In a significant announcement, Employment and Social Development Canada has confirmed an increase in the maximum weekly benefit for its Employment Insurance (EI) programme, set to take effect from 27th December 2026.
Increased Weekly Benefits Across the Board
The new maximum weekly payment for eligible claimants will rise by £20, moving from the current £729 to £749. This enhancement applies uniformly across all categories of EI support, encompassing a wide range of benefits:
- Regular benefits for individuals facing redundancy
- Sickness benefits
- Maternity benefits
- Standard parental benefits
- Caregiving benefits
- Compassionate care benefits
Workers who initiate an EI claim on or after 27th December 2026 will be subject to this new, higher rate, irrespective of their termination date or when they submitted their application.
Extended Parental Benefits Also See Rise
Parents opting to distribute their leave over a more prolonged period, utilising the extended parental benefit option, will also observe an upward adjustment in their weekly ceiling. This specific benefit will increase from £437 to £449 per week.
It is important to note the differing calculation methods for these benefits. While the majority of EI benefit categories are calculated at 55% of an applicant's average insurable weekly earnings, extended parental benefits are determined at 33% of those earnings. Consequently, a considerable number of claimants will receive a weekly amount that falls below the newly established £749 maximum, reflecting the percentage-based calculation.
Eligibility for the Maximum Payment
The £749 figure denotes the upper limit of the weekly benefit, rather than a universal payment for all claimants. To qualify for the full maximum amount, a worker must have earned at or exceeding the new maximum insurable earnings threshold of £70,800 per annum. Individuals whose earnings fall below this figure will receive a proportionately reduced weekly benefit, calibrated against their actual average insurable weekly earnings.
The revised threshold of £70,800 supersedes the previous annual cap, establishing the point beyond which additional income is no longer factored into the EI calculation. It is crucial for claimants to understand that the changes are implemented based on the claim start dates. Therefore, workers whose claims commenced prior to 27th December 2026 will continue to receive benefits under the rates applicable at the time their claim was opened.