How to Qualify for EI Benefits After Retirement in Canada

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I’m a 75-year-old man who works part time. I’ve been contributing to Employment Insurance (EI) every two weeks for the past 10 years.

I also receive Canada Pension Plan (CPP) and Old Age Security (OAS).

If I retire this year, do I qualify to collect EI benefits for some period? I’ve paid in for a decade and expect to be eligible for some benefits.

—JM

Getting EI in retirement

Employment Insurance (EI) is administered by Service Canada and provides regular benefits for eligible workers who lose their jobs through no fault of their own, as well as several special benefits. Workers pay into the program through payroll deductions. Since 2010, self-employed people can opt into EI and may qualify for certain special benefits after 12 months from their confirmed registration date. Self-employed sole proprietors or partners report and pay EI premiums through their tax filings based on net business income. If you are an incorporated shareholder with more than 40% control of the company, premiums apply only to salary, not dividends.

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What are EI regular and special benefits?

Regular EI benefits are intended for workers who lose their jobs through no fault of their own—examples include layoffs due to restructuring or seasonal layoffs. Special benefits cover specific circumstances such as maternity and parental leave, sickness benefits for those unable to work due to illness or injury, compassionate care for those supporting a seriously ill family member, and benefits for parents of critically ill children.

Retiring voluntarily does not qualify as a special benefit. Regular EI is not designed to provide payments to people who choose to stop working; it supports those who are involuntarily unemployed.

Can you get EI if you quit or retire?

If your departure from work is involuntary—because your job ended for reasons beyond your control—you may qualify for regular EI. There are also cases where quitting is considered to be for “just cause.” To receive EI after quitting, you must demonstrate to Service Canada that leaving was the only reasonable option. Examples of circumstances that may constitute just cause include:

sexual or other harassment
need to move to a new residence with a spouse or dependent child
discrimination at work
unsafe working conditions that threaten health or safety
requiring leave to care for a child or immediate family member
a solid, reasonable assurance of another job starting soon
significant changes to wages or working conditions
persistent unpaid or excessive overtime
major changes to job duties
difficult relations with a supervisor when you are not primarily at fault
employer breaking the law
pressure from employer or colleagues to quit

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How do CPP, QPP and OAS affect EI?

If you qualify for EI, receiving Old Age Security (OAS) does not generally affect your eligibility, because OAS is an age-based pension unrelated to employment income. By contrast, Canada Pension Plan (CPP), Québec Pension Plan (QPP), employer pensions and many foreign employment-based pensions are treated as earnings and can reduce EI entitlement. These pensions must be reported to Service Canada and are deducted from EI benefits.

EI also adjusts for any earnings you receive while collecting benefits. For most earners, EI reduces payments by $0.50 for every $1 earned, up to 90% of your previous weekly earnings; beyond that threshold, EI is reduced dollar-for-dollar. This applies to income from work, self-employment, CPP/QPP and employer pensions.

Can you collect EI when you retire in Canada?

EI regular benefits are available for a limited period, typically between 14 and 45 weeks, depending on your region’s unemployment rate and the number of insurable hours you accumulated over the previous 52 weeks or since your last claim. Low-income families with children may qualify for the EI family supplement, which can increase benefits by up to 80% of average insurable earnings if net family income is below the threshold set by Service Canada.

Although you’ve contributed to EI for 10 years, the program pays benefits only to those who meet the eligibility criteria for regular or special benefits. Voluntary retirement is not a qualifying reason in itself, and any pension income you receive—such as CPP, employer pensions or foreign pensions—can reduce or eliminate your EI entitlement.

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