Can you work while on maternity leave in Canada?

Yes. EI maternity benefits (the 15-week biological mother benefit) and parental benefits (35 or 61 weeks shared between parents) are subject to the same Working While on Claim rules as regular EI. You can earn employment income while receiving these benefits. Under the Working While on Claim (WWC) program: for every dollar you earn, your weekly benefit is reduced by $0.50. You keep half of what you earn without losing your full benefit. Earnings above 90% of your weekly insurable earnings are deducted dollar-for-dollar. You must report all earnings on your biweekly EI report.

What is the 90% earnings cap for maternity leave EI?

Your weekly earnings threshold is 90% of your weekly insurable earnings used to calculate your EI benefit. If in any week your earnings exceed this threshold, the excess is deducted dollar-for-dollar from your benefit in addition to the 50% reduction on earnings below the threshold. Most parents working part-time during leave stay well below this threshold. The 90% cap primarily affects someone who returns to their full job while technically still on an EI claim. For standard parental benefits (55% benefit rate), your weekly EI benefit would typically be: if your insurable earnings were $1,200/week, your EI is $660/week, and your 90% threshold is $1,080/week — a meaningful amount that allows substantial part-time earnings.

Can you work while on extended parental benefits?

Yes. Extended (61-week) parental benefits work the same way as standard (35-week) parental benefits under the WWC earning rules. The difference between the two plans: standard parental benefits pay at 55% of weekly insurable earnings; extended parental benefits pay at 33% of weekly insurable earnings. The 90% earnings threshold is the same for both plans (based on your insurable earnings). Under the extended plan, because your weekly benefit is lower (33% vs 55%), the dollar-for-dollar threshold before you earn too much to receive any EI in a given week is reached more easily. However, the same 50% earnings retention rule applies — you are always financially better off working than not.

Do you have to tell your employer you are working part-time during maternity leave?

You are not legally required to notify your employer you are working part-time for another employer during your EI maternity leave — but review your employment contract, as some employers have exclusivity or conflict-of-interest clauses that may restrict outside employment. What you must do: report all earnings to Service Canada via your biweekly EI report. If you return to work for your same employer while on maternity leave (for example, a few shifts per month), this counts as earnings and must be reported. Your employer may or may not expect to be informed, depending on your employment agreement and the nature of the work. Consult an employment lawyer if you are unsure about your specific situation.

Can self-employment income affect maternity leave EI benefits?

Yes — self-employment income is considered earnings under EI rules and must be reported biweekly. Gross self-employment income (before expenses) is reported for EI purposes, not net. This means if you earn $800 gross from freelance work but have $400 in expenses, you still report $800 as earnings for the EI calculation (unlike income tax where you deduct expenses). Self-employed individuals who opted into the EI self-employment benefits program before their leave are subject to the same earning rules as employees. For most occasional freelance work earning modest amounts, the 50% WWC rule applies and you are still better off doing the work.

How does working during maternity leave affect tax?

Both your EI benefits and your part-time employment earnings are taxable income. Your EI is reported on your T4E slip and your employer income on a T4. At tax time, both are added to your net income. Tax is typically withheld on EI at a standard rate — if your part-time income is substantial, you may end up owing tax at filing because EI withholding may not account for the extra income. EI benefits are withheld at 15% federally by default; if your marginal rate is higher due to part-time work, you will owe the difference. Consider asking Service Canada to increase your EI withholding via the Voluntary Tax Deduction form or make installment payments. EI maternity/parental benefits are also subject to the annual EI clawback if net income exceeds approximately $79,000 — though this rarely applies to parents on maternity leave.

Can a self-employed person who opted into EI take maternity leave?

Yes. Self-employed individuals who registered for EI special benefits (maternity, parental, sickness, compassionate care) at least one year before the claim can receive EI maternity and parental benefits. The self-employed EI opt-in requires paying EI premiums on self-employed earnings (the same 1.66% rate). The benefit calculation is based on the lower of your self-employment income or the insurable earnings ceiling ($65,700 in 2025). Once on benefits, the same working-while-on-claim earnings rules apply — you may earn up to 90% of your weekly insurable earnings with the 50% reduction rule on amounts below the cap.

