Regulations Amending the Employment Insurance Regulations: SOR/2026-64

Canada Gazette, Part II, Volume 160, Number 7

Registration
SOR/2026-64 March 30, 2026

EMPLOYMENT INSURANCE ACT

P.C. 2026-301 March 30, 2026

The Canada Employment Insurance Commission makes the annexed Regulations Amending the Employment Insurance Regulations under section 109 of the Employment Insurance Act ^{footnote a}.

March 20, 2026

Her Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Social Development, under section 109 of the Employment Insurance Act ^{footnote a}, approves the annexed Regulations Amending the Employment Insurance Regulations, made by the Canada Employment Insurance Commission.

Regulations Amending the Employment Insurance Regulations

Amendments

1 Section 77.996 of the Employment Insurance Regulations ^{footnote 1} is replaced by the following:

77.996 The Commission may waive the waiting period in respect of any benefit period that begins during the period beginning on March 30, 2025 and ending on October 10, 2026.

2 Paragraphs 77.997(a) and (b) of the Regulations are replaced by the following:

• (a) the claimant’s benefit period begins during the period beginning on March 30, 2025 and ending on October 10, 2026; or
• (b) those earnings would, but for this section, be allocated under subsections 36(9) to (11) to a number of weeks the first week of which falls within the period beginning on March 30, 2025 and ending on October 10, 2026.

3 (1) Subsection 77.999(2) of the Regulations is replaced by the following:

(2) A benefit period that is established in accordance with section 9 of the Act, that begins during the period beginning on June 15, 2025 and ending on October 10, 2026 and that has not ended in accordance with paragraph 10(8)(d) of the Act before the day on which this section comes into force is extended by 20 weeks if the claimant is a long-tenured worker and has been paid at least one week of regular benefits or benefits by virtue of section 25 of the Act in that benefit period.

(2) The portion of subsection 77.999(3) of the Regulations before the adapted version of subsection 10(14) of the Act is replaced by the following:

(3) In respect of any benefit period that begins during the period beginning on June 15, 2025 and ending on October 10, 2026, subsection 10(14) of the Act is adapted as follows:

Coming into Force

4 These Regulations come into force on the day on which they are registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Executive summary

Issues

In March 2025, in anticipation of significant job losses in a tariff-impacted economy, Employment Insurance (EI) Pilot Project No. 24 was introduced (SOR/2025-115) to test the outcomes of applying three temporary EI measures to respond to major changes in economic conditions: waiving the one-week waiting period; suspending the treatment of monies paid on separation; and adjusting the EI regional unemployment rates upwards. On October 11, 2025, the measures to waive the waiting period and suspend the treatment of monies paid on separation were extended for six months; the measure adjusting the unemployment rates expired, and a new temporary measure providing an additional 20 weeks of benefit entitlement to long-tenured workers was introduced.^{footnote 2} The three temporary measures currently in place will end on April 11, 2026.

To date, evidence shows that the measures introduced under Pilot Project No. 24 have improved timely access to income support; however, the labour market uncertainty that warranted the introduction of these measures remains due to ongoing tariffs and threats of further tariffs. There continues to be a risk of economic disruptions and considerable job losses in a tariff-impacted economy in 2026.^{footnote 3} Without an extension of the temporary measures, workers will not have the same level of access to benefits despite the persistent labour market uncertainty.

Background

Foreign tariffs have already significantly affected Canadian industries reliant on trade with the U.S., including lumber, steel and aluminum, automobiles and agriculture. Given the potential for widespread layoffs due to tariffs, Pilot Project No. 24 was established to test the outcomes of temporarily introducing changes to the EI rules to respond to the employment impacts of major changes in economic conditions. The three temporary measures currently in place under the pilot project are listed below.

Waiving the one-week EI waiting period

This measure allows claimants to receive benefits for the first week of their EI claim, softening the shock of an income drop. This measure applies to claims established between March 30, 2025, and April 11, 2026.

The results of this measure have been positive. As of February 7, 2026, 1.37 million regular benefit claims (and 551 000 special benefit claims) established have had their waiting period waived, resulting in these claimants receiving additional income support at the start of their claim and improving their income stability. The full impact of this temporary measure will not be known until claimants end their claim. Those who do not exhaust their weeks of EI entitlement will be paid an extra week of benefits that they would not otherwise have been paid without this temporary measure being in place.

Suspending the treatment of monies paid on separation

This measure allows claimants to receive EI benefits after a job separation without having to first exhaust separation payments received from the employer (e.g. severance payments), meaning they will not experience a delay or reduction in their benefits. The measure applies to claims established, or allocations commencing, between March 30, 2025, and April 11, 2026.

