EI Sickness Benefits: What Employers and Employees Should Know

Current as of October 2026. Government programs, tax rules and prices change. Check the official sources listed at the end of this page before making a decision, and confirm details with a licensed advisor.

What EI sickness benefits are

EI sickness benefits are a federal income replacement program run by Service Canada. They are meant for people who cannot work for medical reasons, which Service Canada describes as illness, injury, quarantine or any medical condition that prevents someone from working. Think of the employee recovering from surgery, the parent sidelined by a bad back, or someone working through a longer illness with the help of their doctor and pharmacy.

For many small and mid-sized employers, EI is the first safety net employees think of. It is useful, but it is also fairly modest, which is why many businesses add a group short-term disability plan to their benefits package.

How much EI sickness pays and for how long (as of October 2026)

As of October 2026, Service Canada lists the key numbers below. These figures are set federally and can change each year, so always check the current amounts on canada.ca before relying on them.

• Benefit rate: 55% of insurable earnings, up to a maximum of $729 a week in 2026.
• Duration: up to 26 weeks of sickness benefits.
• Waiting period: one unpaid week before benefits begin, which Service Canada compares to an insurance deductible.
• First payment: about 28 days after applying, if the person is eligible and has provided everything required.
• Taxes: EI benefits are taxable income, reported using a T4E slip.
• Family supplement: some lower-income families with at least one child under 18 may qualify for a supplement, which cannot push total weekly payments above the maximum.

Who qualifies

According to Service Canada, an employee generally needs to meet all of the following to qualify for EI sickness benefits as of October 2026. Service Canada handles every claim individually, so employees should confirm their own situation directly with them.

• They are employed in insurable employment.
• Their normal weekly earnings have dropped by more than 40%.
• They have at least 600 hours of insurable employment in their qualifying period (usually the 52 weeks before the claim starts).
• They have a medical certificate from a doctor or approved medical practitioner, and any fee for it is their own cost.
• They cannot work because of sickness, injury or quarantine, but would otherwise be available to work.

Applying: what the employer and employee each do

Service Canada advises applying as soon as possible after stopping work, and warns that applying more than 4 weeks after the last day of work may mean losing benefits. The online application takes about an hour. While receiving benefits, the employee files reports every two weeks and must declare any work or earnings.

The employer's main job is the Record of Employment (ROE), which shows the person's work history. Electronic ROEs go straight to Service Canada, which helps avoid delays at an already stressful time. It is also worth telling the employee what your own sick leave and benefits plan provides, because those payments can change what EI pays. The guide to benefits during a leave covers what happens to health and dental coverage while someone is off.

How EI sickness and short-term disability plans coordinate

This is where employer plans matter most. Under the EI Digest of Benefit Entitlement Principles, payments from a group wage-loss plan set up for employees of the same employer are treated as earnings and deducted from EI benefits. Paid sick leave from the employer is treated as earnings too. Payments from a plan an individual buys entirely on their own, with no employer connection, are generally excluded. In practice, if your group short-term disability plan is paying, EI sickness benefits are usually reduced or not payable for those weeks.

Employer top-up arrangements are excluded from earnings only when they meet specific regulatory conditions, so any top-up should be designed carefully with an advisor. Service Canada also suggests employees check with their employer about any paid sick leave or short-term disability plan before applying for EI.

For a side-by-side look at the two options, see short-term disability vs. EI sickness benefits. If an illness lasts beyond short-term coverage, long-term disability insurance and, in some cases, CPP disability benefits may come into the picture.

The EI Premium Reduction Program

Employers that offer a qualifying short-term disability plan can apply to pay lower EI premiums through the federal EI Premium Reduction Program. As of October 2026, Employment and Social Development Canada lists requirements that include:

• At least 15 weeks of benefits for a weekly indemnity plan.
• Benefits at least equal to what EI would pay (55% of insurable earnings, up to the yearly maximum).
• Payment beginning no later than the eighth day of disability, with an elimination period of no more than 7 days.
• Eligibility for new employees no later than the first day of the month after they complete 3 months of continuous employment.
• The plan must be the first payer, not integrated with EI.
• Employees must receive at least five-twelfths of the premium savings, and the employer applies using form NAS5022.

Where Ontario sick days fit

Ontario's Employment Standards Act gives employees who have worked for an employer for at least 2 consecutive weeks up to 3 days of unpaid, job-protected sick leave each calendar year, as of October 2026. Since October 28, 2024, employers cannot require a medical note for this leave, though they can ask for evidence that is reasonable in the circumstances. Those few days cover the cold or the migraine. EI sickness, short-term disability and an employee assistance program are what help with the longer stretches.

If you are weighing whether to add or redesign short-term disability coverage, get matched with a licensed benefits advisor who can explain how a plan would work alongside EI for your team.

Common questions

How long can someone receive EI sickness benefits?

As of October 2026, Service Canada lists up to 26 weeks of EI sickness benefits, after a one-week unpaid waiting period.

Can an employee collect EI sickness and short-term disability at the same time?

Usually not in full. Payments from a group wage-loss plan through the employer are treated as earnings and deducted from EI, and plans in the EI Premium Reduction Program must be the first payer. Service Canada makes the final decision on each claim.

Are EI sickness benefits taxable?

Yes. EI benefits are taxable income, and recipients receive a T4E slip to report them on their tax return.

Does the employee need a doctor's note for EI sickness benefits?

Yes. Service Canada requires a medical certificate signed by a doctor or approved medical practitioner, and the employee pays any fee charged for it. This is separate from Ontario's rule that employers cannot require a medical note for the 3 days of ESA sick leave.

Does GroupBenefitPlans.ca help with EI claims?

No. EI is administered by Service Canada, so employees should apply and ask questions there. GroupBenefitPlans.ca introduces employers to licensed advisors who can explain group short-term disability and other benefits.

GroupBenefitPlans.ca is a referral and information service. Advice and coverage are provided by the licensed professional and relevant providers. An enquiry does not activate insurance.