Many Canadians rely on **Employment Insurance (EI)** benefits after losing a job through no fault of their own. But what happens if you find part-time or temporary work while receiving EI? Can you earn additional income without disqualifying yourself from those vital benefits? The good news: you can — but with specific limits and conditions.
The **Working While on Claim (WWC)** program is a federal initiative that permits EI recipients to earn money while continuing to receive a percentage of their regular benefits. It’s a way to both support job seekers financially and encourage a quicker return to the workforce. However, the rules can feel complex, especially when considering deductions and thresholds. Understanding how much you’re allowed to earn under the current regulations is key to maximizing both your earnings and your employment insurance.
This guide explains the latest thresholds, how earnings are calculated, what income counts under EI, and what strategies might benefit you the most.
EI Working While on Claim: Key Info at a Glance
| Category | Details |
|---|---|
| Program Name | Working While on Claim (WWC) |
| Applicable Benefits | Regular EI, Sickness, Parental, Maternity, Fishing, and Compassionate Care benefits |
| Weekly Income Threshold | Earn up to 50% of your weekly EI benefit amount with no deduction |
| Deduction Rate | Every dollar earned over the 50% threshold reduces EI by $0.50 |
| Full Benefit Cutoff | If you earn as much or more than 90% of your previous weekly earnings, you may not receive any EI for that week |
What changed this year
In previous years, EI claimants had more flexibility to choose between a fixed threshold or declaring all income with a different deduction structure. However, beginning in 2021 and continuing through to 2024, the **Working While on Claim rules reverted to a single 50% earnings allowance rule**. This change affects all new claimants and some claimants still on active files.
That means you now can earn up to **50% of your weekly EI benefit amount**—without any deductions. Any income over that limit reduces your benefit by 50 cents for every dollar earned. These adjustments aim to offer a blend of income support while incentivizing Canadians to re-enter the workforce without abruptly losing their benefits.
“The Working While on Claim rules serve as a crucial bridge for those transitioning from unemployment back to the workforce. It reduces the punitive aspect of finding initial part-time work while job hunting.”
— Jane Wallace, Senior Policy Analyst
Who qualifies and why it matters
Anyone currently receiving EI benefits may be eligible to work and still get partial benefits via the Working While on Claim program—including those on:
- Regular EI claims due to job loss
- Parental or maternity benefits
- Sickness or compassionate care benefits
- Fishing benefits (for seasonal employees)
It’s important to note that even if you work a few hours a week, you must report **any earnings** during your EI claim period. Not doing so can result in overpayments, penalties, or loss of future benefits. Whether you pick up a temporary contract or help out with freelance tasks, your income must be declared each week you claim EI.
How deductions are calculated
The calculation depends on your **weekly benefit rate**. For example, if you’re receiving $500 per week in EI, you can earn up to **$250 extra per week** (50%) without any deduction. If you earn more than that, the extra amount will be reduced from your EI on a 50-cent-per-dollar basis.
Example:
- Weekly EI benefit: $500
- Working income for the week: $400
- Exempt income: $250 (50% of EI benefit)
- Income over threshold: $150
- Deduction: $75 (50% of $150)
- EI payout for week: $425
This deduction structure makes working part-time or seasonally worthwhile for many claimants, especially if the income is under the 90% cap that halts weekly payments entirely.
Reporting your income correctly
When you file your weekly or bi-weekly report, you’re required to list any work you did—even unpaid or trial work—and any income you earned or expected to earn. This includes tips, commissions, self-employment, and casual jobs. Failing to report even a few dollars can trigger clawbacks or disqualifications later on.
“Transparency is everything. Reporting any and all work-related income ensures you’re staying compliant—and helps avoid costly audits or repayments.”
— Thomas Leger, EI Compliance Officer
Strategic considerations for part-time job seekers
Working while receiving EI isn’t just allowed—it can be a wise long-term strategy. Those who supplement benefits with employment improve their job prospects, sustain skill development, and ease the emotional hardship of being jobless. However, careful scheduling and understanding your earnings thresholds is essential.
Claimants may find it smarter to accept shifts that maximize their **net benefit**—staying just below the deduction cap for more consistent total income. Others may determine that higher-paying contract or freelance work is a better route, even if it temporarily pauses their EI eligibility entirely.
| Winners | Losers |
|---|---|
| Part-time workers who stay under the 50% threshold | Claimants who forget to report income and face penalties |
| Gig workers using EI to support job transition | Workers exceeding the 90% cap and losing weekly EI |
| Parents or caregivers doing weekend or remote work | Freelancers unaware of how to declare sporadic pay |
How to apply step-by-step
Applying for EI begins immediately after a job loss or qualifying event. Once approved, you must continue to file claims every two weeks and report any work done during the period. Here’s a breakdown:
- Complete your **initial EI application** online or in person
- Receive confirmation and your weekly benefit rate
- Begin your two-week reporting cycle via phone or online
- Report all income earned or hours worked during each period
- Calculate how much of your income falls under the 50% exemption
- Ensure that you are available and actively looking for work (if applicable)
- Continue reporting until your claim ends or you return to full-time work
Risks of not complying with EI income rules
Working on EI does not excuse anyone from EI compliance rules. If you underreport your income or intentionally give misleading information, you may be asked to repay the full amount plus additional penalties. A proven case of fraud could also ban you from receiving EI in the future.
Always err on the side of caution: if you’re unsure whether a payment counts as income, report it. The Service Canada team will make the final determination.
Short FAQs about EI and working while on claim
Can I work while receiving EI without losing benefits?
Yes, you can. Under the Working While on Claim program, you can earn up to 50% of your weekly EI benefit with no deduction. Earnings beyond that are deducted from your EI at a rate of 50 cents per dollar.
What happens if I earn more than 90% of my previous wage?
If your weekly income reaches or exceeds 90% of the income you earned before starting EI, you won’t receive EI benefits for that week.
Does the type of job affect how my EI is calculated?
No, whether you work freelance, part-time, or temporary jobs, all income must be reported and will be factored into your benefit calculation.
Is self-employment income included?
Yes. All self-employed income must be declared, just like wages from an employer. Failure to report this may result in penalties or overpayment assessments.
How often do I need to report my earnings?
You must report your income every two weeks as part of your regular EI bi-weekly claim process.
Can I stop working one week and go back to full benefits?
Yes. If you have no earnings in a given week, you’ll receive your full EI entitlement, assuming you meet all other eligibility criteria.
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