You can work while you’re getting EI maternity or parental benefits, and it usually leaves you with more money in total. Service Canada deducts part of what you earn from your benefit rather than stopping it. This page explains the rule, shows worked examples, and covers employer top-ups, reporting and tax. For the benefits themselves, see the EI hub’s maternity and parental benefits guide; other programs are in the benefits guide.
The earnings rule
For maternity, standard parental and extended parental benefits alike:
- You keep 50 cents of EI for every dollar you earn, up to 90% of the weekly insurable earnings your benefit is based on (the "previous weekly earnings" on your benefit statement).
- Earnings above that 90% cap are deducted from your EI dollar for dollar.
- If you work a full week, no EI is paid for that week.
Source: ESDC, Digest of Benefit Entitlement Principles, chapter 12.
The benefit is 55% of your average weekly insurable earnings for maternity benefits, 55% for standard parental benefits and 33% for extended parental benefits, up to a weekly maximum.
Worked example
Someone whose weekly insurable earnings were $1,200 gets $660 a week on maternity or standard parental benefits. Their earnings cap is $1,080 a week.
| Earnings in the week | Deducted | EI paid | Total income |
|---|---|---|---|
| $0 | $0 | $660 | $660 |
| $200 | $100 | $560 | $760 |
| $500 | $250 | $410 | $910 |
| $800 | $400 | $260 | $1,060 |
On extended parental benefits the same person gets $396 a week, so the deduction uses up the benefit sooner: earning $500 leaves $146 of EI, for $646 in total that week.
What counts as earnings
| Income | Counts? |
|---|---|
| Wages from any employer | Yes |
| Self-employment and freelance income (after business expenses) | Yes |
| Tips | Yes |
| Employer top-up that meets the conditions below | No |
| Returns on investments you own, such as interest and dividends | No |
Report earnings for the week you did the work, not the week you were paid.
Employer top-ups
Some employers top up EI during leave. The top-up doesn’t reduce your EI if, added to your weekly EI, it doesn’t take you above your normal weekly earnings, and it isn’t used to reduce other accumulated benefits such as banked sick leave, vacation credits or severance pay. Plans that top up maternity and parental benefits don’t have to be registered with Service Canada. You indicate the top-up on your EI application. Pay for work you do during the leave counts as earnings, and other payments from your employer may too; ask Service Canada if you’re not sure.
Reporting your earnings
Contact Service Canada when you start working or earning money (or, on parental benefits, if you stop caring for your child), and declare all earnings on your reports, including occasional shifts, freelance work and gig income. If you don’t, you risk being overpaid and having to repay benefits.
Tax and the EI repayment
EI maternity and parental benefits are taxable: they’re on your T4E slip, and your job earnings are on a T4. Any tax-exempt benefits are shown separately in box 18 of the T4E and left out of the amount you report. Tax withheld from EI may not cover the tax on your combined income, so you might owe at filing.
The EI benefit repayment that applies to regular benefits at higher incomes doesn’t touch these benefits: Special benefits (maternity, parental, sickness, caregiving and compassionate care) aren't subject to the repayment.
Quebec residents
Quebec parents get maternity and parental benefits from the Quebec Parental Insurance Plan (QPIP) instead of EI, with their own earnings rules. See the QPIP guide.
Related pages
Sources
The figures and rules on this page come from these sources, last checked against them between September 23, 2026 and September 29, 2026. How we check facts.
- Employment and Social Development Canada: EI: Digest of Benefit Entitlement Principles Chapter 12 - Section 2
- Employment and Social Development Canada: Employment Insurance – Working While on Claim
- Government of Canada: EI maternity and parental benefits: What these benefits offer
- Government of Canada: EI sickness benefits: What these benefits offer
- Justice Laws (Canada): Employment Insurance Act