While it is too early to evaluate the full impact of suspending the treatment of monies on separation, it is estimated that at least 130 000 claims will have benefited from this measure since March 30, 2025. It is possible the actual number of benefiting claims could be even higher because tariff-impacted sectors tend to have slightly higher percentages of claimants with monies on separation. In addition, workers who may not have claimed EI due to their separation monies in the past may now be incentivized to establish a claim with the knowledge that they can receive benefits immediately.

Providing 20 additional weeks of regular benefits for long-tenured workers

This measure provides long-tenured workers (LTW) [defined as claimants who have paid at least 30% of the maximum annual EI contribution in 7 of the past 10 years and who used 35 weeks or less of regular or fishing benefits in the last 3 years] with 20 additional weeks of regular benefits up to a maximum of 65 weeks of regular benefits. This measure ensures that these claimants, who are expected to require more time to find new employment or want to re-skill or take advantage of training opportunities, have access to the additional weeks of income support they need. This measure applies retrospectively to claims starting on or after June 15, 2025, until April 11, 2026.

Roughly 30% of regular benefit claims (over 300 000 claims) established since June 15, 2025, meet the definition of LTW and thus would have had the 20 extra weeks of benefit entitlement automatically added to their claim. The additional weeks are added to their original weeks of entitlement. For example, a claimant who was originally entitled to 30 weeks of benefits under the normal program rules will have a total entitlement of 50 weeks of benefits with the extra 20 weeks. Assuming they remain unemployed and continue to be eligible to receive EI benefits, these extra 20 weeks start being paid once a claimant has used up all of their original weeks of benefits. As of March 8, 2026, 11 215 claims have been paid at least one of 20 extra weeks of regular benefits due to the temporary measure. The full impact of this measure is expected to be seen in the coming months, after more claimants reach the end of their original entitlement in weeks of benefits and are expected to benefit from the extra weeks.

Rationale for extension

The proposed six-month extension of the three existing EI measures under Pilot Project No. 24 ensures the readiness of the EI program to continue to support workers as the tariff situation persists.

The economic landscape due to tariffs has shifted several times since Pilot Project No. 24 was first introduced back in March 2025. Instead of a worst-case 25% general tariff scenario, what followed instead was a series of targeted tariffs on certain sectors, including 25% tariffs on Canadian automobiles and auto parts, 50% tariffs on Canadian steel, aluminum and copper, 35.19% duties on softwood lumber, and, as of August 1, 2025, 35% tariffs on all Canadian goods that are not compliant with the Canada–United States–Mexico Agreement (CUSMA). There continue to be threats of further escalation by the United States, including possible 100% tariffs on all Canadian-made goods, 100% tariffs on semiconductors and 200% tariffs on pharmaceuticals.

In addition to these, several tariff measures were implemented in 2025 by China, including 25% tariffs on select Canadian seafood products such as lobster, 100% tariffs on canola meal and canola oil, and the announcement in August 2025 of a 75.8% duty on Canadian canola seed. However, following a trade agreement reached on January 16, 2026, China lifted its tariffs on canola meal, peas and seafood, and reduced its canola seed tariffs to 15% effective March 1, 2026.

EI claims applications have been rising during this time, with increases of 4.8% (all benefit types) between February 2025 and February 2026 compared to the same period the previous year. EI regular benefit claims established between February and December 2025 have increased by 8% (regular benefits only)^{footnote 4} compared to the same period in the previous year. EI claims overall have increased by roughly 159 000, of which 71% stemmed from involuntary job losses (i.e. regular and fishing benefits).^{footnote 5} Regular benefits claimants have also been staying on claim longer. For claims established between February and December 2025, the year-over-year average number of weeks paid increased by 12% compared to the same period in 2024.

The rise in regular claims is disproportionally higher in tariff-impacted sectors, such as the automotive sector (22% increase in claims paid in 2025) and steel (76% increase). EI regions with high concentrations of workers in targeted sectors are also seeing significant increases in claims. The EI region of Windsor, for example, saw a 50% increase in EI regular claims established during the period between February to December 2025, compared to the previous year, while the EI region of Oshawa saw a 21.4% increase.

The recent increase in EI claims, driven by rising job losses, reflects the ongoing uncertainty facing employers in a tariff-impacted economy. Canada’s national unemployment rate has been slowly rising since the beginning of 2025, reaching a high of 7.1% in August and then dropping to 6.5% in January 2026. However, the decline in January was caused by workers leaving the labour force rather than an increase in overall employment, suggesting a need for continued stabilization of the economy through an enhanced EI program.

