EI Monitoring and Assessment Report 2012/13 IV. EI Special Benefits
Notice: Refer to the Table of contents to navigate through the EI Monitoring and Assessment Report 2012/13.
1. Overview and Legislative Changes
In addition to assisting those who are unemployed, EI plays an important role in supporting employees and self-employed individuals (including fishers) who are too sick to work, who stay at home with a newborn or newly adopted child, or who take a temporary leave from work to provide care or support to a gravely ill family member.
As of January 31, 2010, EI special benefits, including maternity, parental, sickness and compassionate care benefits, were extended to self-employed people, who could opt into the EI program for the first time. Benefits were payable as of January 1, 2011.
Effective July 4, 2010, the EI benefit period may be extended for Canadian Forces members who cannot collect all their parental benefits because of an imperative military requirement that either defers or interrupts their parental leave.
On December 14, 2012, the Helping Families in Need Act received Royal Assent, creating a new type of EI benefit for parents of critically ill children (PCIC). Under the PCIC benefits, up to 35 weeks of EI benefits are available, to be shared among eligible parents who are unable to work while providing care or support to one or more children under the age of 18 with a life-threatening illness or injury. This benefit became available on June 9, 2013, to eligible EI insured workers and to self-employed individuals, who have contributed to EI.
Access for employees to the new PCIC benefits is consistent with the existing eligibility requirements for EI special benefits, requiring 600 insurable hours in the shorter of the 52 weeks prior to the start of their claim or since the start of their last claim. Self-employed persons who have opted into the EI program need to have earned a minimum level of income in the previous calendar year ($6,515 earned in 2013 for claims in 2014) to be eligible for the benefit. Footnote 107 In addition, to qualify for the PCIC benefits, a claimant needs to provide a medical certificate attesting that the child is critically ill or injured.
The Helping Families in Need Act also amends the Employment Insurance Act to allow insured persons who fall ill or are injured while receiving EI parental benefits to qualify for EI sickness benefits despite not being "otherwise available for work" or, for self-employed persons who would be "otherwise be working". This new measure came into force on March 24, 2013. Future reports will analyse the impact and effectiveness of these new initiatives.
The following sections do not include data on maternity and parental benefits in Quebec, for either employees or self-employed individuals, as these benefits are offered under the Quebec Parental Insurance Plan (QPIP). Data on sickness and compassionate care benefits in Quebec are included in their respective sections.
1.1 EI Special Claims and Benefits
The numbers of special claims and benefits paid are less likely to be affected by the economic cycle than those related to regular benefits. In 2012/13, there were 510,040 special claims in Canada, which represented a 0.3% increase from 2011/12, which followed a 1.8% increase from 2010/11 to 2011/12.
Total special benefits increased by 4.7% to $4.48 billion in 2012/13, from $4.28 billion in 2011/12. It was the second consecutive year that special benefits had increased (they rose by 2.5% in 2011/12).
Women accounted for 67.1% of total special claims and received 83.1% of special benefits. Two main factors may explain why women received a larger proportion of special benefits than man did. First, only women are eligible for maternity benefits, which comprised 21.9% of total special benefits. Second, when compared to men, women tend to be on parental benefits for a longer duration. For example, in 2012/13, the average duration of biological parental benefits was 31.8 weeks for women and 17.1 for men. Similarly, the average duration of adoptive parental benefits was 29.8 weeks for women and 16.1 weeks for men.
1.1.1 EI Special Benefits for Self-Employed Individuals
As of January 31, 2010, EI special benefits—including maternity, parental, sickness and compassionate care benefits—were extended to self-employed people, who could opt into the EI program for the first time. These benefits were payable as of January 1, 2011. Footnote 108
Between the opt-in date of the measure and March 31, 2013, a total of 17,153 self-employed individuals opted into the EI program. Of these, a total of 4,289 individuals subsequently opted out of the EI program.
Between January 2011, when self-employed individuals were first eligible to claim EI special benefits, and March 2013, self-employed individuals made 1,561 claims and received $12.82 million in benefits, with 259 claims in 2010/11, 617 claims in 2011/12 and 685 claims in 2012/13. In 2012/13, self-employed women made 662 special claims (96.6% of all special claims), and self-employed women aged 25 to 44 years old making 619 special claims (90.4% of all special claims).
