Pacific Ledger
How to Calculate Your EI Payment When You Work Part-Time (Canada 2025)
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Working Part-Time While on EI: How Your Payment Is Calculated
Losing your job or having your hours reduced can be stressful when you’re managing bills, family responsibilities, and daily expenses. The good news is that if you’re receiving Employment Insurance (EI), you can still work part-time and keep a portion of your benefits.
This guide explains:
How your EI benefit amount is calculated
How part-time or side income affects your payment
A real example with numbers
A simple formula you can use for any EI period
1. How EI Benefits Are Calculated
EI pays 55% of your average insurable earnings, up to the annual maximum.
2025 maximum insurable earnings: $63,200
Maximum weekly EI benefit: 55% × ($63,200 ÷ 52) = $668.46 per week
If your previous salary is below the maximum, EI uses your actual average weekly earnings.
Example:Previous annual income: $55,000Average weekly earnings: $55,000 ÷ 52 = $1,057.69Weekly EI benefit: 55% × $1,057.69 = $581.73 per week
Base weekly EI: $581.73
2. Multiply by the Number of Weeks Claimed
EI is paid every two weeks.
$581.73 × 2 = $1,163.46 gross EI (before taxes)
3. How EI “Working While on Claim” Deductions Work
If you work part-time or earn income during an EI period, EI deducts only a portion of those earnings:
You keep 50 cents of EI for every $1 you earn, until you reach 90% of your previous weekly pay.
If you earn more than that 90% level, EI deducts your earnings dollar-for-dollar.
Continuing the example:Previous weekly earnings: $1,057.6990% threshold: 0.9 × $1,057.69 = $951.92 per week
Reported earnings for the 2-week period: $905Weekly equivalent: $905 ÷ 2 = $452.50 (below the threshold)
EI clawback: 50% × $905 = $452.50
4. Final EI Payment After Clawback
Gross EI (2 weeks): $1,163.46Minus clawback: $452.50
Final EI payment: $710.96
Note: EI benefits are taxable. The government may withhold approximately 10%, so the deposit may be lower.
The EI Payment Formula You Can Use
EI Payment = (Weekly EI × Number of Weeks)
− (0.5 × Reported Earnings up to the 90% threshold)
− (1.0 × Amount above the 90% threshold)
Summary of the Example
Item | Amount |
Previous income | $55,000/year |
Weekly EI benefit | $581.73 |
2-week gross EI | $1,163.46 |
Part-time earnings | $905 |
EI clawback (50%) | $452.50 |
Final EI payment | $710.96 |
Important EI Tips for Canadians
Always report all earnings, even small amounts.
EI is taxable, so expect a slightly lower deposit.
You can work part-time or freelance while on EI.
If you earn more than 90% of your previous weekly income, EI may pay $0 for that period — but your claim continues.
Final Thoughts
Understanding how EI is calculated gives you more control during uncertain times. Whether you’re taking part-time shifts, freelancing, or earning side income, knowing how the clawback works ensures there are no surprises when your next EI payment arrives.
