EI for the Self-Employed
The new EI Measure for Self-Employed People extends access to EI special benefits to self-employed people on a voluntary basis.
Special Benefits:
- maternity benefits, which are available to birth mothers only and cover the period surrounding the child's birth (maximum of 15 weeks);
- parental benefits, which are available to biological or adoptive parents while they are caring for newborn or newly adopted children—these benefits may be taken by either parent or shared between them (maximum of 35 weeks);
- sickness benefits, which may be paid to a person who is unable to work because of illness, injury, or quarantine (maximum of 15 weeks); and
- compassionate care benefits, which may be paid to a person who has to be away from work temporarily to provide care or support to a family member who is gravely ill with a significant risk of death (maximum of 6 weeks).
Note: Self-employed Quebec residents are already covered for maternity and parental benefits through the mandatory Quebec Parental Insurance Plan for the Self-Employed but can choose to participate in the federal program to become eligible for the sickness and compassionate care benefits.
Who can participate:
- self-employed individuals who operate their own business;
- self-employed individuals who are employed by a corporation but not eligible to participate in the EI program as an employee because they control more than 40 percent of the voting shares of that corporation.
- Canadian citizens or permanent residents.
The Cost:
- The maximum EI premium for the year 2012 is $839.97 ($674.73 in Quebec).
- The 2012 rate is calculated the same way as for employees, e.g, based on $1.83 per $100 of earnings ($1.47 in Quebec), up to a maximum insurable earnings of $45,900.
- There is no employer portion to be paid.
Important Considerations:
- Once you have received EI special benefits, you must continue to pay EI premiums on your self-employment income for the entire duration of your self-employed career, regardless of any change in the nature of your self-employment.
- You can terminate your agreement only if you have not received EI special benefits as a self-employed person.
For further information please see Service Canada's EI Special benefits for Self-Employed page. To apply on line review their application process or visit a Service Canada Center near you.
For more information, please contact your CFIB Business Counsellor at cfib@cfib.ca or 1-888-234-2232.
