EI weekly benefits estimation

Generally speaking, you can estimate your EI weekly benefits by multiplying your weekly gross income by 55%, consider your weekly incomes are steady. However, the details of a more accurate calculation is based upon the rule of Variable Best Weeks (VBW). Briefly speaking, it is to take your highest combined weekly gross earnings (min 14 to max 22 weeks) from your last 52 weeks of work, divided by VBW divisor, then multiply by 55% with a maximum cap of current year’s max weekly benefits.

EI benefits are considered taxable income. Federal and provincial tax will be applied to your weekly benefits payment. You will receive a T4E for your CRA declaration.

If your ROE doesn’t show detailed pay period information, meaning a total insurable earning in box 15B of the ROE; and you were not able to provide highest weeks earning for the past 52 weeks for VBW purposes, then EI processing will use the total insurable earning in box 15B (earning from the last 26 weeks) and divided into 26, then multiply by %55.

This is how it calculates:

1. 1. Determining the divisor. The summation of your highest paid weeks based on what you have provided in your VBW form. It ranges from a minimum of 14 weeks to a maximum of 22 weeks in the last 52 weeks based on your regional unemployment rate. For example, Toronto: 6.6% unemployment rate => 21 is the divisor and EI processing with use the summation of those highest 21 weeks of gross income. In an situation where EI applicant worked less than the determined highest combined weeks (e.g. 21), let’s say 18 weeks total, in this case, EI processing will use all the combined income from the 18 weeks and divided by 21 (divisor).
      

      VBW Average weekly earnings  =        (Total highest combined VBW gross income in the past 52 weeks)      .                                                                                                                   (divisor)

   2. Determine your EI weekly benefits once your average weekly earnings has been calculated, EI processing will use this amount to multiply by 55%. You are paid which ever the lowest.
      

      EI weekly benefits   =    (Average VBW  weekly earning)    X    55%

 

Number of Variable Best Weeks to use Regional rate of unemployment Highest combined weeks / divisor 6% or less 22 6.1% to 7% 21 7.1% to 8% 20 8.1% to 9% 19 9.1% to 10% 18 10.1% to 11% 17 11.1% to 12% 16 12.1% to 13% 15 13.1% or more 14

 

The chart below gives you an estimation of your EI weekly benefits based on a full-time earning paid equally all the way until the last week of work.
The minimum weeks you could receive currently is 14 weeks. (Scroll up/down and left/right in the box to the content)

To find out the unemployment rate of your current resident, please consult Service Canada’s “Information on Employment Insurance (EI) Economic Regions” page, click here.





 

Higher EI benefits amount for low-income family claimants

If your net family income is lower than $25,921 per year, that you have children and you or your spouse receives the Canada Child Tax Benefit, you are considered a member of a low-income family. In this circumstances, you will be eligible to receive the EI Family Supplement which is calculated based on your net family income. This additional top-up is calculated automatically through shared information from Canada Revenue Agency.

The Family Supplement rate is calculated based on several factors:

1. 1. 1. Your net family income up to a maximum of $25,921 per year; and
      2. Number of children in the family and their ages

The Family Supplement may increase your benefit rate up to 80% of your average insurable earnings. If you and your spouse claim EI benefits at the same time, only one of you can receive the Family Supplement. It is generally better for the spouse with the lower benefit rate to receive the supplement. If your income level rises, the Family Supplement gradually decreases, so that when the maximum income of $25,921 is reached, no supplement is payable.