In 2012/13, of the 685 claims from self-employed individuals, 497 received EI maternity benefits, representing an increase of 9.2% (+42 claims) from 2011/12. These claims, accounted for $1.91 million in maternity benefits in 2012/13. Moreover, 540 of the 685 claims resulted in EI parental (biological) benefits, accounting for $3.43 million in biological parental benefits in 2012/13. In addition, 8 of the 685 claims resulted inEI parental adoptive benefits, accounting for $67,300 in adoptive parental benefits in 2012/13.
Results of the 2011 Evaluation Survey of Self-Employed People Footnote 109 found that self-employed individuals who had registered for EI special benefits were more likely than self-employed individuals who did not register for special benefits: to be women; to be under 45 years of age; to report post-secondary education; to be self-employed with employees; to work in the government, education or health care industries; and to report fewer years of self-employment.
1.1.2 EI Parental Benefits for Military Families
Effective July 4, 2010, the eligibility period was extended for Canadian Forces members who could not collect all their parental benefits during the standard eligibility period because of an imperative military requirement that either deferred or interrupted their parental leave. The eligibility period during which EI parental benefits can be paid may be extended by one week for each week that an eligible claimant is unable to collect EI parental benefits. The extension is subject to a maximum eligibility period of 104 weeks. Footnote 110
As of March 31, 2013, there have been 64 parental claims that have utilized this provision: 39 from Ontario, 21 from the Western provinces and 4 from the Atlantic provinces. Canadian Forces members residing in Quebec can apply for parental benefits under the QPIP.
1.2 Level of EI Special Benefits
As shown in Table 27, growth in the average weekly benefit rate was positive across special benefits and genders in 2012/13. Average weekly special benefits increased by between 2.6% and 3.8% for all benefit types and genders. This general increase is in line with the increase in average weekly wages and the increase in the maximum insurable earnings (MIE) from 2011 to 2012. MIE increased by 3.8%, from $44,200 in 2011 to $45,900 in 2012.
Another way to assess the level of benefits support is to look at the proportion of special benefits claimants receiving the maximum weekly benefit. In 2012/13, 37.8% of special benefits claimants received the maximum weekly benefit, which was 0.2 percentage points higher than the figure in 2011/12. While this proportion has remained relatively stable between 37% and 38% over the last few years, it is lower than the proportion of regular benefits claimants who received the maximum weekly benefit in 2012/13 (41.6%). There are two reasons for this: men were overrepresented among regular claims (60.0%), while women (67.1%) were overrepresented among special claims; and the average weekly wage for men was higher than that for women. According to the Labour Force Survey, in 2012/13, the average weekly wage for men ($1,086) was 21.8% higher than that for women ($892).
| 2012/13 ($) |
2011/12 ($) |
Growth (%) | ||
|---|---|---|---|---|
| Parental (Biological) |
Men | 443 | 427 | 3.8 |
| Women | 396 | 382 | 3.5 | |
| Both | 402 | 388 | 3.5 | |
| Parental (Adoption) | Men | 481 | 466 | 3.2 |
| Women | 438 | 426 | 2.8 | |
| Both | 449 | 437 | 2.6 | |
| Maternity | Men | N/A | N/A | N/A |
| Women | 394 | 380 | 3.7 | |
| Both | 394 | 380 | 3.7 | |
| Sickness | Men | 404 | 390 | 3.5 |
| Women | 336 | 326 | 3.1 | |
| Both | 365 | 353 | 3.5 | |
| Compassionate Care | Men | 426 | 412 | 3.4 |
| Women | 375 | 363 | 3.3 | |
| Both | 389 | 376 | 3.6 | |
1.3 Combining EI Special Benefits
Different types of special benefits can be combined within a single claim, under certain circumstances, to a potential maximum duration of 104 weeks. Footnote 111
Among new special claims established in 2011/12, Footnote 112 the majority (68.1%) of claimants used only one type of special benefit, while nearly one third (31.6%) of them combined more than one special benefit in a single claim; 27.2% combined two special benefits and 4.4% combined three special benefits. The vast majority (97.5%) of those combining two special benefits combined maternity and parental benefits.