Unemployed workers continue to face difficulties finding employment. Out of the 1.46 million unemployed workers in January 2026, 25.4% were long-term unemployed workers (27 weeks or more unemployed), compared to a rate of 22.8% for January 2025 and 16.8% for January 2024.

When Pilot Project No. 24 was introduced in March 2025, the increase in claims for EI regular benefits as a result of tariff-related job losses was forecast to be 415 000 in the following year based on the “worst-case” tariff scenario expected at that time. In July 2025, this forecast was reduced to 118 000 given that the tariffs that were ultimately imposed were more targeted than previously expected.^{footnote 6} These forecasts were developed based on a worst-case scenario that ultimately did not materialize, namely the assumption of 25% broad-based tariffs on all Canadian goods. Although the revised estimate is now outdated, it remains useful for understanding how expectations evolved as the tariff environment shifted.

The tariff situation remains unpredictable, with an ongoing risk of considerable job losses. Based on most recent labour market projections, it is expected that the EI program will see an incremental increase in 43 000 regular claims due to tariffs in 2026–2027. This number represents the number of expected claims due to tariff-related layoffs and was used to estimate the costs of these measures and the number of claimants that could benefit.

Despite the prevailing air of uncertainty, preliminary data collected to date shows that the three tariff response measures under Pilot Project no. 24 have provided increased income support for workers who lost their jobs during these times of labour market disruptions. A six-month extension of these measures will ensure that the EI program can continue to provide enhanced EI income support for tariff-impacted workers vulnerable to income shocks and better support job transitions. Given that EI pilot projects can have a maximum duration of three years, this mechanism is flexible to allow for further extension or new EI temporary measures to be added beyond October 2026 if necessary.

Objective

The objective of the Regulations Amending the Employment Insurance Regulations (the Regulations) is to allow for continued testing of the outcomes of waiving the one-week waiting period, suspending the treatment of rules on monies paid on separation, and providing 20 additional weeks of EI regular benefits to long-tenured workers. In extending these measures, this will also allow the EI program to remain flexible to respond to the employment impacts of major changes in economic conditions, and in doing so, to continue to provide reliable and timely support to workers affected by tariffs.

Description

The Regulations amend the Employment Insurance Regulations to replace the date of April 11, 2026, in section 77.996, paragraphs 77.997(a) and (b) and subsections 77.999(2) and (3) with the date of October 10, 2026. This extends the duration of the three temporary measures under Pilot Project No. 24:

• Waiving the one-week waiting period so that claimants are able to receive benefits for the first week of their EI claim, softening the shock of an income drop. This does not increase the speed of processing or the maximum amount of benefits to which claimants are entitled during their claim. Regular, special, and fishing claimants are eligible for this measure. This measure will apply to claims with a benefit period that begins on or after March 30, 2025, but no later than October 10, 2026.
• Simplifying the treatment of monies on separation so that earnings paid or payable by reason of a lay-off or separation from employment does not constitute earnings for EI benefit purposes. As a result, claimants receiving benefits will not experience a delay in the payment of EI benefits, or a reduction of their benefits, if they receive monies on separation. This measure will apply to claims that begin on or after March 30, 2025, but no later than October 10, 2026, or to claims where the first week that monies on separation would normally be applied falls during this period.
• Providing 20 extra weeks of EI regular benefits benefit entitlement, up to a maximum entitlement of 65 weeks, to EI regular benefit claimants who meet the EI program’s definition of a long-tenured worker (LTW). This measure will apply to claims established between June 15, 2025, and October 10, 2026.

Regulatory development

Consultation

Pilot Project No. 24 was informed by stakeholders’ feedback during ministerial roundtables in January 2025 with employers, unions and labour groups. It was also informed by two years of extensive consultation on EI modernization in 2021 and 2022. A key takeaway from these consultations was the need for the EI program to be responsive in times of economic downturns.

Since the regulatory amendments need to be put in place expeditiously to continue to provide reliable and timely support to workers, no additional consultations were undertaken. Since the amendments will not have any negative impacts on claimants and no additional burden on businesses, the amendments were exempted from prepublication in the Canada Gazette, Part I.

Indigenous engagement, consultation and modern treaty obligations

In accordance with the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, an assessment of modern treaty implications was conducted specific to these Regulations. There are no implications for modern treaty obligations or Indigenous engagement in the Regulations.

Instrument choice

The Employment Insurance Act provides the Canada Employment Insurance Commission with the authority to make regulations to introduce pilot projects of up to three years. Regulatory amendment is the only mechanism to make adjustments to Pilot Project No. 24.

