EI Maternity and Parental Benefits Ontario: Employee Guide

What are EI Maternity and Parental Benefits?

Employment Insurance (EI) maternity and parental benefits are financial support programs offered by the Government of Canada for parents in Ontario who are expecting a baby or have recently given birth, as well as for those who are caring for a newborn or newly adopted child.

These benefits are designed to help parents in Ontario take time off work to care for their child without significant financial strain.

• EI Maternity Benefits are available for biological mothers, including surrogate mothers, who are unable to work because they are pregnant or have recently given birth. These benefits can be claimed up to 12 weeks before the expected due date and up to 17 weeks after the birth date.
• EI Parental Benefits are available for both parents, including adoptive parents, to share as they choose. These benefits can be taken any time within the first year (52 weeks) after the child’s birth or adoption. There are two options: standard parental benefits, which can be paid for up to 35 weeks, and extended parental benefits, which can be paid for up to 61 weeks but at a lower benefit rate.

Together, EI maternity and parental benefits provide up to 52 weeks of financial support, or 78 weeks for an extended leave from work. This ensures that parents can spend time with their new child without facing significant financial hardship.

It’s important to note that the total combined weeks of maternity and parental benefits cannot exceed 52 weeks for standard benefits or 78 weeks for extended benefits.

Who is Eligible?

To be eligible for EI maternity and parental benefits, you must meet the following criteria:

• You have paid EI premiums through your employment.
• You have accumulated at least 600 insurable hours of work in the 52 weeks before the start of your claim or since the start of your last EI claim, whichever is shorter.
• Your normal weekly earnings have decreased by more than 40% because you are pregnant, have recently given birth, or are caring for a newborn or newly adopted child.
• You are a resident of Canada.

It’s important to note that self-employed individuals can also opt into the EI program to become eligible for maternity and parental benefits, provided they meet the eligibility criteria.

What Is the Difference Between Maternity and Parental EI?

The main differences between EI maternity and parental benefits are:

How Much Money Does EI Pay For Maternity Leave?

When it comes to maternity leave in Ontario, the amount of money you can receive from Employment Insurance (EI) depends on your average weekly earnings before your leave. Here’s a simple breakdown:

• Percentage of Earnings: EI maternity benefits pay 55% of your average insurable weekly earnings. As of January 1, 2024, the maximum yearly insurable earnings amount is $63,200.
• Maximum Amount: The maximum amount you can receive is capped at a specific limit, which is $668 per week as of 2023.
• Tax Deductions: Keep in mind that EI benefits are taxable income, so federal and provincial taxes will be deducted from your payments.

The exact amount of EI you’ll receive can vary based on your individual earnings and the region you live in. Learn more about your rights during maternity leave in Ontario in our comprehensive Maternity Leave in Ontario: Essential Guide.

How Much Is EI Pay For Parental Leave?

The amount of EI pay for parental leave in Ontario depends on the option you choose:

• Standard Parental Benefits: Pay 55% of your average insurable weekly earnings, up to a maximum of $668 per week as of 2024. These benefits can be paid for up to 35 weeks. Up to 40 weeks can be shared between parents, but one parent can’t receive more than 35 weeks.
• Extended Parental Benefits: Pay 33% of your average insurable weekly earnings, up to a maximum of $401 per week as of 2024. These benefits can be paid for up to 61 weeks. Up to 69 weeks can be shared between parents, but one parent can’t receive more than 61 weeks.

Both options allow parents working in Ontario to share the benefits and can be taken any time within the first year after the child’s birth or adoption.

For a deeper understanding of parental leave in Ontario, including paternity leave, explore our essential guides on Parental Leave and Paternity Leave.

Can I Apply For Maternity EI Before I Stop Working?

Yes, you can apply for EI maternity benefits before you stop working in Ontario. You can submit your application up to 12 weeks before your expected due date or the date you plan to start your maternity leave. However, your maternity benefits will only start being paid from the date you stop working or the date your baby is born, whichever comes later.

It’s important to apply as soon as possible to avoid delays in receiving your benefits.

How Long Does It Take EI to Approve Maternity Leave?

It typically takes about 28 days for Service Canada to process and approve an EI maternity leave application. The actual time may vary depending on the volume of applications and the completeness of your submitted information.

To avoid delays, make sure to provide all the required documents and information when you apply. Once approved, you will receive a notice of decision and your benefits will start being paid.

Do You Pay Tax on EI?

Yes, Employment Insurance (EI) benefits, including maternity and parental benefits, are considered taxable income. This means that you will have to pay federal and provincial or territorial taxes on the amount you receive.

Taxes will be deducted from your EI payments before you receive them, so the amount you get in your bank account will be after tax deductions. When you file your annual income tax return, your EI benefits will be included in your total income for the year.

How Do I Apply?

Applying for EI maternity and parental benefits involves a few simple steps:

1. Gather Required Documents: Before you apply, make sure you have all the necessary documents, including your Social Insurance Number (SIN), records of employment (ROEs) from all employers you worked for in the past 52 weeks, and your banking information for direct deposit.
2. Apply Online: You can apply for EI maternity and parental benefits online through the Service Canada website. The application will ask for your personal information, details about your employment, and your expected or actual date of birth or adoption.
3. Wait for Approval: After submitting your application, you will receive a benefit statement in the mail with a four-digit access code. You can use this code to check the status of your application online. It usually takes about 28 days to process your application and start receiving benefits.
4. Receive Payments: If your application is approved, you will start receiving EI maternity and parental benefits directly into your bank account. The amount you receive will be based on your average insurable earnings in the 52 weeks before your claim.
5. Report Your Earnings: While receiving benefits, you will need to complete bi-weekly reports to confirm your eligibility. This includes reporting any money you earn during this period, as it may affect the amount of your benefits.

