Employment Insurance

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For the past several years Service Canada has been revamping the employment insurance legislation.

The revamp began with the best 14 Week Pilot Project.  This project was intended to assist those Canadians living in areas of the country with extremely high unemployment and an inconsistent job market.  These folks were granted benefits based on the best 14 weeks of earned income in the prior 52 weeks.

It was announced last week that those collecting Employment Insurance benefits as of August 2012 will be allowed to earn more working income per week without impacting EI payments…  The link below will take you directly to the legislation update.

http://www.servicecanada.gc.ca/eng/ei/information/wwc.shtml

Comparison table of the previous pilot project and
the new pilot project
Previous method New method
Weekly insurable earnings $600 Weekly insurable earnings $600
EI weekly benefit amount (55% of $600) $330 EI weekly benefit amount (55% of $600) $330
Gross earnings declared during a week while on EI benefits $450 Gross earnings declared during a week while on EI benefits $450
Earnings amount
(40% of the benefit amount: $330 x .40 = $132)
$132 Earnings amount
(50% of gross earnings: $450 x .50 = $225)
$225
Net EI benefit payment for that week
($330 + $132 – $450 = $12)
$12 Net EI benefit payment for that week
($330 + $225 – $450 = $105)
$105
Combined earnings and EI benefits ($450 + $12 = $462) $462 Combined earnings and EI benefits ($450 + $105 = $555) $555 

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