In Canada, maternity leave policies are among the most generous in the world.
With the introduction of the 18-month extended maternity leave, many are wondering about the possibility of earning money during this period.
This article delves into the specifics of working while on maternity leave in Alberta and the implications it might have on your Employment Insurance (EI) benefits.
Can You Work While on Maternity Leave in Alberta?
Yes, as of 2018, maternity benefits in Canada are part of the Working While on Claim program.
If you earn money while receiving EI (maternity or parental) benefits, you can retain $0.50 of the benefits for each $1 you earn, up to 90% of your previous weekly earnings.
If your earnings exceed this cap, your EI benefits will be deducted dollar for dollar.
Source: Alberta.ca – Maternity and Parental Leave
Maternity Leave Benefits in Canada
- To qualify for maternity leave benefits, one must have been employed for over 15 weeks full-time before applying.
- In 2022, the maximum weekly EI amount for standard parental benefits is 55% of the average insurable weekly earnings, equating to $638 per week.
- For extended parental benefits (18-month leave), it’s 33% of average insurable weekly earnings, which is $383 per week.
Earning Potential During Maternity Leave
The EI clawback only considers EARNED income.
Non-earned income, such as rental income, dividend stocks income, and capital gains, are not included.
Money earned this way does not get deducted from weekly EI benefits. Some popular ways to earn during maternity leave include selling items online, participating in surveys, or starting a small business.
Government Benefits During Maternity Leave
In 2023, the Canada Child Benefit offers:
- $6,997 per year ($583.08 per month) for children under 6.
- $5,903 per year ($491.91 per month) for children aged 6 to 17.
- An additional $3,173 per year is available if the child qualifies for the Child Disability Benefit.
FAQs on Maternity Leave Earnings in Alberta
Can I earn from rental or dividend income during maternity leave without affecting my EI?
Yes, non-earned income like rental income, dividend stocks income, and capital gains are not deducted from your EI benefits.
How much can I earn before my EI benefits are affected?
You can retain $0.50 of the benefits for each $1 you earn, up to 90% of your previous weekly earnings.
Balancing Work and Maternity in Alberta
While the Canadian government offers generous maternity leave benefits, the possibility of earning during this period can be tempting for many.
However, it’s essential to understand the implications on your EI benefits and make informed decisions.
In Summary
- You are allowed to work while on maternity leave in Alberta, Canada
- Maternity benefits in Canada are part of the Working While on Claim program since 2018.
- Earnings during maternity leave can affect your EI benefits, with a cap set at 90% of your previous weekly earnings.
- Non-earned income, such as rental income and dividends, does not affect EI benefits.
- The Canada Child Benefit offers additional financial support during maternity leave.
