Canada Employment Insurance : As of April 1, 2025, Canada has introduced a series of groundbreaking Canada Employment Insurance (EI) reforms designed to provide greater support to workers impacted by layoffs, economic instability, and shifting industry dynamics. These reforms aim to deliver faster access to benefits, higher payouts, and lower eligibility barriers, especially in regions facing lower unemployment rates.
If you’ve recently lost your job, are a seasonal worker, or plan on claiming maternity or sickness benefits this year, these changes could significantly impact your finances.
Why Did Canada Revamp EI in 2025?
Canada is facing economic challenges in 2025, including global trade disruptions and domestic slowdowns in key sectors like retail, construction, and tourism. As unemployment rates fluctuate across provinces, the government is using EI as a safety net to support workers and bolster regional economies.
These changes are temporary, but they introduce substantial improvements to Canada’s workplace safety net, ensuring workers receive more timely and meaningful support during uncertain times.
Increased EI Payments & Lower Premiums: What You Can Expect in 2025
What Changed? The standard one-week unpaid waiting period for Canada Employment Insurance (EI) claims will be waived for applications submitted between March 30 and October 11, 2025.
Why It Matters: This reform allows claimants to receive their first
EI payment faster, which can significantly alleviate financial stress when you need it most.
Important Note: If your employer provides a Supplemental Unemployment Benefit (SUB) top-up, you may still want to serve the waiting period in order to maximize your overall payout. Check with Service Canada or your HR department for specifics.
1. Keep Severance, Vacation Pay, and Full EI Benefits
What Changed? If you receive severance pay, unused vacation pay, or bonuses after losing your job, these payments no longer affect your EI benefits.
Why It Matters: This is a significant change for those laid off with separation packages. Under the new rules, workers can retain full EI benefits while keeping severance or vacation pay, helping ease the financial transition.
Example: Sarah from Ontario gets laid off and receives $2,000 in severance. Previously, her severance would reduce her Canada Employment Insurance benefits. Now, under the new rule, she can receive both full severance and full EI.
2. Easier Eligibility in Low-Unemployment Regions
What Changed? Between April 6 and July 12, 2025, the government is artificially raising regional unemployment rates to make it easier for workers in areas with lower unemployment to qualify for Canada Employment Insurance benefits.
How It Works:
- If the unemployment rate in your region is 6.1% or lower, it will be raised to 7.1%.
- If the rate falls between 6.2% and 12%, it will be increased by 1%.
- If the unemployment rate is between 12.1% and 13%, it will be rounded up to 13.1%.
- If the rate is already above 13.1%, no changes apply.
Why It Matters: Higher unemployment rates mean that you need fewer work hours or earnings to qualify for EI benefits.
Example: John is a seasonal worker living in Calgary, where the unemployment rate stands at 5.8%.Under the new rules, the unemployment rate will be adjusted to 7.1%.
Who Is Eligible for the 2025 EI Benefits?
The 2025 EI reforms apply to several groups of workers:
- Regular EI Claimants: Workers who lose their job through no fault of their own, have worked the required number of hours, and are actively seeking employment.
- Fishing Benefits Claimants: Those who earn enough in fishing-related income within the qualifying period.
- Special Benefits Claimants: Individuals receiving maternity, parental, sickness, caregiver, or compassionate care benefits who are eligible for the waived waiting period.
$500 Canada Housing Benefit 2025: Is it Back? Know Eligibility & Application Process
$256 Centrelink Cost of Living Cash Boost Arrives in April 2025: Who’s Eligible, How to Get It?
How to Apply for EI Benefits in 2025
Step 1: Check Your Eligibility Use the EI Eligibility Tool or contact Service Canada to confirm your eligibility.
Step 2: Gather Required Documents
- Record of Employment (ROE)
- Social Insurance Number (SIN)
- Direct Deposit Information
- Details of Separation Earnings (e.g., severance, vacation pay)
Step 3: Submit Your Application Online You can apply for Canada Employment Insurance benefits online through the Service Canada EI Portal as soon as you stop working.
Step 4: Submit Biweekly Reports To keep your claim active, submit biweekly reports on your job search efforts and any work hours you’ve accumulated.
Key Dates to Keep in Mind
- October 11, 2025: End of the temporary waiting period and separation earnings rule changes.
- July 12, 2025: The adjusted unemployment rate thresholds will come to an end.
Though these changes are temporary, there is ongoing public and policy advocacy to make some of these changes permanent, including:
- Lowering minimum work hour requirements
- Expanding Canada Employment Insurance coverage to include gig workers and freelancers
- Increasing benefit durations
FAQs About Canada’s 2025 EI Changes
Q: Can I still receive EI if I’m on maternity or parental leave?
A: The waiting period for maternity and parental benefits has been eliminated.
Q: How can I qualify for Canada Employment Insurance in a region with a low unemployment rate?
A: The government is temporarily adjusting regional unemployment rates, making it easier for you to qualify by requiring fewer work hours or earnings.
Q: Do I need to apply for Canada Employment Insurance immediately after losing my job?
A: Yes, you can apply as soon as you stop working. Even if you’re unsure about eligibility, it’s better to apply sooner rather than later.
