Employment Insurance Benefits for Self-Employed People

Self-employed Canadians are able to voluntarily access Employment Insurance (EI) special benefits. There are four types of EI special benefits:

  • EI Maternity benefits (15 weeks maximum) available to parents of a new born child. It covers the periods surrounding birth. A claim can be submitted up to 8 weeks before the expected date of birth, and end as late as 17 weeks after the birth;
  •  Parental / adoptive benefits (35 weeks maximum) available to adoptive, biological or otherwise legally recognized parents while they are caring for a newly adopted or newborn child. It may be taken by either parent or shared between them;
  •  Sickness benefits (15 weeks maximum) which may be paid to a person who cannot work because of injury, sickness, or quarantine;
  •  Compassionate care benefits (26 weeks maximum), that may be paid to persons who have to be away from work temporarily to provide support or care to a family member who is gravely ill with a significant risk of death; and
  •  Benefits for parents of critically ill children (35 week maximum): available to eligible parents who take leave of work to provide care or support to their critically ill or injured child.

You are eligible to access the EI special benefits if you:

  •  Are a self-employed person or you work for a corporation but cannot access EI benefits because you control more than 40% of the corporation?s voting shares; and
  •  Are a Canadian citizen or a permanent resident of Canada; and
  • Have voluntarily entered into an agreement with the Canada Employment Insurance Commission through Service Canada, people such as barbers, hair dressers, taxi drivers, and fishers, who are not hired as employees.

Self-employed Canadians are required to voluntary opt into the Program at least one year prior to claiming benefits. Premium payments begin in the tax year in which they enrolled in the EI Program. Register to participate in the EI program through “my service Canada” account.

EISelf-employed individuals need to have earned a minimum of $6,820 in 2015 of self-employed earnings to access the 2016 EI special benefits.

Self-employed persons can opt out of the EI Program at the end of any tax year, provided they have never claimed any benefits. If a claim for benefits was made they have to continue to contribute to the EI Program on their self- employed earnings for as long as they are self-employed.

Self-employed Canadians that opt into the EI Program will pay the same EI premium as salaried employees (maximum of $955.04 in 2016). She or he will not be required to pay the employer’s portion of the EI premiums.

Self-employed residents of Quebec continue to receive maternity, paternity, and parental payments under the Quebec Parental Insurance Program. Self-employed Quebec residents can also choose to apply for the federal program mentioned above.

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