Working While on Maternity Leave Canada: EI Parental Benefits and Optional Earnings

EI maternity and parental benefits are subject to the same Working While on Claim rules as regular EI — part-time work during leave is not only possible, it almost always results in more total income than staying at home.

Maternity vs. parental benefits: a quick recap

Benefit	Who receives	Duration	Weekly rate
EI Maternity	Biological mother only	15 weeks	55% of insurable earnings
EI Parental (Standard)	Any parent (shared)	35 weeks max	55% of insurable earnings
EI Parental (Extended)	Any parent (shared)	61 weeks max	33% of insurable earnings

Both parents can claim parental benefits (shared pool). Maternity is paid only to the birth parent. A family can have maternity (15 weeks) + parental (35 or 61 weeks combined between parents) = up to 76 weeks of combined coverage.

How WWC earnings work during maternity/parental leave

The Working While on Claim rule is identical for maternity and parental benefits as for regular EI:

Your weekly earnings threshold = 90% × your weekly insurable earnings

For every dollar earned below the threshold: EI is reduced by $0.50 (you keep $0.50 of EI) For every dollar earned above the threshold: EI is reduced dollar-for-dollar

Example: Standard parental benefits

Weekly insurable earnings before leave: $1,200/week
Standard parental benefit (55%): $660/week
90% threshold: $1,080/week

Part-time earnings (week)	EI reduction	EI paid	Total income
$0	$0	$660	$660
$200	$100	$560	$760
$500	$250	$410	$910
$800	$400	$260	$1,060
$1,080 (at threshold)	$540	$120	$1,200
$1,200 (above threshold)	$540 + $120	$0	$1,200

Maternity leave specifics: the 15-week window

EI maternity benefits cover the 15 weeks surrounding birth. Most recipients begin 1–2 weeks before the due date and continue through early postpartum recovery.

Working during maternity benefits:

Technically permitted under WWC rules
Practically rare during the final pregnancy weeks and early newborn weeks
More common toward the end of the 15-week period if recovery allows
The same 50%/90% rules apply

Extended parental benefits: the math is tighter

Under extended parental benefits at 33%:

$1,200/week insurable earnings → $396/week benefit (33%)
90% threshold: still $1,080/week

Because the benefit is lower (33% vs 55%), the benefit reaches $0 faster when you earn:

At $792 earned (WWC reduction = $396 = entire benefit): benefit is zero for that week

This means on extended benefits, moderate part-time earnings can wipe out the weekly benefit more quickly. However, you still net more total income than not working.

Reporting income during leave

Report on your biweekly EI report exactly as with regular EI:

Log into MSCA (My Service Canada Account) at msca-masca.canada.ca
Complete your biweekly report: answer all questions and enter gross earnings for each week
Report in the week earnings were earned (not when paid)

Key reporting notes for maternity leave:

If you return to your employer for occasional shifts while on leave: report those wages
If you do freelance/consulting work: report gross billings whether or not deposited yet — use the week the work was performed
If you receive top-up payments from your employer (Supplemental Unemployment Benefit): these are NOT reported as earnings (they are specifically excluded under the SUB plan rules if your employer has a registered SUB plan)

Employer top-up plans (SUB plans)

Many employers top up EI during maternity/parental leave to bring you to 75–100% of your salary. A registered Supplemental Unemployment Benefit (SUB) plan allows the employer to pay this top-up without affecting your EI benefit — as long as the plan is registered with Service Canada. If your employer has a registered SUB plan, the top-up is not employment income for EI purposes.

Tax considerations during maternity leave

Income source	Tax slip	Taxable?
EI maternity/parental benefits	T4E	Yes
Employment earnings from part-time work	T4	Yes
Employer SUB plan top-up	T4	Yes (taxable income, separate from EI)
RRSP withdrawals	T4RSP	Yes

If you work part-time and receive EI, you may be under-withheld. EI withholds at a standard 15% federal rate. Part-time earnings are often withheld at the basic personal amount rate as well. Combined, if total income is $50,000+, you may owe tax at April filing.

Solution: Request extra tax deductions on your EI by completing a Voluntary Tax Deduction form (available through MSCA).