Working While on EI: How Earnings Affect Your Payment

Working while on EI can change the amount paid for a week. You must still report work and earnings through the claim process. First, record what you earned and when you worked. Then check the Working While on Claim rules instead of assuming that every dollar of wages either stops EI entirely or has no effect at all.

How does the basic deduction work?

The Working While on Claim guidance describes the standard rule. EI is reduced by 50 cents for each dollar earned, up to the threshold tied to 90% of previous weekly earnings. Earnings above that threshold reduce benefits dollar for dollar. The full calculation depends on the claim details.

A full week of work has a separate effect: the guidance says EI is not payable for that week regardless of the amount earned. Therefore, the earnings calculation alone is not a complete test. Record the days and hours as well as the wages.

What does a simple example show?

Consider an example with a weekly EI rate of $440 and $200 in part-time earnings. Assume the earnings are below the relevant threshold and the usual deduction applies. Half of $200 is $100. Subtracting $100 from $440 leaves $340 in EI. The combined gross total in this example is $540.

This is an illustration, not a quote for your claim. It does not account for every adjustment, tax withholding or special situation. Use your actual benefit rate and earnings. Also check whether an exception applies, such as the treatment of payments under certain employer sick leave plans.

What should you record for each week?

• The days and hours you worked.
• The employer and type of work.
• Gross earnings for the relevant period.
• Any other payment the report asks about.
• The payslip or record supporting the figures.

Keep the work week separate from the bank deposit date. A paycheque can cover work from an earlier period. If you report only the amount that entered your account this week, you may assign earnings to the wrong week or overlook deductions already taken from gross pay.

EI Report Online: How to Report Hours and Earnings

Do you need a new application for this rule?

The official guidance says you do not need to apply separately for Working While on Claim if you are already receiving EI. Continue declaring earnings on your reports. For the reporting steps themselves, see our guide to EI reports, hours and earnings.

Next, compare the report confirmation with your work record. If you notice a mistake, use the proper correction route promptly. Do not try to fix one week's incorrect earnings by changing a later week's figures. That creates a second mismatch rather than a clear correction.

What if you start a new job?

Record the start date and whether the work is part-time or a full week. Continue to follow the claim's reporting instructions. A new job offer and the first week actually worked are different events. Keep the contract and work schedule so you can explain that timing if needed.

Finally, check the resulting payment details in your account. A smaller payment may reflect reported earnings, but another adjustment could also be involved. Compare the dates and reasons before assuming that every change is the part-time deduction. If the result does not match your records, give Service Canada the week, figures and report details you want checked.

On regular EI, you also need to keep meeting the claim's ongoing conditions, including availability for work when required. Part-time wages do not replace those tests. For example, a person can report pay correctly yet still need to answer a separate question about availability. Keep those answers factual and follow the ongoing EI instructions about work, training and absences.