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Employment Insurance (EI) for the Self-Employed
Self-employed persons are able to pay EI premiums on a voluntary basis, in order to qualify for EI special benefits, including
 | maternity benefits (maximum 15 weeks, a claim can start up to 8 weeks before the expected birth date) |
| parental/adoptive benefits (maximum 35 weeks), |
| sickness benefits (maximum 15 weeks), |
| compassionate care benefits (maximum 6 weeks - Federal 2015 Budget increased this to 6 months effective January 1, 2016), and |
| benefits for parents of critically ill children (PCIC, effective June 9, 2013, maximum 35 weeks) |
These EI benefits are taxable.
If a person earns employment income from a corporation in which they are a shareholder controlling more than 40% of the voting shares, they can also participate in this program, and premiums are based on their employment income. No EI premiums would be deducted from their employment income.
In order to pay the premiums on self-employment and other eligible earnings, Schedule 13 would be completed and filed with the income tax return that is filed for the year.
Under the legislation, prior to claiming benefits, self-employed Canadians:
| are required to opt into the program at least one year prior to claiming benefits |
| need to have earned a minimum in self-employed earnings (net income from self-employment) over the preceding calendar year. This amount is indexed annually. |
| can opt out of the EI program at the end of any tax year, as long as they have never claimed benefits. |
| must contribute on self-employed earnings for as long as they are self-employed, if they have claimed benefits. |
| will pay the same EI premium rate as salaried employees. |
| will not pay the employer portion of EI premiums, in recognition of the fact that they cannot collect regular EI benefits. |
The program had a start date of January 2010, so claims could have been made as early as January 2011 with minimum self-employment earnings of $6,000 in 2010. This amount is indexed annually, and is shown in our table of EI Rates and Maximum Insurable Earnings.
Self-employed Quebec residents still receive benefits of maternity leave, paternity leave, parental leave and adoption leave through the Quebec Parental Insurance Program (QPIP) provided through the Quebec government. They are still eligible to take advantage of the EI sickness and compassionate care benefits being offered by the Government of Canada. If they opt into this program, their premium rates will be the same as the rates for employees in Quebec.
TaxTips.ca Resources
EI Rates and Maximum Insurable Earnings (MIE)
Quebec EI Rates and Maximum Insurable Earnings (MIE)
Quebec Parental Insurance Program (QPIP)
Government Resources
Service Canada - Employment Insurance BenefitsService Canada - Employment Insurance Special Benefits for Self-Employed People
Revised: December 11, 2024