How Much Can I Earn While on EI? The Working While on Claim Rules

You can work while collecting Employment Insurance (EI). The Working While on Claim rules reduce your EI by part of what you earn, so working almost always leaves you with more money than not working. This page covers the rule, examples, what counts as earnings, and how to report.

The rule

• 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, Working While on Claim. The rules apply to any type of EI benefit, not only regular benefits.

Example

Someone whose benefit is based on $800 a week of insurable earnings gets 55% of that, $440 a week. Their cap is $720 (90% of $800).

At the cap, half of $720 is deducted; every dollar above it comes off in full, so the EI runs out exactly at $800, the earnings the benefit is based on. The ESDC page gives similar examples: a $275 benefit with $300 of part-time earnings becomes $125 of EI plus $300 of wages.

How weeks are counted

• Any week in which $1 or more of benefits is paid counts as one of your weeks, even if the payment was reduced.
• A week in which your earnings reduce the payment to $0 doesn’t use up a week, so those weeks can be paid later.
• But you only have 52 weeks from the start of your claim (the benefit period) to use your weeks. Weeks you don’t use in that time are lost.

Source: Digest of Benefit Entitlement Principles, chapter 1, section 9.

What counts as earnings

Source: Service Canada, EI and the various types of earnings.

Severance and other separation money normally delays the start of benefits. That was suspended for claims or allocations that start between March 30, 2025 and October 10, 2026. Self-employment and rental income have their own pages: self-employed while on EI and EI and rental income.

How to report

• Report every 2 weeks, online through My Service Canada Account or by phone at 1-800-531-7555.
• Report employment earnings gross (before deductions), for the week you did the work, not the week you were paid. Self-employment earnings are your income minus operating expenses (not capital purchases); see self-employed while on EI.
• Report all of it, including small amounts and cash. Unreported earnings create an overpayment you must repay, and can lead to penalties.
• If you made a mistake on a past report, tell Service Canada at 1-800-206-7218 as soon as you notice.

Taxes and repayment

EI and your earnings are both taxable, and the tax withheld from EI may not cover the extra income. If your net income for the year is above $86,125 (2026), you may also have to repay part of your regular EI when you file; see how much can I earn on EI before repaying.

Related pages

• How EI works
• EI sickness benefits
• Why did my EI payment stop
• EI calculator