Supplementing maternity, parental, compassionate care or parents of critically ill children benefits

Note

This section is applicable to employers who provide top-ups to maternity, parental (including adoption) compassionate care or parents of critically ill children benefits. These plans do not have to be registered with Service Canada.

Employers who provide supplemental payments to their employees while they receive EI benefits during a period of temporary stoppage of work, training, illness, injury or quarantine should refer to the following link: Employers supplementing EI benefits during a period of temporary stoppage of work, training or illness. Payments originating from these plans will not be deducted from EI benefits when the plans are registered with Service Canada.

Overview

Employers can offer supplemental payments to maternity, parental (including adoption), compassionate care or parents of critically ill children benefits for their employees.

The top-up amounts are not considered as earnings and are not deducted from the employees’ EI benefits when certain requirements are met.

Requirements that must be met

The supplement is not deducted from the employees’ EI benefits if the plan meets the following two conditions:

  • When the payment is added to the employee’s EI weekly benefits, it does not exceed the employee’s normal weekly wage earnings — 100% of gross salary; and
  • The payment is not used to reduce other accumulated employment benefits such as banked sick leave, vacation leave credits, or severance pay.

The supplement can be paid during the EI waiting period without affecting the start of the EI benefits.

Is registration of the plan required?

Employers are not required to register plans used to supplement EI maternity, parental, compassionate care or parents of critically ill children benefits with Service Canada.

However, records still have to be kept to show the effective date of the plan and that it meets the two conditions previously mentioned.

Information for employees

The employee who will receive a supplement will have to indicate it in his application for maternity, parental, compassionate care or parents of critically ill children benefits.

In addition, if work is performed during that period, the employee must declare the money received which may be deducted from his EI benefits.

Additional requirements

Additional requirements may be added to the employer’s plan providing it does not affect the two specific conditions. For example, the plan may require that the employee return to work for the employer for a period of at least six months after the maternity, parental, compassionate care or parents of critically ill children benefits have been paid.

How to contact us?

For more information on Supplement to EI maternity, parental, compassionate care and parents of critically ill children benefits, please contact your Service Canada Centre.

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