Extending the Sickness Benefit from 15 to 26 weeks
Canada’s federal government committed to improving the current EI program in the 2021 budget. For many years, there have been proposals to change EI. The COVID-19 epidemic underscored the need for a change in policy even more.
What is happening to Sickness Benefits?
The government has announced that the EI Sickness Benefit will be extended from 15 to 26 weeks beginning in 2022. This means an authorized absence may be prolonged up to a full 26 weeks under the modified program.
Does this affect the PRP (Premium Reduction Program)?
EI has a Premium Reduction Program (“PRP”) for plan sponsors that provide private short-term benefits to their workers. As an incentive to manage absences outside of EI, the PRP offers sponsors and employees a premium reduction.
There are currently planning consultations to improve the PRP for Plan Sponsors. These discussions will continue indefinitely. If you are already receiving the PRP, you will be able to continue doing so after the EI modifications take effect.