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Information on extended CERB and EI in Canada from today's media presser: (thread)
The new plan released Thursday details how most people will be transitioned onto EI, though three new temporary benefits are also being established, including a form of paid sick leave. /1
The new plan released Thursday details how most people will be transitioned onto EI, though three new temporary benefits are also being established, including a form of paid sick leave. /1
In total, these new financial assistance plans are budgeted to cost at least $37 billion over the next year.
While CERB was set to run out at the start of the month for those who have been on the program from the outset, the government is extending the program by an /2
While CERB was set to run out at the start of the month for those who have been on the program from the outset, the government is extending the program by an /2
additional four weeks, to a maximum of 28 weeks. Then, as of Sept. 27, almost all CERB claimants who qualify for Employment Insurance will be transitioned onto that program as their avenue for support once their 28 weeks of CERB run out. /3
The EI system itself is getting a facelift, opening up the criteria for the next year to make it so that Canadians with 120 insurable hours across Canada can apply and receive a minimum payment of $400 per week, and a maximum of $573 per week, depending on past earnings. /4
The reworked EI can be claimed for between 26 and 45 weeks, depending on time worked prior.
EI claimants can earn income, but will have their benefits adjusted, reducing their benefit by $0.50 for each dollar of earnings. /5
EI claimants can earn income, but will have their benefits adjusted, reducing their benefit by $0.50 for each dollar of earnings. /5
The government is also freezing the EI premium rate for two years, as typically it would be set to increase, raising costs for workers and employers. The intent of the longstanding program remains: as a financial aid to employees who involuntarily lose their jobs /6
and are actively looking for work. In addition, the federal government is launching three new benefits meant to target specific reasons why Canadians may be out of work or in need of financial aid. These will also come into effect on Sept. 27. /7
These benefits are also taxable, meaning the tax will be deducted from the payments. The trio are projected to cost $22 billion.
The first is being called the “Canada Recovery Benefit” and will be available for 26 weeks to workers who are self-employed, gig or /8
The first is being called the “Canada Recovery Benefit” and will be available for 26 weeks to workers who are self-employed, gig or /8
contract workers, or otherwise not EI eligible but still cannot return to work. In order to qualify for this $400-a-week program, Canadians must be looking for work and had stopped working or had their income reduced due to COVID-19. Workers will need to repay $0.50 of /9
every dollar earned above an annual net income of $38,000 through their income tax return. A new “Canada Recovery Sickness Benefit” is being created for those who don’t already have paid sick leave through their employer, to make it easier for people to stay home from work /10
when they are sick or have to self-isolate due to COVID-19, without worrying about their income. This benefit will provide $500 per week, for up to two weeks, which remains the current time frame required for Coronavirus isolation. It cannot be claimed if the employee /11
has paid sick leave through their workplace. The federal government has previously spoken about ongoing talks with the provinces and territories to ensure that every worker in Canada who needs it can access 10 days of paid sick leave a year, a concern more /12
important than ever to reduce the spread of the virus by making it possible for anyone who isn’t feeling well to stay home. And the third new program is a “Canada Recovery Caregiving Benefit” providing help in the instances where someone needs to stay home to care for /13
a loved one such as a child under the age of 12 or a dependent because schools, daycares, or other care facilities are closed due to the pandemic. This program offers up to 26 weeks per household, with just one adult per household able to claim the program at a time, and /14
provides $500 a week. It can only be used when facilities are closed and not because people “prefer” to keep their loved ones at home. /15 (end of thread)
