Tuesday, November 03, 2009

Freelancers will be eligible for EI benefits under new bill

Magazine freelancers will now be able to enrol in the employment insurance (EI) system and collect benefits, starting in 2011, if a new federal bill is passed. According to a Canadian Press story, the Fairness for the Self-Employed Act essentially extends the special provision of the EI system to the self-employed for the first time, including maternity, parental, adoption, medical and compassionate-care benefits. 

The bill is designed to fulfill a Stephen Harper promise during the last election and it's clearly intended to appeal to the majority of self-employed who are women.

The number of self-employed women grew 234% between 1981 and 2006. People who participate in the program will pay the same premiums as salaried employees and will be expected to pay those premiums thereafter as long as they are self-employed. And no benefits can be claimed for the first year. Freelancers would have to earn at least $6,000 through self-employment in the year before claiming.

For freelancers, the most attractive aspects are probably the maternity benefits, which give up to 15 weeks for mothers, beginning 8 weeks before birth, sickness benefits, which provide for up to 15 weeks coverage for those unable to work and compassionate care benefits of up to 6 weeks for those who have to nurse a family member who is gravely ill. Parental benefits would also be available for up to 35 weeks, taken by either parent or shared between them while looking after newborns or newly-adopted children.

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