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Impact of EI sickness benefit period increase

Writer's picture: Kris PedersonKris Pederson

Updated: Feb 27, 2023

As the EI sickness benefit period recently increased from 15 to 26 weeks, employers should consider how their disability plan is impacted.


On December 18, 2022, the federal government increased the EI sickness benefit period from 15 to 26 weeks. This means that individuals whose date of disability occurred on or after December 18, 2022 will now receive up to 26 weeks of benefits. All other EI benefits remain unchanged.


Wondering how this could impact your company’s benefits plan? Although every company will be affected differently, employers should consider how this increase impacts the design of their disability plan.

  • If your long-term disability (LTD) coverage integrates with the EI sickness benefit, you may wish to extend the LTD elimination period to match the new EI benefit period. As there’s a one-week waiting period for EI, a 27-week elimination period for LTD would align with the new EI benefit period.

  • You’ll also need to consider the differences between EI, which is taxable, and LTD, which is usually set up as a non-taxable benefit. Additionally, most LTD plans pay higher than the EI max.

  • It is important to be aware that accessing an insurer’s early intervention program available through LTD may mean employees are back to work sooner compared with being on EI.

  • If you currently have a participating short-term disability (STD) plan in addition to long-term disability, you may want to do nothing as increasing the STD benefit to match the new EI period will increase your STD premiums more than the reduction in your LTD rate.

Although employers are not required to make changes to their disability coverage, consider reviewing your plan with your broker to make sure your coverage is right for you and your employees. If you’re looking for a second opinion on your benefits plan, let us know. We’d love to help ensure your benefits plan is aligned to the goals of your business.

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