Canada Is Extending The CERB For Another 4 Weeks & Then The EI Transition Is Happening
Change is coming!
This is pretty big news! Those who could use some income will keep getting money for a little while longer. A CERB extension has been approved for another four weeks which takes the benefit into September. After that, people will be transitioned onto a new Employment Insurance program.
On August 20, Canada announced that the CERB will be extended for an additional four weeks to a maximum of 28 weeks.
There was another extension before this that bumped up the eligibility periods to 24 weeks and that was set to expire on August 29.
It will go past that date now and well into September so people can get $2,000 for that additional four week period.
There are more supports in place once the CERB runs out, including the transition to a simplified EI program that will happen on September 27.
When it comes to how that will work, there are some important things to know.
The majority of Canadians who got the CERB through Service Canada will be automatically transitioned to EI once the 28 weeks have been paid, while some will have to apply.
Those who got it with the Canada Revenue Agency will have to apply for this income program through Service Canada.
That can be done online and then bi-weekly reports have to be submitted to show eligibility to continue getting paid.
Remember, these benefits are taxable so taxes will be deducted from payments.
A minimum unemployment rate of 13.1% is being used for all regions in Canada, which helps calculate how much of the benefit people get.
Since more Canadians are claiming EI because of the COVID-19 pandemic, the premium rate has been frozen for two years.
Usually, the unemployment rate is used to calculate how much would be received, and there would be an increase with so many people getting on it.
After the extension, senior officials said that about three million people could transition to the new EI program and about one million could go to new recovery benefits that are being put in place.
Since the CERB started on March 15, there have been $69.37 billion paid out to 8.61 million applicants.
So far, 4.1 million applicants have gone back to work.