Supplement to Employment Insurance (EI) maternity, parental and compassionate care benefits
Advantages of a supplement
Is registration of the plan required?
What to show on the Record of Employment (ROE)
Information for employees
Additional requirements
Other supplemental plans
Advantages of a supplement
The employer provides supplemental payments to increase the employee's revenue while receiving EI maternity, parental or compassionate care benefits. The supplement is not insurable; therefore EI premiums are not deducted.
The supplement is not deducted from EI benefits if the plan meets the following 2 conditions:
- When the payment is added to the employee’s EI weekly benefits, it does not exceed the employee’s normal weekly wage earnings — 100% of gross salary; and
- The payment is not used to reduce other accumulated employment benefits such as banked sick leave, vacation leave credits, or severance pay.
The supplement can be paid during the EI waiting period without affecting the start of the EI benefits.
topIs registration of the plan required?
The employer is not required to obtain formal approval from Human Resources and Skills Development Canada (HRSDC) for the plan used to supplement EI maternity, parental or compassionate care benefits.
However, records still have to be kept to show the effective date of the plan and that it meets the 2 conditions.
topWhat to show on the Record of Employment (ROE)
When completing the ROE, the employer must indicate in the "Comments" section or in an accompanying letter that a maternity, parental or compassionate care supplement will be paid and that the 2 conditions are met.
topInformation for employees
During the period when the maternity, parental or compassionate care benefits are paid, the employee must not be required to work for the employer to repay the value of these supplements. If work is performed during that period, the employee must declare the money received which may be deducted from his EI benefits.
The employee that will receive a supplement will have to indicate it in his application for maternity, parental or compassionate care benefits.
topAdditional requirements
Additional requirements may be added to the employer’s plan providing it does not affect the two specific conditions. For example, the plan may require that the employee return to work for the employer for a period of at least six months after the maternity, parental or compassionate care benefits have been paid.
For more information on Supplement to EI maternity, parental and compassionate care benefits, please contact your Service Canada Centre.
topOther supplemental plans
More information is available on Supplemental Unemployment Benefit (SUB) plans for employees temporary out of work, on training, ill or injured. Payments originating from these plans will be deducted from EI benefits, unless the plans are approved by HRSDC.