As thousands of people in Canada get laid off every month and the situation is expected to get worse, more and more people turn to Employment Insurance (EI) for help. EI has nothing to do with charity. The benefits are not funded by the government. The program is, as suggested by its name, an insurance program funded by the premiums paid by employees while they are employed and the companies they work for. Therefore, there is nothing shameful in receiving unemployment benefits. This is something you have been paying for, perhaps for years, and something you are entitled to, as opposed to welfare which is funded by other people’s taxes and is, arguably, unfair. Employees pay 1.73% of their insurable earnings and their employers pay 2.42%, subject to certain maximums.

Employment Insurance replaces a certain percentage of your lost earnings, which means that if you were earning higher income before you lost your job, your EI benefits will be higher as well. In many cases, EI comes as a blessing. I have met people who were able to enjoy life more while on EI. When you don’t have to work every day, you can do things which you wouldn’t normally be able to do: travel, spend more time with family and friends, enjoy your hobbies and simply slow down to smell the flowers and notice the beauty around you.

As thousands of people in Canada get laid off every month and the situation is expected to get worse, more and more people turn to Employment Insurance (EI) for help. EI has nothing to do with charity. The benefits are not funded by the government. The program is, as suggested by its name, an insurance program funded by the premiums paid by employees while they are employed and the companies they work for. Therefore, there is nothing shameful in receiving unemployment benefits. This is something you have been paying for, perhaps for years, and something you are entitled to, as opposed to welfare which is funded by other people’s taxes and is, arguably, unfair. Employees pay 1.73% of their insurable earnings and their employers pay 2.42%, subject to certain maximums.

Employment Insurance replaces a certain percentage of your lost earnings, which means that if you were earning higher income before you lost your job, your EI benefits will be higher as well. In many cases, EI comes as a blessing. I have met people who were able to enjoy life more while on EI. When you don’t have to work every day, you can do things which you wouldn’t normally be able to do: travel, spend more time with family and friends, enjoy your hobbies and simply slow down to smell the flowers and notice the beauty around you.

Qualifying for unemployment benefits is not easy and paperwork requirements are somewhat cumbersome and perhaps excessive. Otherwise, too many people would enjoy this paradise which would lead to the increase in costs. Generally, the main qualifying criterion is that you have to lose your job not due to your own fault. You will qualify if you are laid off, for example, because your company is downsizing, closing a location or your position is no longer required. But if you get fired for doing something wrong or if you quit voluntarily, you will not qualify (although there are exceptions). The second major qualifying criterion is that you must have been employed and contributing to the program for a certain period of time prior to your unemployment. This period varies by province. These rules, of course, are much more complicated and you need to refer to the government website to determine if you may qualify.

If you qualify, you can receive your benefits for up to 52 weeks. The size of regular benefits is 55% of your average insurable earnings up to the maximum of $42,300. If you have lost your job, don’t get discouraged. Take this as an opportunity to take a well deserved break and use this time to take care of yourself, your family and those areas of your life you have neglected. Many use this time to start a business or get the training they need to change their careers. The opportunities are plenty, just see the positive side.

Nikolay Sisan is a Certified Financial Planner and freelance writer in Vancouver.