In Canada, new parents are entitled to take paid time off work to care for a newborn or newly adopted child through the maternity and parental leave programs. However, eligibility for these programs requires meeting certain criteria, including working a minimum number of insurable hours in the year leading up to the claim.
Quick Answer
To qualify for maternity and parental leave benefits in Canada, you must have worked a minimum of 600 insurable hours in the 52 weeks preceding your claim. This equates to about 12 weeks of full-time work at 40 hours per week.
How Many Weeks is 600 Hours?
600 hours of work equates to approximately 12 weeks of full-time work at 40 hours per week. Here is a breakdown:
- 40 hours per week x 12 weeks = 480 hours
- Add an additional 120 hours to reach 600 hours
So if you work full-time hours, about 3 months or 12 weeks of accumulated work should meet the 600 hour eligibility requirement for maternity/parental leave.
Eligibility Criteria Overview
Here are the key eligibility requirements to receive maternity and parental benefits in Canada:
- You must have worked at least 600 insurable hours in the 52 weeks prior to the start of your claim.
- These 600 hours can be from any combination of eligible jobs.
- Self-employed individuals must opt-in to EI special benefits and pay premiums.
- Your regular weekly earnings have decreased by at least 40% due to caring for the child.
In addition to the 600 hour rule, you must meet other criteria related to your employment status, the timing of your claim, and providing documentation. Read on for more details on how eligibility is determined.
What Counts as Insurable Hours?
Only insurable hours of work count towards the 600 hour eligibility requirement. Insurable hours include:
- Hours worked at a regular full-time or part-time job
- Hours worked at multiple part-time jobs
- Hours worked on a casual or on-call basis
- Hours worked as a paid apprentice
All insurable hours worked in the 52 weeks prior to filing your claim are included, regardless of the number of different jobs. Hours can be accrued simultaneously at concurrent jobs during the qualifying period.
What Doesn’t Count as Insurable Hours?
The following types of work hours are not considered insurable and do not count towards the 600 hours:
- Unpaid internships or volunteer work
- Self-employment income that is not EI premium-insured
- Employment as a contractor instead of employee
- Employment by a private household
- Employment outside of Canada
So be sure to factor in only eligible insurable hours from your employment when determining if you meet the 600 hour threshold.
Calculating Your Insurable Hours
To figure out your total insurable hours worked in the last 52 weeks, follow these steps:
- List all of your jobs held in the last 52 weeks leading up to your claim start date
- For each job, determine how many total weeks you worked
- For each week worked, add up the total insurable hours
- Add up the hours from all jobs to calculate your total insurable hours
You can also check your hours on your pay stubs, employee records, or by requesting an EI Record of Employment from your employer(s).
Example Calculation
Here is an example to demonstrate calculating insurable hours:
- Job A: Full-time for 50 weeks at 40 hours/week = 2,000 hours
- Job B: Part-time for 10 weeks at 20 hours/week = 200 hours
- Total insurable hours = 2,000 + 200 = 2,200 hours
Although this person worked well over 600 hours in the qualifying period, she still meets the eligibility criteria.
Special Cases
Self-Employed
Self-employed individuals in Canada can access maternity and parental benefits. But you must opt-in to pay EI premiums for the special benefits coverage.
You must have paid premiums for at least 12 months before collecting benefits. You will also need to provide documentation of reduced business activity while receiving benefits.
Adoptions
For parents who are adopting a child, the 600 hour eligibility requirement is applied differently. At least one parent must have accumulated 600 insurable hours in the 52 weeks before the child is legally placed with the parents for adoption.
Surrogacy
If using a surrogate, the 600 hours must be accrued prior to the week the child’s birth mother gives birth. The commissioning parent making the claim must meet this standard.
Working While on Leave
Once you are receiving maternity or parental benefits, you are permitted to earn limited income from other work. However, your benefits will be impacted if this additional income exceeds federal thresholds.
Here are the federal working while on claim rules:
- You can earn up to $75 per week or 25% of your weekly benefit, whichever is higher. Above this limit, your EI benefits are reduced by $1 for every $1 earned.
- After the child’s first birthday, this threshold increases. You can then earn the greater of $75 or 40% of your weekly benefit amount.
It’s important to report any additional income earned while collecting EI maternity and parental benefits to avoid issues down the road. The federal government provides an online calculator to help you determine how extra income will impact your entitlement amounts.
Minimum Benefit Periods
In addition to meeting the 600 hour eligibility requirement, you must claim maternity and parental benefits for minimum periods of time, depending on which portions you apply for.
Maternity Leave
- Minimum 15 weeks
- Can start up to 12 weeks before due date
Parental Leave
- Minimum 40 weeks (combined maternity and parental leave must total at least 40 weeks)
- Can be shared between parents; does not need to be taken consecutively
- Must be claimed within 52 weeks of birth or adoption
These are the minimum periods required by federal law. Many provinces and employers offer supplemental benefits programs that provide more flexible options.
Application Process
Here are the steps involved in applying for maternity and parental leave in Canada:
- Notify your employer – Provide written notice at least 4 weeks before your planned start date. Include expected return date.
- Submit application – Complete the online EI application and submit required documentation. Both parents can apply for parental benefits.
- Serve waiting period – There is a 1 week EI waiting period before benefits kick in. You will not receive funds during this time.
- Receive payments – After the waiting week, you will receive taxable benefit payments on a biweekly basis.
- Report income – Disclose any extra income earned while receiving benefits to avoid issues.
The entire process takes about 28 days from completing the application to receiving your first payment. You can get started on applying through your My Service Canada Account.
Amount of Benefits Paid
EI maternity and parental leave benefits pay out 55% of your average weekly insurable earnings, up to a maximum set each year. For claims initiated in 2023, the maximum weekly amount is $638.
Your specific entitlement amount will depend on your individual employment history and earnings profile in the qualifying period.
Example Benefit Calculation
- Average weekly earnings: $1,000
- 55% of $1,000 = $550
- 2022 Maximum weekly benefit: $638
- This person would qualify for the 2022 maximum of $638
Benefits are taxable income. You can choose to have taxes deducted from each payment or pay them later when filing your tax return.
Impact on Job Protection
Taking maternity or parental leave in Canada provides job protection by law. Your employer must grant you an unpaid leave absense and allow you to return to the same or comparable position after your leave.
Here are the job protection rules:
- Applies to any job held for at least 90 days
- Same or similar position with same or better pay/benefits
- Length of leave up to 18 months (or longer if your province allows it)
Employers cannot penalize or punish you for taking job-protected maternity or parental leave. Exceptions apply in certain cases, such as business closure or downsizing.
Conclusion
In summary, to receive maternity and parental benefits in Canada, you must have worked 600 insurable employment hours in the year prior to your claim. This equates to approximately 12 weeks of full-time hours. The 600 hours can accumulated through multiple jobs or contracts.
Self-employed individuals need opt-in EI coverage for the qualifying period. And certain minimum leave periods of 15 weeks for maternity and 40 weeks for parental benefits apply.
Benefits pay out up to 55% of your weekly earnings based on your specific employment history. You are also protected against job loss or punishment when you take approved leave and return to work.
With adequate work hours in Canada, new parents can take advantage of maternity and parental leave benefits to spend time with their children while maintaining financial security.
