Employment Insurance changes come into effect

Employment Insurance changes come into effect

New EI terms came into effect on Sunday to take over from the Canada Emergency Benefit (CEP), which will be abolished on Saturday, October 3 after paying billions of dollars to Canadians in Canada. in recent months.

So Canadians who had become accustomed to receiving $ 2,000 a month under the PKU program will have to turn to EI. Those who receive ECPs through Service Canada will automatically transfer from one program to another, while those who receive ECPs from the Canada Revenue Agency will need to apply for EI. This request must be matched with the records of employment received during the 52 weeks preceding the first payment of the PCU.

Currently, enhanced employment insurance will allow the unemployed to receive a minimum of $ 400 per week, for a maximum of 26 weeks, if they have accumulated at least 120 hours of insurable employment during their last year of work. This is a threshold that has been significantly lowered, previously set at 420 hours, in order to allow more Canadians to receive employment insurance.

However, under an agreement with the NDP, the bill on economic recovery in response to COVID-19 tabled last Thursday should be improved so that benefits reach a minimum of $ 500 per week, i.e. equivalent of what the PCU allowed to touch.

Bill C-2 also provides compensation for workers affected by COVID-19 or who must be placed in isolation, as well as for family caregivers, including parents who have to take care of a child due to the temporary closure. from their school, for example.

It should be noted that Canadians who find themselves earning more than $ 38,000 in fiscal year 2020 thanks to the new employment insurance program will have to reimburse 50 cents for every dollar received in excess.

Some 4 million Canadians still receive ECPs. Of the number, about 3 million will migrate to employment insurance, forecasts Ottawa.

The PCU program had cost Ottawa $ 79.3 billion as of September 20. Some 8,830,000 people have received payments from the PCU at one time or another, including just over 2 million Quebeckers.

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