An evaluation study Footnote 113 found that the majority of maternity/parental claimants do not combine their maternity/parental benefits with other types of benefits (i.e., regular benefits, sickness benefits, fishing benefits and compassionate care benefits). However, if they do, women outside of Quebec, often combine maternity/parental benefits with sickness benefits, while men outside of Quebec, often combine parental benefits with regular benefits.
1.4 Premium Reduction Program
The Premium Reduction Program (PRP) reduces EI premiums for employers if their employees are covered by a registered employer-based short-term disability plan that meets or exceeds the requirements set by the EI Commission in the Employment Insurance Regulations. In this context, for an employer's sickness benefits plan to be eligible for a premium reduction under the PRP, employees must have at least equivalent protection provided by EI sickness benefits. Additionally, participating employers must return the employee share of the premium reduction to workers, which may be done via another employee benefit such as dental coverage, or other methods in place between employee and employer.
In 2012, there were 33,500 employers participating in the PRP, representing a decrease of 800 employers from the previous year (Table 28). The insurable earnings of employees who were eligible for premium reductions were $247.8 billion, or 49% of total insurable earnings in Canada. In 2012, participating employers received a total of $918 million in premium reductions, an increase of $36 million from the previous year, representing 4.3% of annual gross EI premiums. Footnote 114
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | |
|---|---|---|---|---|---|---|---|
| Number of Employers Participating in the PRP | 34,000 | 32,700 | 32,500 | 32,100 | 33,800 | 34,300 | 33,500 |
| Total Amount of Premium Reductions Received by Participating Employers ($ millions) |
$628M | $714M | $793M | $816M | $864M | $882M | $918M |
| Amount of Premium Reduction as a % of Annual Gross EI Premiums | 3.7% | 4.0% | 4.4% | 4.6% | 4.7% | 4.4% | 4.3% |
2. EI Maternity and Parental Benefits
EI maternity benefits are offered to biological mothers, including surrogate mothers, who cannot work because they are pregnant or have recently given birth. A maximum of 15 weeks of EI maternity benefits is available. The 15 weeks can start as early as eight weeks before the expected date of birth and can end as late as 17 weeks after the actual date of birth.
EI parental benefits are offered to parents who are caring for a newborn or newly adopted child. A maximum of 35 weeks of parental benefits is available to biological or adoptive parents, which can be shared between the two parents.
For assessment purposes, various time periods in EI administrative data are used to ensure accuracy when analyzing the duration of EI special benefits. In this report, to assess the average duration of EI parental benefits, only claims established in the first half of 2012/13 were used, to ensure data were based on as many completed EI parental claims as possible. Given the shorter duration of maternity benefits, all claims established in 2012/13 were used.
2.1 EI Maternity and Parental Claims and Benefits
2.1.1 EI Maternity Claims and Benefits
The number of new maternity claims increased by 1.9%, from 167,540 in 2011/12 to 170,680 in 2012/13. Similarly, maternity benefits increased by 5.2% to $982.0 million in 2012/13. Self-employed women made 497 maternity claims, accounting for $1.91 million in maternity benefits in 2012/13.
As in previous years, the vast majority of maternity claims were made by women aged 25 to 44, who accounted for 89.0% of all maternity claims in 2012/13. Women under 25 accounted for 10.8% of total maternity claims.
From 2011/12 to 2012/13, the number of maternity claims decreased by 6.8% in the Atlantic provinces, while it increased by 1.2% and 4.8% in Ontario and the Western provinces, respectively. The change observed in the number of maternity claims is in line with the change in the number of live births. For example, according to Statistics Canada's Annual Demographic Estimates, from 2011/12 to 2012/13, the number of live births in Ontario and the Western provinces increased by 1.1% and 2.3%, respectively, while the Atlantic provinces experienced a 0.7% decrease over the same period.
Of the 170,680 maternity claims in 2012/13, the majority (162,920 or 95.5%) were followed by biological parental claims. In addition, among the 164,680 biological parental claims made by women, 98.9% or 162,920 were preceded by maternity claims.
2.1.2 EI Parental (Biological) Claims and Benefits
In 2012/13, the number of parental claims made by biological parents increased by 1.9% to 190,610. Parental benefits for biological parents rose by 3.3% to $2.28 billion in 2012/13. Self-employed individuals made 540 parental claims, which accounted for $3.43 million in biological parental benefits in 2012/13.
