Summary of the evaluation of the Working While on Claim Pilot Projects

From: Employment and Social Development Canada

Alternate formats

Summary of the evaluation of the Working While on Claim Pilot Projects [PDF - 176KB]

Large print, braille, MP3 (audio), e-text and DAISY formats are available on demand by ordering online or calling 1 800 O-Canada (1-800-622-6232). If you use a teletypewriter (TTY), call 1-800-926-9105.

Evaluation of the Working While on Claim Pilot Projects

Between 2005 and 2016, five pilot projects tested two rule changes to determine their possible impact on encouraging Employment Insurance (EI) claimants to work more while receiving benefits.

Legislated rules

The original Working While of Claim rules allowed EI claimants to earn an income while receiving benefits. Benefits are reduced by one dollar for every dollar of earnings that are greater than $50 or 25% of a claimant’s weekly benefit rate (whichever is higher).

Key findings

Rule no. 1 (Pilots 8, 12 and 17) increased allowable earnings from $50 or 25% of a claimant’s weekly EI benefit rate to $75 or 40%. Relative to the original rules,

However, in all regions studied, the rule change reduced the probability of claimants working with no benefits by 7% in high unemployment regions and by 16-20% in all other regions.

Rule No. 2 (Pilots 18 and 19) introduced a 50% reduction in benefits on the first dollar earned until earnings reach 90% of the claimant’s weekly insurable earnings. It was found to be more effective at encouraging claimants to work more while on claim compared to previous pilots.

Recommendation

The full Evaluation of the Working While on Claim Pilot Projects is now available.

Page details

Date modified: