The Canadian Federal Government is introducing changes to Employment Insurance (EI) Benefits to offer enhanced flexibility for new parents.
The Federal Budget 2017 proposes to make EI parental benefits more flexible. Canadians can expect to see a new 18 month maternity leave option available soon.
Parental leave will be extended up to 18 months for new parents who wish to take a longer leave of absence from work. Total EI payments will not increase. Under the proposed changes, parents can choose to receive the EI parental benefits over an extended period of up to 18 months at a lower rate. The lower rate will be 33% of average weekly earnings.
For those parents who choose to receive payments over a period up to 12 months, the EI parental benefits will continue to be available at the existing rate of 55 per cent.
Employers who offer parental leave top up benefits should review and amend their policies. Employers will need to decide whether or not to offer top up benefits beyond the 12 month period. Many small and medium sized businesses do not have parental leave top up programs. Uptake on the extended leave may be limited as parents could find the lower EI benefit unmanageable.
Women may also claim EI maternity benefits up to 12 weeks before their due date. This feature is a change from the current standard of 8 weeks.
Summary of changes to Employment Insurance Maternity and Parental Benefits
- Parental leave extended from 12 months to up to 18 months.
- Total EI benefit payments remain the same.
- EI benefit rate 33% of earnings, for new extended parental leave up to 18 months.
- EI benefit rate 55% of earnings, for parental leave up to 12 months.
- Maternity benefits available up to 12 weeks before due date.
- Employment insurance premiums are expected to increase slightly in 2018.
To implement these measures, the Federal Government proposes to amend the Employment Insurance Act. Provincial legislation will also require amendments to match these changes. Learn more about the new 18 month maternity leave and the Federal Budget 2017.
