How much EI will I get on a $40,000 salary?

How the $40K EI amount is worked out

Three numbers drive every EI regular benefit: your insurable earnings, the number of “best weeks” for your region, and the 55% rate. Insurable earnings are your gross pay, including overtime, commissions and vacation pay, up to $68,900 a year — so your whole $40,000 salary counts. Divided over the year that is $769.23 a week, and 55% of it is $423.08, which rounds to $423. You would need $68,900 or more to reach the $729 maximum, $306 a week higher than your rate.

Over a month that is about $1,833 before tax, against $3,333 of gross salary — a sizeable cut, with EI replacing 55% of gross pay and 63% of after-tax pay.

How many weeks of EI can you get on a $40,000 salary?

EI duration is read off a table in the Employment Insurance Act. Someone working full time for a year has about 2,080 insurable hours, which is past the 1,820-hour top row of the table, so they get the maximum for their region. With the 11 October to 7 November 2026 regional rates that means:

If you worked less than a full year, the number of weeks drops. The table below shows weeks of benefits (and the total before tax at $423 a week) for common work histories:

— = not enough hours to qualify in that region. Regular benefits need 420 to 700 hours depending on the rate; sickness, maternity and parental benefits need 600 hours everywhere.

What if you only worked part of the year?

EI does not divide by 52. It adds up your earnings in your best weeks — 21 weeks in Toronto right now, from 14 in high-unemployment regions to 22 where unemployment is 6% or less — and divides by that number. With a steady $40,000 salary every week is the same, so any 21 weeks give $769. But if you had worked only 19 weeks (760 hours) before losing the job, Service Canada would still divide by 21: 19 × $769 ÷ 21 = $696, and 55% of that is $383 a week instead of $423. You would also qualify for only 16 weeks of benefits in Toronto.

2026 temporary EI rules that help a $40K earner

EI Pilot Project No. 25 took effect on 11 October 2026. For claims that start by 9 October 2027, the one-week waiting period is waived, so your first week of unemployment is paid (worth $423 to you), and severance or vacation pay on separation does not delay or reduce your EI. Long-tenured workers can get up to 20 extra weeks on claims starting by 12 June 2027 — in Toronto that could take a full-year claim from 38 to 58 weeks ($24,534). And only the reason you left your most recent job is now assessed. See the waiting period and 2026 measures.

Is EI taxed on a $40,000 salary?

Yes. EI benefits are taxable income and Service Canada deducts federal and provincial income tax from every payment, but no CPP contributions or EI premiums. Annualizing a $423 weekly benefit gives $21,996 a year; at 2026 federal and Ontario rates with basic personal amounts that suggests about $23 a week withheld, leaving roughly $400. In January you receive a T4E slip; because your job income for the year is taxed separately, the real tax on your EI depends on how many months you worked — a mid-year layoff can produce a refund or a balance owing.

Maternity, parental and sickness EI on $40,000

The same $423 weekly rate applies to EI maternity, standard parental and sickness benefits, because they use the same 55% formula and the same $729 ceiling. Extended parental benefits stretch the money over more weeks at 33%, which on $40,000 is $254 a week.

Extended parental pays $689 more in total for 26 more weeks at home. Workers in Quebec get maternity and parental benefits from the Quebec Parental Insurance Plan instead of EI, and pay a lower EI premium (1.30%) as a result. See EI maternity and parental benefits and standard vs extended parental leave.

Working part-time while on EI

You can take part-time or casual work and keep part of your EI. The rule since 2018: you keep 50 cents of benefits for every dollar you earn, until your earnings reach 90% of the weekly insurable earnings your claim is based on ($692 here); above that, benefits are cut dollar for dollar. Two days a week at your old pay ($310) would reduce your $423 benefit by $155 to $268, for a total of $578 that week.

Will you have to repay EI on a $40,000 salary?

The EI “clawback” applies to regular benefits when your 2026 net income is above $86,125: you repay 30% of the lesser of your regular benefits and the excess. Take a layoff on 30 June with 12 weeks of severance ($9,231) and 26 weeks of EI for the rest of the year ($10,998 — severance is not deducted from EI for 2026 claims). Net income for the year would be about $40,229: $45,896 under the threshold, so nothing would be repaid. Maternity, parental and sickness benefits are never clawed back.

EI at neighbouring salaries

Toronto: 6.9% regional rate, 38 weeks after a full year of work. Totals before tax.

Tips if you are claiming EI on a $40K salary

FAQ

How much EI will I get on a $40,000 salary?

About $423 a week before tax in 2026: 55% of average insurable weekly earnings of $769 ($40,000 ÷ 52). After income tax is withheld, roughly $400 a week.

How much EI do I get every two weeks on $40,000 a year?

EI is paid every two weeks, so about $846 before tax, or about $800 after the estimated tax withheld.

How many weeks of EI can I get with a $40,000 salary?

It depends on your insurable hours and your region, not your salary. After a full year of full-time work: Toronto 38 weeks, Montréal 40 weeks, Vancouver 38 weeks, Calgary 38 weeks (rates for 11 October to 7 November 2026). The national range is 14 to 45 weeks.

Is EI taxable on a $40,000 salary?

Yes. Service Canada withholds income tax from each payment — about $23 a week on a $423 benefit by our Ontario estimate — and sends a T4E slip. No CPP or EI premiums are deducted from benefits.

How much maternity leave EI on $40,000?

$423 a week for 15 weeks of maternity benefits, then $423 a week for up to 35 weeks of standard parental benefits or $254 a week for up to 61 weeks of extended parental benefits (outside Quebec).

Will I have to pay back EI on a $40,000 salary?

Only if your 2026 net income exceeds $86,125, and then 30% of the lesser of your regular benefits or the excess. In our example (laid off mid-year with 12 weeks' severance) income is about $40,229, so nothing is repaid.

Related EI articles

Assumptions & sources

• Benefit rate and maximums: Canada.ca “EI regular benefits: How much you could receive” and the maternity/parental and sickness benefit-amount pages — 55% of average insurable weekly earnings; maximum yearly insurable earnings $68,900 from 1 January 2026 ($65,700 in 2025); maximum $729 a week ($695 in 2025); extended parental 33%, maximum $437.
• Best weeks (14 to 22) and the weeks you can be paid come from the regional unemployment rate: Employment Insurance Act, Schedule I, and Service Canada’s “EI Program Characteristics” for 11 October to 7 November 2026 (rates are updated every four weeks).
• 2026 temporary measures: Canada Gazette Part II, SOR/2026-203 (EI Pilot Project No. 25, in force 11 October 2026) — waiting week waived and separation money not deducted for claims starting up to 9 October 2027; up to 20 extra weeks for long-tenured workers for claims starting up to 12 June 2027; only the most recent separation assessed.
• Repayment (clawback): 30% of the lesser of regular benefits or net income above $86,125 (2026 = 1.25 × maximum insurable earnings). Premiums 2026: 1.63% of insurable earnings (Quebec 1.30%), maximum $1,123.07.
• Tax withheld is our estimate: the weekly benefit annualized through 2026 federal and Ontario tax brackets with basic personal amounts (and the Ontario Health Premium). Service Canada’s actual deduction and your final tax depend on your total income for the year. Take-home pay while working: 2026 Ontario, from our Canada salary after tax engine.