By following these steps, you can smoothly navigate the process of applying for and receiving EI maternity and parental benefits in Ontario, ensuring financial support during this important time in your life.

Can I work while on EI Maternity or Parental Benefits?

Yes, you can work while receiving EI maternity or parental benefits, but there are rules and implications to consider:

• Earnings Deduction: If you earn money while receiving EI benefits, Service Canada will deduct 50% of your earnings from your benefits, up to 90% of your weekly insurable earnings used to calculate your EI benefit amount. Any earnings above this 90% threshold will be deducted dollar for dollar from your benefits.
• Reporting Earnings: You must report your earnings and hours worked for each week you receive EI benefits. This includes any income from self-employment, part-time work, or other sources.
• Impact on Benefit Duration: Working while on EI does not extend the duration of your benefits. You can still only receive maternity benefits for up to 17 weeks and parental benefits for up to 35 or 61 weeks, depending on the option you chose.
• Flexibility: The Work-Sharing program allows you to work part-time and receive a portion of your EI benefits. This can provide some flexibility and help ease the transition back into the workforce.

Before deciding to work while on EI maternity or parental benefits, it’s important to understand how your earnings will affect your benefit amount and to ensure that you comply with all reporting requirements.

What Happens When EI Ends?

At the end of your EI maternity or parental benefits period in Ontario, a few things can happen:

1. Return to Work: Many parents choose to return to work once their EI benefits period ends. If you plan to go back to your previous job, it’s a good idea to communicate with your employer about your return date well in advance.
2. Extension of Leave: If you wish to extend your leave beyond the EI benefits period, you may need to discuss this with your employer. Keep in mind that any extension may be without pay, as EI benefits only cover a specific time frame.
3. End of Benefits: Your EI payments will stop once you reach the end of your entitlement period. It’s important to budget accordingly and plan for the transition from receiving EI benefits to your next source of income.
4. Updating Service Canada: If there are any changes in your situation, such as deciding to return to work earlier than planned or extending your leave, you should inform Service Canada.
5. Re-entering the Workforce: If you’re not returning to the same employer, you may start looking for new job opportunities. Update your resume, network, and explore job openings in your field.

Can My Employer Make Me Work While I Receive EI Benefits?

No, your employer can’t force you work while you are receiving EI maternity or parental benefits. These benefits are designed to provide financial support while you are unable to work due to pregnancy, childbirth, or caring for a newborn or newly adopted child.

However, you can choose to work while receiving EI benefits, but you need to report your earnings to Service Canada, as it may affect the amount of your benefits. If you decide to work, it should be a voluntary decision, and any work performed should be in accordance with the rules and regulations set by Employment Insurance.

Returning to Your Job After EI Benefits End

When you return to work from maternity or parental leave in Ontario, you have the right to the same job and position you held before taking leave. You must also receive the same pay, hours of work, benefits and responsibilities.

If your original job no longer exists, your employer must give you a comparable position with the same wages, work location, and benefits.

Changes to Your Job

In Ontario, it’s illegal for an employer to make significant changes to an employee’s job without their consent. These changes may include:

• A cut in pay
• A drop in commission
• A reduction of work hours
• A change in duties, responsibilities, or job description
• A shift in work location
• A demotion
• The presence of harassment or discrimination in the workplace

If the terms of your employment are impacted negatively in a serious way, you may be able to claim constructive dismissal through an experienced employment lawyer at Samfiru Tumarkin LLP. We can help you navigate your rights and pursue a full severance package – as much as 24 months’ pay.

Termination

In Ontario, it is illegal for an employer to terminate or fire an employee because they are on a maternity or parental leave. For more information about your rights and when you might have grounds for a wrongful dismissal claim, read our detailed resource on being fired during maternity or parental leave in Ontario.

Your Rights

If you’ve been fired without cause or allegedly for cause, it’s crucial to understand your rights through a consultation with an Ontario employment lawyer at Samfiru Tumarkin LLP immediately.

Do not accept any severance offer, termination papers, or exit agreement from your employer, even if they come with a deadline. These deadlines are pressure tactics used to push you into accepting inadequate compensation. Once you sign and return these documents, you forfeit your ability to negotiate a fair and proper severance package.

Calculating Severance

Calculating a severance package in Ontario involves multiple factors, including:

• Age
• Length of service
• Position at the company
• Commission
• Benefits
• Ability to find similar work

To figure out how much compensation you should receive, use our firm’s free Severance Pay Calculator. It has helped millions of Canadians determine their entitlements.

If your company’s offer falls short of what our Severance Pay Calculator says you are owed, it’s very likely that you have been wrongfully dismissed and should take legal action. In Ontario, your severance package can be as much as 24 months’ pay.

Talk To an Employment Lawyer

The knowledgeable employment law team at Samfiru Tumarkin LLP has helped tens of thousands of non-unionized individuals across the country.

In addition to severance package negotiations, we have experience securing solutions for the following employment matters:

Our lawyers in Ontario, Alberta, and B.C. stand ready to help you solve your workplace issues.

If you are a non-unionized employee who needs help with an employment issue, contact us or call 1-855-821-5900 to get the advice you need, and the compensation you deserve.