| Action |
Why |
Timeline |
| Apply for EI |
Don’t delay — 28-day processing |
Day 1 |
| Request ROE from employer |
Required for EI |
Day 1 |
| Review severance package |
Understand what you’re owed |
Day 1-3 |
| Create emergency budget |
Reduce all non-essential spending |
Day 1-3 |
| Review health benefits |
Know when coverage ends |
Day 1-3 |
| Notify any co-signers |
If you have co-signed loans |
Day 3-7 |
Understanding Your Severance
| Factor |
Details |
| Statutory minimum |
1 week per year of service (Ontario ESA) |
| Common law entitlement |
Often 1 month per year of service (not automatic) |
| Taxation |
Severance is taxable income |
| EI waiting period |
Severance may delay EI start date |
| Negotiation |
You can often negotiate more |
Consider consulting an employment lawyer if offered less than expected.
EI Benefits Summary
| Feature |
Amount |
| Benefit rate |
55% of average earnings |
| Maximum weekly |
$668 |
| Duration |
14-45 weeks (depends on hours, regional unemployment) |
| Waiting period |
1 week (unpaid) |
Full EI application guide →
Emergency Budget Template
| Category |
Normal Budget |
Emergency Budget |
| Housing |
$1,500 |
$1,500 (can’t easily change) |
| Food |
$500 |
$300 (reduce eating out) |
| Transportation |
$400 |
$150 (reduce driving, pause lease) |
| Subscriptions |
$100 |
$20 (cancel non-essential) |
| Entertainment |
$200 |
$50 |
| Misc |
$300 |
$100 |
| Total |
$3,000 |
$2,120 |
Expenses You Can Pause or Reduce
| Expense |
Action |
| Gym membership |
Pause or cancel |
| Streaming services |
Keep 1, cancel rest |
| Cell phone |
Switch to cheaper plan |
| Car insurance |
Lower coverage if old vehicle |
| Subscriptions |
Cancel all non-essential |
| Eating out |
Meal prep at home |
| Shopping |
Complete freeze |
If You Can’t Pay Bills
| Bill Type |
Options |
| Rent/Mortgage |
Contact landlord/lender immediately; ask for deferral |
| Credit cards |
Call to request hardship program, lower payments |
| Utilities |
Most have hardship programs; apply before missing payments |
| Car payments |
Contact lender before missing payment |
| Student loans |
Apply for RAP (Repayment Assistance Plan) |
| Phone/Internet |
Downgrade plan or switch providers |
Financial Resources for Unemployed Canadians
| Resource |
What It Provides |
| EI (Employment Insurance) |
55% income replacement |
| Provincial social assistance |
Ontario Works, BC Employment Assistance, etc. |
| Food banks |
Free groceries |
| Utility assistance programs |
Help with hydro, gas bills |
| Community organizations |
Emergency financial assistance |
| 211 (dial 2-1-1) |
Connects you to local resources |
Protecting Your Credit
| Action |
Why |
| Contact creditors before missing payments |
May offer hardship programs |
| Pay minimum on credit cards |
Keeps accounts current |
| Don’t max out credit cards |
High utilization hurts score |
| Avoid payday loans |
Extremely high interest destroys finances |
| Monitor your credit |
Check for errors, track score |
Should You Withdraw from RRSP?
| Consideration |
Details |
| Tax hit |
10-30% withholding immediately, plus tax at year-end |
| Lost room |
Contribution room is gone forever |
| Lower income year |
Tax rate may be lower if unemployed all year |
| Last resort |
After emergency fund, EI, other options exhausted |
Better order: Emergency fund → EI → Credit line → TFSA → RRSP (last resort)