What percentage of income reduction is required to apply for EI?

The requirement for applying for Employment Insurance (EI) is based on a 40% reduction in income. To qualify for EI benefits, an individual must demonstrate that their earnings have been reduced significantly due to a number of factors, such as loss of employment or a decrease in working hours. A 40% reduction indicates a substantial impact on the individual’s financial situation, thus making them eligible to seek assistance through the EI program.

This specific percentage was established to ensure that only those experiencing a significant loss of income can access benefits, thereby focusing the support on individuals who truly need financial assistance during periods of unemployment or reduced hours. A reduction of this magnitude helps to filter out those who may not be in as much financial distress, ensuring that the program supports those in genuine need.