Regulatory analysis

Benefits and costs

The Regulations amend Pilot Project No. 24, extending by six months the time during which the EI waiting period is waived, the treatment of monies paid or payable on separation is suspended, and long-tenured workers receive 20 additional weeks of regular benefit entitlement. These amendments allow workers to benefit from increased EI support, and the expected additional EI benefits paid constitute the primary benefit of the Regulations. The economic stimulus provided by the additional income support is an indirect benefit and, therefore, is described in the qualitative and quantitative impacts section below. Due to these Regulations being expedited, consultations were not undertaken as part of this cost-benefit analysis.

The additional EI benefits paid out because of the Regulations will result in program costs to the EI Operating Account. These increased costs are described and monetized in the “Costs” section below.

Program costs (additional EI benefits paid to claimants) were estimated based on EI administrative data from relevant historical periods (i.e. those with similar economic conditions). The basis of program costs is a function of claim volumes that will benefit from the measures (prorating the expected impact on claim volumes resulting from tariff-related job losses), the average number of weeks of benefits that are estimated to be used, and the average estimated weekly rate of benefits paid. For each measure, targeted populations were identified, and key indicators, including exhaustion rates, take-up rates and average weekly benefit amounts, were used to estimate costs. These trends were assumed to remain stable throughout the period each measure is in place. For example, the number of affected claims is expected to be evenly distributed throughout the period each measure is in effect, and average claim durations and weekly benefits paid are assumed to stay constant. Some measures (i.e. waiving the waiting period and the measure suspending the treatment of monies on separation) are estimated to result in new claims to the EI program (49 657). In addition, each measure could result in increased generosity of benefits for existing claims by providing additional weeks of benefits.

When Pilot Project No. 24 was introduced in March 2025, the temporary measures were originally costed based on the “worst-case” assumption of a 25% economy-wide U.S. tariff, resulting in an assumed 415 000 incremental EI regular benefit claims for 2025–2026 (from a baseline of roughly 1.37 million claims). Since then, labour market projections have been adjusted to reflect the actual impact of tariffs.

The number of claimants who could benefit from the EI temporary measures and their costs in the analysis that follows assumes a more modest increase of 43 000 regular benefit claims due to tariffs in 2026–2027. This number is estimated based on unemployment projections over 2026–2027. Nevertheless, uncertainty of the tariff situation makes forecasting labour market impacts challenging, and while these estimations reflect one potential scenario, actual costs will depend on the tariff-related job losses that materialize. On the basis of total program costs, Employment and Social Development Canada (ESDC) calculates the estimated increase in the premium rate that would result in the EI Operating Account being in balance after seven years. This incremental change in premiums reflects how the costs are shared between employees and employers, with the EI premium rate calculated for employees and then set at 1.4 times that rate for employers.

The benefits and costs of the Regulations are assumed to occur over three fiscal years. Claims that will benefit from the Regulations include claims that will be established up to October 2026. While a claimant’s benefit period is typically 52 weeks, it can be extended to up to 104 weeks in some situations.

A discount rate of 7% is used to calculate present values (PV).

Some numbers used in the “Benefits and costs” section are rounded. As a result, totals may not equal the actual value due to rounding.

Baseline scenario

The baseline reflects the scenario that would exist in the absence of the Regulations. The measures that waive the waiting period, suspend the treatment of monies paid on separation and the measure providing extra weeks of regular benefits to long-tenured workers would end April 11, 2026. The baseline scenario captures claims established between April 12, 2026, to October 10, 2026.

Under this scenario, claims established on or after April 12, 2026, would be subject to the EI program’s standard rules:

• Claimants would have to serve a one-week waiting period during which benefits are not paid;
• Claimants would have monies paid or payable upon separation deducted from their weekly EI benefits at the rate of their normal weekly earnings from that employment, delaying or reducing the payment of EI benefits; and,
• Claimants who are long-tenured workers would be entitled to the standard number of weeks of regular benefits, that is, between 14 and 45 weeks of benefits.

Total claim volumes for EI regular benefits over the baseline scenario are expected to be about 1.41 million for 2026–2027, while tariffs are in place, higher than the historical average of about 1.37 million claims per year. Tariff-related job losses estimated from March 2025 to October 2025 suggest that the EI program could experience an increase of 43 000 regular claims over the fiscal year 2026–2027.^{footnote 7}

Regulatory scenario

Under the regulatory scenario, the measures that waive the waiting period, suspend the treatment of monies paid on separation, and provide an additional 20 weeks of EI regular benefit entitlement to long-tenured workers will be all extended until October 10, 2026. The regulatory scenario captures the period from when the regulation is changed to the end date of the temporary measures (i.e. April 12, 2026, to October 10, 2026).

