Why Is My EI Less Than Expected in Canada?

You applied for Employment Insurance and your first payment — or your payment amount — is less than you expected. This is one of the most common complaints Canadians have with EI, and in virtually every case the cause is traceable to one of a handful of specific rules. Here is how EI payment amounts are calculated and why yours may be lower.

How EI benefit amounts are calculated

Before you can understand why your payment is low, you need to understand how it is calculated.

The formula:

Weekly EI Benefit = 55% × Average Insurable Weekly Earnings

But the “average” is not simply your last paycheque divided by weeks worked. It uses your best weeks — a specific number of your highest-earning weeks from the 52 weeks before your claim.

The number of best weeks used is determined by the regional unemployment rate in your Economic Region at the time your claim is established:

Example: If your region has 7.5% unemployment, EI uses your best 20 weeks. If your 20 highest-earning weeks averaged $900/week, your benefit is 55% × $900 = $495/week.

The maximum insurable amount for 2026 is $65,700/year ($1,263/week). The maximum weekly benefit is therefore $695.

Reason 1: Your earnings average is lower than your final salary

This is the most common reason for a lower-than-expected benefit.

If you recently got a raise, recently moved to a full-time role from part-time, or had several low-income weeks in the past year due to illness, vacation without pay, or seasonal gaps — those weeks pull down your average.

Example:

• You just started a full-time $80,000/year job 3 months ago
• Prior to that, you were part-time at $25,000/year
• Your best 22 weeks are split between both periods
• Your average insurable weekly earnings will be far below what your final job paid

Reason 2: The 1-week waiting period was not paid

All EI claims in Canada start with a 1-week unpaid waiting period. You are not eligible for benefits during that first week, and no payment is issued. If your first payment was lower than expected, it may simply reflect that the claim started at week 2.

Reason 3: You are a repeat claimant (lower benefit rate applies)

Canada’s EI system applies a reduced benefit rate for repeat claimants under certain conditions. If in the past 5 years you:

1. Collected EI regular benefits (not maternity, parental, or illness), and
2. Accumulated 20 or more weeks of regular EI usage in that 5-year window

Then your benefit rate may be reduced from 55% to 33% on the current claim.

This reduced rate is called the Variable Best Weeks enhanced rule and was controversial when introduced. Check your Notice of Determination letter from Service Canada — it will show your benefit rate.

Reason 4: You have earnings or income being deducted

EI has a Working While on Claim rule. You can earn up to $75/week or 40% of your weekly benefit (whichever is higher) without losing any EI. Beyond that threshold, EI is reduced dollar-for-dollar.

Other income also reduces EI or delays it:

• Severance, termination pay, or vacation pay — Applied against weeks, effectively delaying the start of your benefits
• Pension income from the same employer — Deducted from EI benefits in some circumstances
• Self-employment income — Treated as earnings and can reduce your weekly payment

Reason 5: Your claim was back-dated and some weeks already elapsed

If your employment ended but you delayed applying for EI, your claim may have been back-dated to the date of separation. The benefit weeks already elapsed are lost — your total entitlement is reduced. EI best practice is to apply within 4 weeks of your last day of work.

Reason 6: Taxes and deductions are withheld

Your EI payment is taxable income in Canada. Service Canada withholds federal and provincial income tax based on an annualized projection of your EI payments. If you receive a full year of EI at the maximum, you may owe taxes at a higher bracket.

The amount withheld depends on your province and any additional deductions (e.g., if you asked Service Canada to withhold more tax). Your net payment will be lower than the gross weekly benefit as a result.

You can request that Service Canada adjust the amount withheld — call 1-800-206-7218.

Reason 7: You had insufficient insurable hours

To qualify for EI, you need between 420 and 700 insurable hours depending on your regional unemployment rate. If you barely cleared the minimum, your qualifying earnings base may be thin, resulting in a lower benefit.

Also, certain income is not insurable for EI purposes:

• Self-employment income (unless opted into the EI Self-Employment program)
• Tips that were not reported by the employer
• Income from a business you control
• Income that exceeds the maximum insurable ceiling ($65,700)

What to do if you believe your EI amount is wrong

1. Review your My Service Canada Account (MSCA) at canada.ca — Your notice of determination shows the calculation details including your best weeks, average earnings, and benefit rate.
2. Request a reconsideration — If you disagree with the calculation, you have 30 days from your Notice of Determination to request a formal reconsideration at no cost.
3. Call Service Canada at 1-800-206-7218 — Ask them to walk through the exact best-week calculation.
4. Check your ROE (Record of Employment) — Errors on the ROE filed by your employer can lead to incorrect EI calculations. Ask your employer to file an amended ROE if needed.

EI benefit amounts by scenario (2026)

Related resources

• How Much Can I Earn While on EI? — Working while on claim rules
• EI Maternity and Parental Benefits Canada — If your EI is for parental leave
• Why Is My CPP Less Than Expected? — Similar calculation confusion with CPP
• Government Benefits Hub — All federal benefit programs in one place