to the program at least a year prior to receiving benefits.
For More Information, please see the news release.
{ 5 comments… read them below or add one }
Under this plan, self-employed individuals wouldn’t be eligible for regular EI benefits, but would still pay the same premium as a salaried worker.
It’s a step in the right direction, but paying a reduced premium in return for reduced benefits would be more a equitable solution.
@ Erik:
I agree its a step in the right direction. I’m not sure why there is a reduction in benefits either.
I disagree, the premiums are already reduced because only the employee portion is payable, which is about 40% of what a full time person would pay.
@sam
Thanks for pointing that out…I guess it pays to read the *whole* press release
“Self-employed Canadians who opt into the program would pay the same EI premium rate as salaried employees. They would not be required to pay the employer portion of premiums, in recognition of the fact that they would not have access to EI regular benefits.”
@ Same & Erik:
Me too!
The self-employed individual only pays the regular premium. They don’t pay the employer portion.