Under this scenario

• claims established between April 12, 2026, and October 10, 2026, are exempted from serving the one-week waiting period;
• claims established (or with allocations that would begin) between April 12, 2026, and October 10, 2026, do not have their monies on separation allocated for the purposes of EI benefits; and
• claims established between April 12, 2026, and October 10, 2026, by long-tenured workers have 34 to 65 weeks of regular benefit entitlement, depending on the unemployment rate in their EI region and the number of hours of insurable employment accumulated in their qualifying period.

In the regulatory scenario, it is expected there will be an increase of 49 657 claims due to the 6-month extension (from April 12, 2026, to October 10, 2026) of the temporary measures. This would bring the total regular claims expected in 2026–2027 to about 1.46 million.

Out of the 49 657 established claims due to this extension, it is expected there will be 15 540 regular and special benefit claims that will be established because of the measure on waiving the waiting period and 34 106 regular claims will be established because of the measure to simplify the treatment on monies on separation. It is expected that 43 500 claims will benefit from being entitled to an extra 20 weeks of EI regular benefits for long-tenured workers over the 6-month extension.^{footnote 8} Note that no new claims are expected to be established due to the extra weeks, as those who are eligible for the extra weeks would already qualify for EI.

Benefits

The primary benefit, estimated at $1,023.23 million (undiscounted), is the provision of additional EI benefits to claimants. This is equivalent to the total amount of additional EI benefits that are expected to be paid out by the EI Operating Account that would not have been paid out in the baseline scenario. The stakeholders who benefit from this measure are EI claimants. These benefits will occur over three fiscal years (2026–2027 to 2028–2029).

The methodology, assumptions and how claimants are expected to benefit are described below. Note that numbers in this section below may not add up due to rounding.

1. Benefit of extending the measure that waives the one-week waiting period

Stakeholders: Claimants who do not exhaust their EI benefits.

The Regulations’ extension of the measure that waives the one-week waiting period will result in claimants who do not exhaust their weeks of EI benefit entitlement receiving an additional week of EI benefits over the duration of their claim, relative to the baseline scenario. For example, a claimant is entitled to 30 weeks of regular benefits. However, they only end up being unemployed for 21 weeks before returning to work. Under the normal rules of the program, they would serve the one-week period and then receive 20 weeks of benefits. Under the regulatory scenario, since the waiting period is waived, the claimant can be paid benefits from the first week of unemployment and would therefore receive 21 weeks of benefits before returning to work. If that same claimant were to be unemployed for 35 weeks, they would be paid their full 30 weeks of entitlement regardless of whether they had served the waiting period or not. Thus, a claimant who exhausts their weeks of benefit entitlement will not be paid an extra week of benefit over the lifetime of their claim as a result of this measure and, therefore, will not benefit financially from the extension of this measure.

It is estimated that 397 700 claims receiving EI regular benefits will benefit from waiving the waiting period, receiving an additional week of EI benefits at an average benefit rate of $603. Of these, 10 240 are expected to be new regular benefits claims who would not have received benefits if the waiting period measure was not extended. New claims resulting from the extension of the waiting period measure are expected to be from claimants with short durations of unemployment who would likely otherwise not have applied for regular benefits. The total undiscounted benefit from this element of the measure is estimated to be $239.7 million.

It is estimated that 226 500 claims receiving EI special benefits will benefit from receiving an additional week of EI benefits at an average benefit rate of $598. Of these, 5 300 are expected to be new special benefits claimants who would not have received benefits if the waiting period measure was not extended. The total undiscounted benefit from this element of the measure is estimated to be $135.5 million.

It is estimated that 7 900 claims receiving EI fishing benefits will benefit from the extension of the waiting period measure, receiving an additional week of EI benefits at an average benefit rate of $647. Of these, 11 are expected to be new fishing benefits claimants who would not have received benefits if the waiting period measure had not been extended. The total undiscounted benefit from this element of the measure is estimated to be $5.1 million.

The total undiscounted benefit from the extension of the measure that waives the one-week waiting period is estimated to be $380.3 million.

The number of claims expected to benefit from the extension of the waiting period measure is based on expected claim volumes and historic exhaustion rates during economic downturns. The average benefit rate is projected from recent claimant data for the different claimant populations (claimants receiving EI regular, benefits, special benefits and/or fishing benefits).

2. Benefit of extending the measure that suspends the treatment of monies paid on separation

Stakeholders: Claimants who receive monies on separation.

