Supplemental Unemployment Benefit Plan (SUB)

Supplemental Unemployment Benefit (SUB) plans supplement Employment Insurance (EI) benefits during a period of unemployment due to temporary stoppage of work, training, illness, injury, or quarantine. The employer’s periodic payments (as per the employer’s payroll schedule) increase the employee’s weekly earnings during periods when they are not working.

SUB plans must be registered with Service Canada. The supplement is not insurable, and EI premiums are not deducted. However, these conditions of the plan must be met:

• The employee must apply for and be in receipt of EI benefits
• The weekly SUB payment plus the weekly EI benefit rate applicable to this employment must not exceed 95% of an employee’s normal weekly earnings.

The plan must indicate the maximum number of weeks for which the SUB payments will be payable. Some plans pay benefits for varying periods based on years of service, salary, or employee groups.