According to Stats Canada, 1.7 million people in Canada do some sort of gig work. While the percentage of gig workers is continuously on the rise, many are left feeling uncertain if they qualify for employment insurance. Though financial support from the government is available, it does not help that the benefits are constantly evolving.
And let’s be honest…
Browsing through the Government of Canada’s website in search of eligible benefits can get a little confusing. That’s why we’ve done the research for you!
Employment Insurance (EI) is a benefit provided by the government designed to help you financially when you lose your source of income. This could be due to mass layoffs, high unemployment rates, job loss, childcare leave, compassionate care, and many more circumstances.
To qualify for employment insurance, you must be a Canadian citizen or a permanent resident (PR).
Gig workers are considered as independent contractors or freelancers, which is why you don’t get deducted for EI on your paycheques!
[Side Note: Although you are not paying into your EI or CPP, you may still owe taxes to the CRA (Canadian Revenue Agency). Although you could save money by avoiding EI or CPP contribution, it is wise to be aware of self-employment tax when filing your taxes.]
Gig workers are known to have multiple streams of income. If you have contributed towards 120 hours of EI, you will be eligible for EI. Employment insurance is available for any Canadian resident who has lost their job through no fault of their own. Below you will see the benefits available for gig workers, who these benefits are for, the minimum and maximum weeks available, as well as steps on how to apply.
The answer is no!
If you are a gig worker, you are NOT considered self-employed to the government and will not receive self-employed EI benefits. Under Canada.ca, you will find this statement:
Under Canada.ca, it is clearly stated that people are self-employed if they operate their “own business or control more than 40% of their corporation’s voting shares”.
This shows that, as a gig worker, you will not be qualified for self-employed EI.
As an independent contractor and multiple income earner, you should apply for Employment Insurance Benefits if you have accumulated at least 120 hours of insurable work.
For example, if Bob has a job at Grocery Happy, he gets paid in traditional income. Bob also works for Uber as his side hustle for extra money.
Bob will be eligible for employment insurance benefits if Bob works for Grocery Happy for at least 120 hours.
The table below shows the 4 most common benefits for gig workers.
It is important to mention – apply for the appropriate benefit as soon as you feel the need. If you delay in applying past 4 weeks, you may lose out on the opportunity to claim your benefits.
| Benefit Name | Who is this benefit for? | Minimum & Maximum weeks available | How much you could receive – Minimum & Maximum before taxes |
| Regular | If you have lost your job through no fault of your own. | Minimum: 26 weeks (approximately 6 months)
Maximum: 45 weeks (approximately 10 months) Depending on unemployment rate in your region |
Minimum: $500/week
Maximum: $573/week
|
| Sickness | If you are unable to work because you are sick, injured or quarantined. | Minimum: Depends on how long you’re unable to work for medical reasons.
Maximum: 15 weeks (approximately 3 and a half months) |
Minimum: $500/week
Maximum: $573/week
|
| Maternity and parental | If you are pregnant, have recently given birth, caring for a newborn, or adopting a child. | 1. Maternal (person giving birth)
Maximum: 15 weeks Maximum: 40 weeks 3. Extended parental Maximum: 69 weeks
|
1. Maternity
Minimum: $500/week Maximum: $573/week 2. Standard parental Minimum: $500/week Maximum: $573/week 3. Extended parental Minimum: $300/week Maximum: $344/week
|
| Caregiving and leave | If you are providing care to someone who is severely sick, injured or needing end-of-life-care | 1. Family Caregiver for children
Maximum: 35 weeks 2. Family Caregiver for adults Maximum: 15 weeks 3. Compassionate care Maximum: 26 weeks |
Minimum: $500/week
Maximum: $573/week |
Take note: Insured hours are the number of hours worked by a worker proven through the employer.
From Canada.ca:
Insurable earnings include most of the different types of compensation from employment, such as wages, tips, bonuses and commissions. The Canada Revenue Agency determines what types of earnings are insurable.
To view what types of earning are insurable, click here.
The 4 benefits are designed to be quite similar in nature. They have complementary eligibility criteria with very similar ranges of money available to you and similar steps on “how to apply.” The details below show the exact same criteria and information for all 4 benefits. If there are differences in any of the requirements, they will be displayed under the requisite benefit.
Eligibility:
To prove eligibility, you will be required to fill out bi-weekly reports by internet or telephone and update the government on any changes that occurs between weeks in terms of employment.
How much money you could receive:
How to apply:
This access code is essentially your employment insurance number and it will be used to fill out your biweekly reports. The access code will be sent to you via mail and the document will look like this:
Once you have completed the above steps, please click here. After reading the privacy notice statement click “Start my application”.
Once you have completed the above steps, please click here. After reading the privacy notice statement click “Start my application”.
Your choice will display how many weeks you want to receive the benefit for and how much you will receive.
Once you have completed the above steps, please click here. After reading the privacy notice statement click “Start my application”.
Once you have completed the above steps, please click here. After reading the privacy notice statement click “Start my application”.
Those are the 4 main employment insurance benefits you can receive as a Canadian gig worker. There are 2 more benefits that are available for Canadians which are:
What’s next?
Gain more confidence in your money saving abilities, get smart about the value of investing and realize the power of compounded interest. Getting into the habit of growing an emergency fund is an important one. Learn more financial tips for freelancers with Moves!
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