The Regulations’ extending the measure suspending the treatment of monies paid on separation will benefit claimants who receive monies on separation (such as severance payments). Under the regulatory scenario, these claimants will be paid additional weeks of EI benefits over the duration of their claim because they will be able to be paid benefits earlier in their benefit period. Similarly, claimants who would normally not have applied for EI benefits because they knew that the money they received upon separation of employment would delay the payment of EI benefits may choose to apply as a result of the extension of the measure and will be able to receive EI benefits.

It is estimated that 102 000 claims will benefit from suspending the treatment of monies paid on separation, as they can now be paid additional weeks of EI benefits at the start of their claim at an average weekly benefit rate of $624 for 2.3 additional weeks. The total undiscounted benefit from this element of the measure is estimated to be $148.5 million.

It is estimated that 34 106 EI regular benefits claims would benefit from suspending the treatment of the monies on separation measure, as otherwise, benefits would not have been payable. This includes both claimants newly incentivized to apply for EI benefits (about 2 700), as well as claimants whose separation payments, when allocated based on their normal weekly earnings, defer EI payments beyond the 104-week maximum benefit period (approximately 31 000). These claimants are expected to receive an estimated average additional 4.9 weeks of EI regular benefits at an average weekly benefit rate of $633. The total undiscounted benefit from this element of the measure is estimated to be $106.8 million.

The total undiscounted benefit from extending the measure that suspends the rules on monies on separation is estimated to be $255.3 million.

The number of claims expected to benefit from each element of the measure is based on expected claim volumes, historic rates of claimants receiving monies on separation, and historic EI usage and exhaustion rates of these claimants. The average weeks of additional EI benefits paid and the average benefit rate are estimated based on historic claim data for this population of claimants.

3. Benefit of providing extra weeks of EI regular benefits to long-tenured workers

Stakeholders: Claimants who are long-tenured workers and who would otherwise exhaust their EI benefit entitlement.

It is estimated that 43 500 claimants who are long-tenured workers will benefit from the extra weeks measure. These claimants are expected to use an average of 14.6 of these weeks, at an average weekly benefit rate of $610. The total undiscounted benefit from this element of the measure is estimated to be $387.6 million.

The number of claimants expected to benefit from this measure is based on expected claims volumes and historic uptake rates of extra weeks by long-tenured workers when previously implemented in economic downturns. The average number of extra weeks used is also estimated based on historic usage of these measures. The average benefit rate is projected based on recent claimant data for long-tenured workers.

Table 1: Summary table of benefits

	Claims that will benefit (A)	Average additional weeks of benefits paid (B)	Average weekly benefit rate (C)	Total benefit (= A x B x C) $ million
Extension of measure that waives the waiting period — total table 1 note a	632 084	1.0	$602	$380.3
Regular benefits claims	397 726	1.0	$603	$239.7
Special benefits claims	226 493	1.0	$598	$135.5
Fishing benefits claims	7 865	1.0	$647	$5.1
Extension of measure that suspends the treatment of monies paid on separation — total	136 000	-	-	$255.3
Existing regular claims receiving additional benefits	102 000	2.3	$624	$148.5
Claims newly established receiving EI benefits	34 000	4.9	$633	$106.8
Providing 20 additional weeks of regular benefit entitlement to long-tenured workers table 1 note b	43 531	14.6	$610	$387.6
Table 1 note(s) Table 1 note a It is expected that 15 540 new regular and special benefit claims will be established because of the measure on waiving the waiting period. Return to table 1 note a referrer Table 1 note b Note that no new claims are established due to the incentive from these extra weeks as this measure provides extra weeks to those who would have otherwise already qualified for EI. Return to table 1 note b referrer

Note that numbers in the above table may not add up due to rounding.

Additional benefits from the Regulations

It is expected that a total of 49 657 new claims will result from the 6-month extension of the measures waiving the waiting period and suspending the treatment of monies paid on separation.

Beyond the direct benefits to EI claimants, these Regulations are expected to provide further indirect benefits in the form of economic stimulus. It is expected that claimants who receive additional EI benefits will spend this additional income in their local economies, and/or rely less on social programs and community supports, providing economic stimulus during a time of potential economic downturn. The magnitude of this benefit has not been quantified for this analysis due to data limitations and challenges with reliably estimating this type of impact.

The Regulations extend and expand the measures whose outcomes are being tested through Pilot Project No. 24. The information collected and lessons learned as a result of this extension and expansion (e.g. usage of extra weeks of benefits) will be used to inform future policy development. Thus, the information collected serves as an important benefit of the Regulations.

