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Canada’s federal government committed to improving the current EI program in the 2021 budget. For many years, there have been proposals to change EI. The COVID-19 epidemic underscored the need for a change in policy even more. They have announced that the EI Sickness Benefits will be extended from 15 to 26 weeks beginning in 2022. This means an authorized absence may be prolonged up to a full 26 weeks under the modified program, which should take effect later in 2022.
EI has a Premium Reduction Program for plan sponsors that provide private short-term benefits to their workers (PRP). As an incentive to manage absences outside of EI, the PRP offers sponsors and employees a premium reduction.
There are currently planning consultations to improve the PRP for Plan Sponsors. These discussions will continue indefinitely. If you are already receiving the PRP, you will be able to continue doing so after the EI modifications take effect in late 2018.
A short-term sickness benefits plan is an excellent way for your organization to manage absences and be more effective.
If you don’t have a program like this in place, you should seriously consider getting one – or keeping your current program if you already have one. Here are some of the reasons why:
If you have any questions regarding sickness benefits or if you want to learn more about employees and Sickness Benefits, please feel free to contact us. We have a team of experts that are ready to help you understand how it works and how it can be beneficial for you.