Change to the waiting period for Employment Insurance
Last year, the federal government unveiled a number of changes to Canada’s Employment Insurance (EI) program in its initial budget, including a shorter waiting period for EI benefits. The change has been into effect since January 1, 2017.
In 2016, benefits were paid for 17 weeks, including a two-week waiting period. Since January 1, 2017, the total benefit payment period is now 16 weeks — a one-week waiting period and 15 weeks of payments.
The change impacts disability insurance contracts that do not have short-term disability insurance but that do have long-term disability insurance with a 17-week waiting period. Ideally, these contracts have to be changed to 16 weeks in the course of the year. Depending on the carrier, that will increase the cost of LTD coverage anywhere between 0 and 8%.