Costs

1. EI program costs from additional EI benefits paid

Stakeholders: Employers and workers who pay into the EI Operating Account

The extension of the three temporary measures in Pilot Project No. 24 is a cost to the EI Operating Account. This cost is estimated to be $1,023.3 million (undiscounted), equivalent to the total amount of additional EI benefits to be paid to claimants. These costs will occur over three fiscal years (2026–2027 to 2028–2029).

2. EI operational costs related to the administration of the Regulations

Stakeholders: Employers and workers who pay into the EI Operating Account

ESDC will incur costs for administrating the Regulations. Activities covered under these costs include processing claims, providing client support through Service Canada call centres, IT system changes, development of communication and training materials, monitoring the status and usage of the measure, and integrity measures to ensure compliance with EI program rules.

The identified administrative costs are estimated to be $45.3 million (undiscounted) and will occur over three fiscal years (2026–2027 to 2028–2029).^{footnote 9}

3. Opportunity cost of applying for EI benefits for newly eligible claimants

Stakeholders: Newly eligible EI claimants

ESDC estimates that there will be approximately 49 657 new claims that would not have been established under the baseline scenario. There will be an opportunity cost to these claimants for applying to EI. This analysis assumes it will take an average of one hour to apply for benefits at an estimated wage rate of $31.74 per hour.^{footnote 10} This cost is assumed to occur in the first fiscal year (2026–2027) and does not include costs for the second fiscal year when a marginal number of the new claims may be established. The total undiscounted cost for applying to EI benefits is estimated to be $1.6 million.

Cost-benefit statement

• Number of years: 3 (2026–2027 to 2028–2029)
• Price year: 2026
• Present value base year: 2026
• Discount rate: 7%

Table 2: Monetized benefits (estimates)

Impacted stakeholder	Description of benefit	Year 1 (2026–2027)	Year 2 (2027–2028)	Year 3 (2028–2029)	Total (present value)	Annualized value
EI claimants	Additional EI benefits paid to claimants	$695.0M	$315.7M	$12.6M	$935.6M	$356.5M
All stakeholders	Total benefits	$695.0M	$315.7M	$12.6M	$935.6M	$356.5M

Table 3: Monetized costs (estimates)

Impacted stakeholder	Description of cost	Year 1 (2026–2027)	Year 2 (2027–2028)	Year 3 (2028–2029)	Total (present value)	Annualized value
EI Operating Account	Program costs	$695.0M	$315.7M	$12.6M	$935.6M	$356.5M
	Operating costs	$45.3	$0	$0	$42.3	$16.1
Newly eligible EI claimants	Opportunity cost to apply for EI benefits for newly eligible claimants	$1.6M	$0	$0	$1.5M	$0.6M
All stakeholders	Total costs	$741.8M	$315.7M	$12.6M	$979.4M	$373.2M

Table 4: Summary of monetized benefits and costs (estimates)

Impact	Year 1 (2026–2027)	Year 2 (2027–2028)	Year 3 (2028–2029)	Total (present value)	Annualized value
Total benefits	$695.0M	$315.7M	$12.6M	$935.6M	$356.5M
Total costs	$741.8M	$315.7M	$12.6M	$979.4M	$373.2M
Net cost	$46.8M	$0	$0	$43.8M	$16.7M

Note that numbers in the above tables may not add up due to rounding.

Qualitative and quantitative impacts

The cost of the Regulations will result in upward pressures on the EI employee premium rate equivalent to 0.6 cents per $100 of insurable earnings; the employer rate would increase by 0.84 cents per $100 of insurable earnings. EI premium rates are set to ensure the EI Operating Account breaks even over a seven-year period.

The Regulations are also expected to provide indirect benefits in the form of income stabilization and economic stimulus. Claimants who will receive the additional EI benefits are expected to spend much of this additional income in their local economies, providing economic stimulus and helping to soften the impact of a potential downturn in the economy.

Small business lens

Analysis under the small business lens concluded that the Regulations do not impact Canadian small businesses. No regulatory, administrative or compliance burden on small businesses has been identified. As per standard processes currently in place for businesses to comply with the EI program, businesses will continue to be required to provide a record of employment when there is a termination, without any change in the form or frequency.

One-for-one rule

The one-for-one rule does not apply, as there is no incremental change in administrative burden on business and no regulatory titles are repealed or introduced. The Regulations do not add any new burden on employers, as no additional action is required on behalf of the employer.

Regulatory cooperation and alignment

The Regulations do not have implications for international agreements, obligations, or voluntary standards. They are not aimed at minimizing or reducing regulatory differences, nor at increasing regulatory compatibility with another jurisdiction. They do not introduce specific Canadian requirements that differ from existing regulations in other jurisdictions for an international program.

