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CERB is transitioning to EL - FAQs

CERB is transitioning to EL - FAQs

The federal government announced on Thursday that the Canada emergency response benefit (CERB) will be extended an additional month and then transition to a modified employment insurance (EI) program.


The changes will come into effect on Sept. 27 and will be in place for one year, with three additional programs proposed for those who do not qualify for EI.


Here's what you need to know about the developments and how you can qualify ahead of the transition. 


I'm currently receiving CERB. What happens when it ends?


CERB, the federal income assistance program that has provided more than 8.5 million individuals $2,000 a month since April 6, will end on Sept. 27. 


Canadians who have been receiving CERB through Service Canada and are already eligible for EI will automatically transition to EI benefits once CERB ends next month.


Those who are eligible for EI but have been receiving CERB through the Canada Revenue Agency will need to apply through Service Canada. 


Who qualifies for EI under the new changes? 


The federal government has two kinds of EI that apply generally to workers: regular benefits and special benefits. 


EI regular benefits provide assistance to employees who lose their jobs involuntarily and are actively looking for work. Those who are eligible will receive a minimum of $400 for up to 26 weeks, or $240 per week for extended parental benefits.  


EI special benefits provide assistance to employees or self-employed individuals who are absent from work due to specific life circumstances, including sickness, maternity, parental benefits, as well as compassionate care or family caregivers. 


In both cases, individuals must report at least 120 hours of work — approximately 3.5 weeks of full-time hours — in the past 52 weeks, or since their last claim in order to qualify for EI. Normally, the number of hours of insurable employment required to be eligible for EI regular benefits ranges from 420 to 700 hours, and 600 hours for special benefits, depending on the region. 


Individuals are required to apply after every two-week period for which they need support and can report that they continue to meet the requirements.


Under the new changes, and to encourage recipients to work, individuals can still earn income from self-employment while receiving the benefit. However, recipients would need to repay $0.50 of the benefit for each dollar earned above $38,000. 

Those who don't qualify might be eligible for one of the three new proposed benefits.


What if I don't have enough hours to be eligible for EI?


The federal government has introduced a one-time credit system to make it easier for workers who are unable to meet the required hours of eligibility for both regular and special benefits prior to the new changes coming into effect on Sept 27.


This will apply retroactively to workers who could not establish their EI claim from March 15 to Sept. 26 due to not having worked enough hours and wanted to switch to EI from CERB early. 


For those applying for regular benefits, a credit of 300 hours will be applied. For special benefits, a credit of 480 hours can be claimed retroactively starting from March 15. 

Both of these credits are available for one year. 


What about EI premiums?  


EI insurance premium rates will be frozen for two years at the 2020 rates. That means for every $100 of insurable earnings, $1.58 will be deducted from the worker and $2.21 from the employer. 


According to Deputy Prime Minister and Finance Minister Chrystia Freeland, these are the lowest rates since 1980. 


What are the 3 new benefit programs? 


For individuals who are not eligible for EI and are in need of temporary income support, the following three benefits will be introduced:


The Canada Recovery Benefit will provide $400 per week for up to 26 weeks for workers who are self-employed and cannot resume or return to work. 


The Canada Recovery Sickness Benefit will provide $500 per week for up to two weeks for workers who are ill or must self-isolate due to COVID-19-related reasons. 


The Canada Recovery Caregiving Benefit will provide $500 per week for up to 26 weeks per household for those who are unable to work because they care for a child under 12 or another dependent whose school, daycare or other day program facility is shut down due to COVID-19.


Applications for the new recovery benefits are scheduled to open in October, with payments expected to flow in three to five days.


But the recovery benefits still require parliamentary approval in order to become available. Parliament is currently prorogued until Sept. 23, after which a new bill will have to be adopted after the speech from the throne.


How many Canadians will qualify? 


According to Freeland, 4.5 million Canadians are currently on CERB. When the program ends, an estimated three million will enter the EI system, and another one or two million are expected to use the recovery benefits.  


As of early August, more than four million individuals have moved off CERB and have returned to the workforce. 


How much will all these programs cost? 


All told, $37 billion. The government says the three new recovery benefits, which will be taxed at source, are expected to cost $22 billion; the extension of CERB another $8 billion; and added EI costs are set at $7 billion.