As in previous years, women made the vast majority (86.4%) of biological parental claims in 2012/13.The number of biological parental claims rose for women (+2.0%) and men (+1.5%) between 2011/12 and 2012/13.
The majority of biological parental claims are made by women aged 25 to 44, and in 2012/13 they accounted for 77.2% of all biological parental claims. Men aged 25 to 44 accounted for 12.4% of all biological parental claims. Combined, men and women under 25 also accounted for 9.7% of biological parental claims.
The number of parental claims made by biological parents increased significantly in the Western provinces (+4.8%) and in Ontario (+1.2%) in 2012/13, while it decreased in the Atlantic provinces (-6.8%). As shown in Chart 35, the fluctuation in the number of parental claims made by biological parents was consistent with the fluctuation in the number of maternity claims among the four regions.
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Show Data Table
Chart 35: Changes in the Number of Parental (Biological) and Maternity Claims, by Region, Between 2011/12 and 2012/13 Year over year changes Prental Biological Claims Maternity Claims Atlantic provinces -6.8% -6.8% Ontario 1.2% 1.2% Quebec1 Western provinces 4.8% 4.8% - 1 Quebec is excluded as this province has administered its own maternity and parental benefits since January 2006.
2.1.3 EI Parental (Adoptive) Claims and Benefits
The number of parental claims made by adoptive parents increased in 2012/13 to 1,860 (+1.1%). Adoptive parents received a total of $22.9 million in benefits. There were no parental adoptive claims from self-employed individuals in 2012/13.
The average duration of EI adoptive parental claims was 26.6 weeks per claim in 2012/13, slightly higher than the duration in 2011/12 (25.1 weeks). Parents who adopted used 91.7% of the full 35 weeks available to them, on average, up from 85.2% in 2010/11. The average duration and proportion of all weeks used for adoptive parental claims were lower than those for biological parental claims. In 2012/13, the average duration of biological parental claims was 29.9 weeks per claim, 3.3 weeks higher than adoptive parental claims.
2.2 Accessibility to EI Maternity and Parental Benefits
According to the 2012 Employment Insurance Coverage Survey (EICS), the number of mothers with a child up to 12 months old decreased by 1.5% in 2012, to 395,990, compared with to 401,930 in 2011. In 2012, 77.9% of these mothers had insured income before giving birth to, or adopting their child, compared with 76.6% in 2011. Among these insured mothers, 88.2% received maternity or parental benefits, virtually unchanged from 2011 (88.6%) Overall, nearly two-thirds (62.4%) of all mothers with a child up to 12 months old received special benefits in 2012.
For all provinces combined, the proportion of fathers who claimed or intended to claim parental benefits decreased to 25.4% in 2012, from 29.3% in 2011, and 29.6% in 2010.
Since the introduction of the QPIP on January 1, 2006, the proportion of fathers in Quebec who took or intended to take parental leave has almost tripled, from 27.8% in 2005 to 80.1% in 2012. The QPIP has had a major impact on the number of fathers who claimed or intended to claim parental benefits. It includes leave that applies exclusively to fathers. The proportions reported above originate from the EICS and include parents in Quebec receiving benefits from the provincial program.
2.3 Level of EI Maternity and Parental Benefits
The average weekly benefit for maternity benefits continued to rise in 2012/13, reaching $394 (+3.7%), up from $380 in 2011/12.
Similarly, the average weekly benefit for parental (biological) benefits rose by 3.5% to $402 in 2012/13, compared with $388 in the previous year. The proportion of parental benefit claimants who received the maximum weekly benefit was 48.6% similar to the proportion in 2011/12 (48.9%).
The average weekly benefit for adoptive parental claims rose by 2.6% to $449 in 2012/13. In 2012/13, 69.9% of adoptive parental claimants received the maximum weekly benefit, an increase of 1.4 percentage points from 68.5% in 2011/12.
2.4 Duration of EI Maternity and Parental Benefits
As in previous fiscal years, in 2012/13, parents used almost all of the EI maternity and parental weeks to which they were entitled. Although the vast majority of mothers received the full 15 weeks to which they were entitled, the average duration of maternity benefits remained around 14.6 weeks.
