Declaring Your Earnings while on Employment Insurance (EI)
Earnings while on claim
Allowable earnings
Reporting your earnings
Mistakes can happen
So, what happens if you do make a mistake?
How do we consider the undeclared earnings
Just a reminder
Earnings while on claim
Most people know that you can’t work full-time and receive regular EI benefits. But did you know that the rules let you receive some benefits if you work part-time?
You could receive different types of monies during your benefit period. The earning chart shows you if that money is taken in consideration and, if so, how it is allocated.
Allowable earnings
If you are receiving regular, parental or compassionate care benefits, you can earn 25% of your weekly benefit or 50$, whichever is higher, without changing the amount of EI benefits you will receive for that week. Any monies earned above that amount will be deducted dollar for dollar from your benefits. You must, however, always declare all your earnings.
However, effective December 11, 2005, if you are living in one of the 23 participating economic regions, the amount you can earn while working part-time and receiving EI benefits is the greater of $75 or 40 % of weekly benefits. To know more...
Reporting your earnings
Don’t forget that all monies that you earn while on EI must be reported in the week that you actually worked. You can declare your earnings before deductions, when you complete your reports through our Internet reporting service or our Telephone reporting service.
If your earnings before deductions are not reported correctly, you may not receive all the benefits you are entitled to or you may have to repay benefits to which you were not entitled.
Tip: Use the reporting calendar — PDF 11 kb — to keep track of your earnings and hours worked. About PDF Files.
Mistakes can happen
Mistakes can happen when filling out reports or filing your report over the phone. Some of the most common errors made are:
- estimating weekly earnings instead of declaring the actual amount earned and then forgetting to tell us so we can adjust your file;
- forgetting to declare all the earnings received;
- writing/entering the wrong number when reporting earnings;
- adding up the number of hours wrongly.
Some mistakes can cause a delay in payment and others could cause an error in the amount of benefits you receive — either higher or lower than your entitlement.
So, what happens if you do make a mistake?
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These two examples will give you an idea. Example 1 — Reported earnings too high If you declared earnings higher than what you actually earned, your EI benefits may have been less than you were entitled to. Let us know, we will adjust your file and ensure that you receive all the benefits to which you are entitled. Example 2 — Reported earnings too low If you declared less earnings than what you actually earned, you may have received more benefits than you were entitled to and it could result in an overpayment. Let us know, the overpayment will have to be paid back, but we'll ensure that the repayment causes no undue financial hardship. |
More information on overpayments...
How do we consider the undeclared earnings
If money was earned but not declared for a specific week, Human Resources and Social Development Canada (HRSDC) will go back and allocate that money to the week in which it was earned. An overpayment for that specific week will be established.
For example, work is performed during 4 weeks and the earnings are allocated as follows:
| Week | Amount earned | Amount declared | Benefits paid | Benefits that should have been paid |
|---|---|---|---|---|
| 1 | $200 | $200 | $316 | $316 |
| 2 | $600 | 0 | $413 | 0 |
| 3 | $600 | 0 | $413 | 0 |
| 4 | $200 | $200 | $316 | $316 |
The benefit rate is $413 and the allowable earnings are $103, i.e. 25% of $413.
Calculation for benefits paid in weeks 1 and 4: benefit rate of $413 + allowable earnings of $103 = $516 - amount earned of $200 = $316.
If earnings would have been declared on the reports, no benefit would have been paid for weeks 2 and 3, because the earnings for each of these weeks are higher than the benefit rate plus the allowable earnings, i.e. $413 + $103=$516. Consequently, an overpayment of $826 has to be repaid, i.e. $413 for week 2 and $413 for week 3.
Just a reminder
Your report can be amended at any time. So, if you think you have not reported your earnings correctly, Let us know. Call our telephone information service at 1 800 206-7218, from 8:30 am and 4:30 pm, and press "0" to speak to a representative. You can also write or go to your Service Canada Centre to correct the situation.