The EI program is a federal program that applies across Canada.

International obligations

The Regulations are not subject to obligations in Canada’s international trade agreements.

Effects on the environment

In accordance with the guidance on conducting Strategic Environmental and Economic Assessments (SEAA), a Climate, Nature and Economy Lens (CNEL) template was completed. The completion of this template has concluded that an assessment of environmental and economic effects is not required, nor is an assessment of cross-cutting considerations.

Gender-based analysis plus

The target population of these Regulations is workers who become unemployed following the imposition of tariffs.

The population who directly benefits is expected to slightly favour men, as they tend to be over-represented in tariff-impacted industries. However, because the measures apply to all claims, whether they were resulting from tariffs or not and to all types of benefits (regular, special and fishing), the overall impacts will reflect the characteristics of EI claimants. As the Regulations are targeted at workers, those of working age (i.e. between 18 and 60) are expected to directly benefit. The new measure providing additional weeks of EI regular benefits to long-tenured workers is expected to particularly benefit men (59.7%) and older workers (average age of 47 years). Similarly, the measure simplifying the treatment of monies on separation particularly supports mid-career, long-tenured and unionized workers who are more likely to receive severance pay following lay-off.

Some sectors may be more impacted than others by tariffs, resulting in workers in these sectors being more likely to benefit. Current employment tied to exports to the U.S. includes approximately 175 000 jobs in the auto industry, 35 000 in steel and aluminum manufacturing, 11 000 in copper production, and between 179 000 to 186 000 in softwood lumber.^{footnote 11} Since March 2025, tariff-impacted sectors are seeing large increases in EI regular claims established, such as the steel industry (up 35.4%) and the automotive sector (up 13.3%). The newly implemented tariffs on these products place a significant share of these jobs at risk, given the heavy reliance of these sectors on cross-border trade. ​Men are significantly more likely to work in U.S. trade-dependent industries (12.5%; 1.3 million workers) compared to women (4.7%; 455 000 workers). Workers with lower educational attainment are also more likely to be employed in these industries (high school diploma or lower: 11%; post-secondary education below a bachelor’s degree: 9.4%; bachelor’s degree or higher: 6.7%). These workers also receive above average wages ($37.24/hour, 6.5% higher than the $34.97 average of other industries).^{footnote 12} ​

The indirect benefits, such as increased economic stimulus from more generous EI benefits, are expected to be general and apply to all groups. However, those of working age between the ages of 25–54 years may benefit greatly, as this age group represents the majority of workers in tariff-impacted sectors. For example, 84% of workers in the aluminum sector are within the core age working group and 66% of workers in the steel sector.

The Regulations are not expected to have significant impacts on income distribution or have generational impacts.

Implementation, compliance and enforcement, and service standards

Implementation 

The Regulations will come into force on the day on which they are registered.

The Regulations will be implemented under the legacy EI system by Service Canada. The work required for Service Canada to implement the Regulations includes updating business requirements, technical design, preparation of IT specifications, IT system development and testing (system, integration and acceptance), and project management. Implementation also includes adjustments to procedures and guidance / reference documents, training material, public-facing content and internal communication.

Service delivery considerations associated with this implementation include managing the claimant base and maintaining the resources in place that support the claims associated with the Regulations. The longer the life cycle of a claim, the more claim maintenance is required.

Compliance and enforcement

As the Regulations are undertaken within the EI program, the same compliance and enforcement authorities as currently found in the Employment Insurance Act apply. Compliance reviews consist of ensuring compliance with applicable legislation, regulations and policies, including identification of cases of error, misrepresentation and abuse. Enforcement investigations occur when there are reasonable grounds to suspect that an offence under the Employment Insurance Act has occurred and, where supported by the evidence, a prosecution may be pursued.

Service standards

Service Canada provides clients with a single point of access to a wide range of government services and benefits, including the processing and payment of EI claims. Clients can access information, apply and get support for these services through a national network of service centres, online through tools like the My Service Canada account, and by telephone using the 1 800 O-Canada number. Regarding service standards, the Department’s objective is to issue a payment or notice of non-eligibility within 28 days from the date on which the EI application is received, 80% of the time.

Contact

Benoit Cadieux
Executive Director
Employment Insurance Policy
Skills and Employment Branch
Employment and Social Development Canada
140 Promenade du Portage, Phase IV
Gatineau, Quebec
K1A 0J9
Email: benoit.cadieux@hrsdc-rhdcc.gc.ca