The average duration for parental benefits, as calculated on a per-claim basis, was 29.9 weeks for biological parents and 26.6 weeks for adoptive parents in 2012/13.
However, the average duration of parental claims can be adjusted to reflect the fact that parents often share the 35 weeks of parental benefits available to them. The average duration of biological parental claims, as calculated on a per-child basis, was 32.3 weeks for parents who decided to share the parental benefits, and this has remained stable over several years. Footnote 115, Footnote 116
Claimants who received both maternity and parental benefits used 46.9 weeks, or 93.7% (see Chart 36), of the 50 weeks of maternity and parental benefits available to them on average in 2012/13, a proportion similar to that in the previous year (93.5%).
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Show Data Table
Chart 36: Proportion of Entitlement Used by EI Maternity and Parental Benefits Claimants, 2009/10 to 2012/13 EI maternity benefits EI parental benefits EI maternity and parental benefits 2009/10 98.0% 92.0% 94.1% 2010/11 97.3% 91.6% 93.6% 2011/12 97.3% 91.8% 93.5% 2012/13 97.3% 92.2% 93.7%
Low-income claimants receiving maternity and parental benefits as well as the Family Supplement collected an average of 46.2 weeks of maternity and parental benefits, relatively similar to the number of weeks collected by higher-income claimants (46.9 weeks) not receiving the Family Supplement.
Similarly, the decision to share parental (biological) benefits has a limited effect on the average duration of the claim, as parents who shared parental benefits used 33.1 weeks of benefits combined, compared with 32.2 weeks used by parents who did not share parental benefits in 2012/13.
3. EI Sickness Benefits
EI provides up to 15 weeks of sickness benefits to help claimants who are unable to work due to a short-term illness, injury or quarantine.
3.1 EI Sickness Claims and Benefits
In 2012/13, the number of new sickness claims decreased by 0.4% from 331,220 in 2011/12 to 329,750. Despite the decrease in sickness claims, benefits paid increased by 6.6% to $1.2 billion 2012/13. The increase in sickness benefits paid in 2012/13 is partially attributable to an increase of 3.1% in the average duration of sickness benefits and an increase of 3.5% in average weekly sickness benefit rate. In 2012/13, self-employed individuals made 135 sickness claims, and received $270,000 in sickness benefits.
Women made 57.4% of EI sickness claims, which was similar to the proportion in previous years. Older workers represented 23.9% of all EI sickness claims, while they represented only 18.6% of national employment. The proportion of sickness benefits claims made by older workers continued to increase, up from 21.7% in 2010/11 and 23.0% in 2011/12. Older workers were also overrepresented among those who collected the maximum 15 weeks of benefits.
The 55 and older group showed the largest increase in sickness claims (+3.4%) in 2012/13, reflecting the continued increase in employment for workers in this age group and, more generally, the aging of Canada's population. In 2012/13, their share of employment increased by 0.7 percentage points from 17.9% in 2011/12 to 18.6% in 2012/13. Claims from those aged 25 to 44 decreased by 1.8 percentage points, while claims from those aged 45 to 54 dropped by 1.3 percentage points, respectively in 2012/13.
Three provinces saw increases in the number of sickness claims in 2012/13, with the sharpest increases in Alberta (+7.6%) and Quebec (+3.4%). Among the provinces that experienced decreases in the number of sickness claims, Prince Edward Island (-12.1%) and Nova Scotia (-8.2%) reported the largest decreases on percentage basis.
3.2 Level of EI Sickness Benefits
The average weekly benefit for sickness claims rose by 3.5% to $365 in 2012/13, compared with $353 in the previous year. This increase was consistent with the increase in average wages in 2012/13 which increased by 2.5%.
3.3 Duration of EI Sickness Benefits
In 2012/13, sickness claimants received benefits for an average of 9.7 weeks, comparable to the average (9.4 weeks) in 2011/12 and representing 64.7% of the maximum entitlement of 15 weeks. In addition, 33.8% of sickness claimants collected the maximum 15 weeks of benefits, 2.7 percentage points higher than the proportion observed in 2011/12 (31.1%).
4. EI Compassionate Care Benefits
The EI program provides six weeks of EI compassionate care benefits Footnote 117 to persons who have to be away from work temporarily to provide care or support to a family member who is gravely ill with a significant risk of death.
