New CERB transition benefits

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Update: The government approved the CERB replacement programs on October 2, 2020. Parts of this post have been updated. Read the latest on this blog post.

The government has announced some big new programs to help people transition from the Canada Emergency Response Benefit (CERB), as that program winds down.

Extension to CERB

CERB has been extended for an additional 4 weeks, to 28 weeks in total. If you applied for the earliest period starting March 15, 2020, your eligibility will now end on September 26, 2020. You can read more about CERB here.

With CERB ending, the intent is that eligible employees who are still affected by COVID-19 transfer to EI. Self-employed individuals will transfer to the new Canada Recovery Benefit.

EI enhancements

For employees and self-employed individuals who opted in to EI, there's been a number of changes to enhance eligibility. Technical changes were made so that employees with 120 insurable hours over the past 12 months can now qualify - which is a major reduction from the previous 420-700 hour requirement.

In addition, EI recipients will qualify for a minimum 26 weeks and will receive a minimum benefit of $500 per week.

Essentially, if you worked for about 3 weeks in the past year, you'll now qualify for $500 per week for half a year.

Finally, there's good news for employees and employers. The government has frozen EI contribution rates for two years.

Canada Recovery Benefit

For workers who aren't eligible for EI - that's most self-employed holistic healthcare professionals - this new program will provide support for those affected by COVID-19. You'll receive $500 per week for up to 26 weeks.

Unlike CERB, there's no $1,000 maximum to qualify; you only have to experience a “reduction in income”. However, you'll have to repay the CRB at a rate of 50% to the extent your 2020 net income - excluding the CRB, but including other government benefits - is over $38,000.

For example, if your self-employment income is $40,000 for 2020 and you received $4,000 of CRB, then you'd have to repay $1,000 of the CRB as part of your 2020 tax return.

Canada Recovery Sickness Benefit

For those who can't work because they're sick or have to self-isolate, this benefit provides $500 per week for up to 2 weeks.

Canada Recovery Caregiving Benefit

If you're unable to work because you have to care for a child or dependent because their school or daycare is closed, you may be eligible for this benefit. It pays $500 per household per week for up to 26 weeks.