As CERB payments are set to end next month, here is what the federal government's new plan for assisting Canadians during COVID-19 means to current and future qualifiers.
The federal government announced on Thursday that the Canada emergency response benefit (CERB) will be extended an additional month and then transition to a modified employment insurance (EI) program.
The changes will come into effect on Sept. 27 and will be in place for one year, with three additional programs proposed for those who do not qualify for EI.
Here's what you need to know about the developments and how you can qualify ahead of the transition.
CERB, the federal income assistance program that has provided more than 8.5 million individuals $2,000 a month since April 6, will end on Sept. 27.
Canadians who have been receiving CERB through Service Canada and are already eligible for EI will automatically transition to EI benefits once CERB ends next month.
Those who are eligible for EI but have been receiving CERB through the Canada Revenue Agency will need to apply through Service Canada.
The federal government has two kinds of EI that apply generally to workers: regular benefits and special benefits.
EI regular benefits provide assistance to employees who lose their jobs involuntarily and are actively looking for work. Those who are eligible will receive a minimum of $400 for up to 26 weeks, or $240 per week for extended parental benefits.
EI special benefits provide assistance to employees or self-employed individuals who are absent from work due to specific life circumstances, including sickness, maternity, parental benefits, as well as compassionate care or family caregivers.
In both cases, individuals must report at least 120 hours of work — approximately 3.5 weeks of full-time hours — in the past 52 weeks, or since their last claim in order to qualify for EI. Normally, the number of hours of insurable employment required to be eligible for EI regular benefits ranges from 420 to 700 hours, and 600 hours for special benefits, depending on the region.
Individuals are required to apply after every two-week period for which they need support and can report that they continue to meet the requirements.
Under the new changes, and to encourage recipients to work, individuals can still earn income from self-employment while receiving the benefit. However, recipients would need to repay $0.50 of the benefit for each dollar earned above $38,000.
Those who don't qualify might be eligible for one of the three new proposed benefits.
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