4.1 EI Compassionate Care Claims and Benefits
In 2012/13, there were 6,102 claims for EI compassionate care benefits, a 2.1% increase over 2011/12. Compassionate care benefits amounted to $11.6 million in 2012/13, a 5.2% increase from 2011/12.
In 2012/13, women made 71.9% of compassionate care claims, a decrease of 2.6 percentage points from 2011/12 (74.5%), while men made 28.1%, an increase of 2.6 percentage points from 2011/12 (25.5%). From 2011/12 to 2012/13, the number of compassionate care claims made by women decreased by 1.4%, while the number of claims made by men increased by 12.4%. The number of claims made by those aged 55 and older increased slightly (+4.5%) in 2012/13, similar to the increase in previous year (+4.4%), while those made by people aged 45 to 54 increased by 6.7% in 2012/13.
4.2 Accessibility to EI Compassionate Care Benefits
To apply for compassionate care benefits, claimants must indicate their relationship with the family member that they are caring for, and provide a medical certificate proving the family member is gravely ill and at significant risk of death. An evaluation study found that Footnote 118 the vast majority (81.1%) of the applicants filed for compassionate care benefits to take care of their gravely ill parent (56.1%) or spouse or partner (25.0%) in 2011/12. Individuals applied for compassionate care benefits to take care of gravely ill child (their own child, the child of a spouse or the child of a common-law partner) in 7.3% of all cases. These proportions were consistent with those reported in 2010/11. In 2011/12, the percentage of compassionate care claimants receiving benefits was highest for individuals caring for a gravely ill spouse or partner (69.3%), followed by those caring for a mother or father (67.8%).
In June 2006, a regulatory change broadened the definition of "family member" to allow siblings, grandparents, grandchildren, in-laws, aunts, uncles, nieces, nephews, foster parents, wards and any other individuals considered family members by the gravely ill person — or his or her representative — to be eligible for compassionate care benefits. Administrative data show that the broadened eligibility resulted in additional applications in 2011/12 (the "other" and "sister or brother" categories in Table 29), representing approximately 11.6% of all compassionate care benefit applicants, an increase of 0.3 percentage points from 2010/11. Since the implementation of the broadened eligibility criteria, both the number and proportion of applicants in these two categories have increased every year.
| Type of Relationship | Distribution of Compassionate Care Claimants (%) | Percentage of Compassionate Care Claimants Receiving Benefits (%) |
|---|---|---|
| Mother or father | 56.1 | 67.8 |
| Spouse or partner | 25.0 | 69.3 |
| Other | 7.3 | 58.8 |
| Child | 7.3 | 57.3 |
| Sister or brother | 4.3 | 64.5 |
| Total | 100.0 |
4.3 Level of EI Compassionate Care Benefits
In 2012/13, the average weekly benefit for compassionate care benefits increased to $389 (+3.6 %). As mentioned in previous sections, this general increase is in line with the increase in average weekly wages and the increase in maximum insurable earnings (MIE) from 2011 to 2012. The MIE for 2012 was $45,900, up 3.8% from $44,200 in 2011.
4.4 Duration of EI Compassionate Care Benefits
On average, claimants used 4.7 weeks of compassionate care benefits or 78.3% of the maximum entitlement of 6 weeks in 2012/13. The proportion of compassionate care claimants who used all of their entitlement was 73.1% in 2012/13, slightly lower than the proportion in 2011/12 (74.0%), and 26.9% used part of their compassionate care benefits entitlement, similar to the proportion observed in 2011/12 (26.0%). Although family members can share the 6 weeks of entitlement, 97.5% chose not to do so in 2012/13, a proportion similar to that of the previous year (97.7%).
According to a recent study Footnote 119 , the main reason a claimant does not receive the entire six weeks of benefits is that the care recipient passes away while the claimant is receiving compassionate care benefits. The study also found that those caring for a spouse are more likely to use the entire six-week period than those caring for another type of family member, and those living with a gravely ill care recipient are more likely to use the entire six-week period than those who do not live with the care recipient. Finally, claimants who combine compassionate care benefits with another type of EI benefit are less likely to use the full six weeks available to them than are those who only receive compassionate care benefits.