Employment Insurance Regulations - Part I - Unemployment Benefits

The following information is out of date.

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Current EI (Main) Regulations

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PART I

UNEMPLOYMENT BENEFITS

23. (1)  For the purposes of section 14 of the Act, insurable earnings shall be allocated in the following manner:

1. remuneration, including statutory holiday pay, other than the remuneration referred to in paragraph (b), paid in respect of a pay period shall be allocated in the following manner:
   1. if the remuneration is paid in respect of work performed during the pay period, it shall be allocated to that pay period in proportion to the hours worked during each day of the period,
   2. if the remuneration is paid in respect of a period of leave, it shall be allocated to that period at the rate at which the period was compensated,  
   3. if the remuneration is paid in respect of a period of leave in the form of a lump-sum payment calculated on a basis other than the length of the period of leave, it shall be allocated proportionately over the whole period;
2. overtime pay, shift premiums, pay adjustments, retroactive pay increases, bonuses, gratuities, accumulated sick leave credits, incentive payments, cost of living allowances, separation payments, and wages in lieu of notice and vacation pay not paid in respect of a pay period shall be allocated proportionately over the pay period in which they are paid;
3. any other remuneration not paid in respect of a pay period and not covered by paragraphs (a) and (b) shall be allocated proportionally over the pay period in which it is paid; and
4. remuneration that remains unpaid for reasons described in subsection 2(2) of the Insurable Earnings and Collection of Premiums Regulations shall be allocated under paragraphs (a) to (c) in the same manner as if it had actually been paid in the normal course of business.

(1.1) Where an insured person is on unpaid leave or has quit their employment or been terminated or laid off, the remuneration referred to in paragraph (1)(b) shall be allocated proportionately over the last pay period for which regular salary, wages or commissions are paid.

 (2)  Where an insured person is employed in insurable employment on the basis of a contract for a fixed term and their insurable earnings under the contract are not paid on a regular basis, the insurable earnings shall, regardless of the basis on which they are paid, be allocated proportionately over the term of the contract.

 (3)  Where the remuneration of an insured person consists solely of commissions or of salary and irregularly paid commissions, the person's insurable earnings paid in the period of employment or in the last 52 weeks, whichever is shorter, shall be allocated proportionately over the shorter of the period of employment and the last 52 weeks, as applicable, excluding weeks for which the insured person is on unpaid leave of absence from employment for one of the reasons referred to in subsection 12(3) of the Act.

  (4)  Where an insured person has insurable earnings to which none of subsections (1) to (3) apply, the insurable earnings paid in the period of employment or in the last 52 weeks, whichever is shorter, shall be allocated proportionately over the shorter of the period of employment and the last 52 weeks, as applicable.

  (5)  Where the insurable earnings of an insured person for a pay period that is running at the time the insured person is laid off or separated from employment cannot be ascertained with accuracy, the employer may estimate the person's insurable earnings for that period.

SOR/97-31, s. 12; SOR/97-310, s. 6; SOR/2002-154, s.2 

24.  Where a period of employment for which insurable earnings have been reported on the record of employment falls partially within the claimant's rate calculation period, the Commission shall, unless presented by the claimant or the employer with evidence of the amount of insurable earnings actually earned in the rate calculation period, allocate the amount of insurable earnings, excluding insurable earnings paid or payable on or after January 1, 1997 by reason of lay-off or separation from employment, proportionately over that period of employment, on the basis that the claimant earned the same amount of insurable earnings for each of the seven days of each week. 

SOR/97-31, s. 13 

24.1 The amount of insurable earnings paid or payable to a claimant by the employer on or after January 1, 1997 by reason of lay-off or separation from employment that are to be considered insurable earnings for the rate calculation period is the lesser of

1. the actual amount of those earnings, and
2.  the amount obtained by multiplying the total amount of insurable earnings paid or payable to the claimant for the rate calculation period, less any insurable earnings paid or payable on or after January 1, 1997 by reason of lay-off or separation from employment, by 0.18.

SOR/97-31, s. 13.