Supplemental Unemployment Benefit (SUB) program

The Supplemental Unemployment Benefit (SUB) program is a plan that allows an employer to top-up an employee’s EI benefits during periods of unemployment due to various factors including a temporary stoppage of work or illness, injury or quarantine. This is not a new plan but is a potential option for employers to help cover the cost of employees’ wages.

Who is eligible?

Employers whose employees would qualify for unemployment insurance benefits and are subject to a temporary stoppage
of work.

What are the requirements for SUB plans?

The following requirements must be met:

  1. Employees must be in receipt of EI benefits related to a permitted type of unemployment.
  2. The weekly payment under a SUB plan, when added to the applicable weekly EI benefit, cannot exceed 95% of the employee’s normal weekly earnings; and 
  3. SUB plans should be registered with Service Canada. If they are not, top-up payments will be considered insurable earnings and will be deducted from an employee’s EI benefits. If employers pay employees any top-up amounts before a plan is registered, these amounts will be treated as earnings and may be deducted from the employee’s EI benefits.

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