Source:

https://www.cbc.ca/news/canada/cerb-ei-covid-benefits-1.5695448


Author: Richa Syal

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37 Saved
33 Comments
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Hijran · Aug 23, 02:06
What about CESB?
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Dharma· Aug 23, 02:38
It’s still applicable on eligible businesses.
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Dharma· Aug 23, 02:37
Any member needs any clarification can contact me. I am a practicing CPA with over 30 years of experience.
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Dheivendar · Aug 23, 16:13
Hi is this applicable for international students who worked 120 hrs + and got reduced hours ?
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Sachin· Aug 23, 17:20
Hi sir I am sachin I have two kids I was leaved in bc 4year on work permit I have LMIA at Fram supervisor and my wife she have open workpermit in bc I am not meet point for Pr that why I moved Saskatchewan Weyburn my wife she got sinp Job offer I apply CREB at March till I am gating because my wife she going to job and I take care my kids I am no going job so I am eligible or I give back that all sport plz let me know
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Dharma· Aug 23, 19:57

Dheivendar International students are eligible provided they qualify other conditions.

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Dharma· Aug 23, 19:57
[Homeis User] last week only PM announced e handed EI benefits. Perhaps you could be a fit case.
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Jordan· Aug 23, 06:30
I hope this ends, cuz a lot of people has gone lazy and don’t want to return to normal work even now. Lots of people in this world still struggles for their daily food and we the young ones going lazy due to these kinda government funded programs is unfair.
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Rajath· Aug 23, 16:32
Have you ever thought of the hospitality and tourism industry ... For example lets say weddings, parties, sports events, etc.... A huge impact has been done by corona to these industries and these industries hasn't even started operating even half percent it used to... So what do you suggest, stop the support for people who are ready to work, but still doesn't have a job to go to and even if they try to move to a temporary job, there will be 100s of people well qualified than them in that particular field.
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Dharma· Aug 23, 20:01
Agreed fully. This is taking Canada to a huge labour shortage for time being, enhanced cash economy, making public more corrupt, creating unimaginable fiscal deficit Wich ultimately result into inflation, businesses shutting down, long term job loss, recession and increased taxes.
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1 Like
Pranav· Aug 23, 16:09
Excellent article, thanks for sharing.
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Shahzad · Aug 23, 16:10
Do new immigrants have any benifit from this?
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Anand· Aug 23, 16:11
Thanks for sharing
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Esther · Aug 23, 17:06
Thanks for sharing this important information. What will happen to those who already got EI and now on CERB?
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Rehana· Aug 23, 18:25
What about those looking for job but can't find any, are they able to get any financial support even having applied for someone's sponsorship?
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Prabhjot· Aug 23, 18:31
Thank you for sharing
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Baljeet· Aug 23, 19:12
Thanks for sharing this
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Arash· Aug 23, 19:56
What if you have already taken ur EI and now you are in CERB. Are u still gonna be eligible for another EI?
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Dharma· Aug 23, 20:02
Check new announcements made by PM last week.
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Najibullah· Aug 23, 21:47
Do the people who have income less than 1000 per month from Ontario works benefits! Are eligible for Cerb or EI new benefits?
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Pallavi· Aug 24, 15:20
For all those who are currently receiving CERB benefits and was working before CERB, please make sure all your Record of Employment (ROE) for the last year is issued and any paper you get from employer ROE is submitted to Service Canada. Electronic ROE doesn't need to be sent. This will ensure there is no pay gap when your CERB transfers into EI (if you qualify for EI). There will be no EI payment after CERB ends if the ROE's aren't submitted!
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Mirza· Aug 27, 08:40
Have worked from last week of Dec 2019 up to March 2020 first week, 200+ insurable hours and have all pay stubs, receiving CERB via Canada Revenue Agency, am I qualify for EI and to apply through Service Canada?
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Pallavi· Aug 27, 13:21

Mirza I don't know if you will qualify or not but Service Canada will need your ROE on record to calculate and see if you qualify! You should contact your employers and ask them to issue your ROE. Most places now issue them electronically, in which case you don't have to do anything more than ask them to issue it. If your employer gives you a paper copy of your ROE, you will have to mail it out. The address will be available on [[Sign In to see link]] under Employment Insurance :) hope that helps!

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Mirza· Aug 27, 15:33

Pallavi thanks

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BABAR · Aug 24, 20:56
Good move
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Mirza· Aug 27, 10:20
Dharma Jain - please comment. Thanks
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Dharma· Aug 28, 11:26
Mirza Baig : in my view under new announcements from ON if you have an ROE and worked 120 hours you may qualify. Best suggestion is to speak with Service Canada and confirm.
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Mirza· Aug 28, 21:05

Dharma thanks

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Mirza· Aug 29, 22:05

Dharma I can simply request the company where I worked, they can issue ROE or Service Canada has to request to the employer? Please help how to obtain ROE.

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Pallavi· Aug 31, 17:53

Mirza you request the ROE from your employer. If after trying to get it from your employer, your employer doesn't issue it, then Service Canada will be able to help you get it. However, you are required to ask the employer first :)

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Mirza· Aug 31, 17:56

Pallavi thanks very much

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Dharma· Aug 30, 17:06
Yea
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Dharma· Aug 30, 17:06
Yes
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