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5 Changes to Employment Insurance in the 2016 Federal Budget

Mar 31, 2016 4:01:54 PM
By Leslie Haber

in Expert Series

Last week, Canada's new federal budget was unveiled, highlighting several important changes to the country’s employment insurance program. Notably, EI benefits were sweetened for oil regions that have been hard-hit. On the contrary, the notable pledge of offering a 12-month holiday on EI premiums to employers who give permanent jobs to people aged 18-24, was absent from the budget. The combined changes will cost $1.02 billion this year, and $1.45 billion next year

Here are 5 key changes that might affect you:

  1. An added 5 weeks of eligibility up to a maximum of 50 weeks of regular benefits to unemployed workers in several regions of the country (notably, the prairies) that have experienced unemployment rates rise for an extended period of time

  2. Instead of waiting two weeks for their first payment, new EI recipients will only have to wait one week. In addition, processing applications will be done faster, and more money is being put toward government call centers. This way, you hopefully won’t be waiting an hour on the phone to speak to someone!

  3. Young people entering the workforce for the first time, as well as re-entrants, will only have to work between 420 – 700 hours over the previous year to qualify for EI. The number ranges depending on the labor conditions in your area. This is a significant decrease from a previous 910 hours.

  4. The government is extending the “working while on claim” pilot project. More information on specific changes can be understood through the attached link!

  5. Do you work for a company that is facing the prospect of layoffs? You can opt to work fewer hours and now receive EI benefits up to a maximum of 76 weeks, a substantial increase from the previous 38 weeks.


Notably absent from the budget was the pledge to offer a 12-month holiday on EI premiums to employers who give permanent jobs to people aged 18-24. Trudeau had previously promised that the initiative would encourage employers to hire young people and consequently reduce the country’s youth unemployment rate.


As well, Edmonton was the only region in Alberta to be left out of the aforementioned EI extension.

For more information on Canada’s 2016 Federal Budget – click here.

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