Gig workers in Canada cannot typically access traditional Employment Insurance (EI) benefits because they are self-employed rather than employees. However, this protection gap is changing. As of September 2023, the federal government introduced new rules allowing self-employed gig workers (like Uber and DoorDash drivers) to voluntarily opt into a new EI protection plan. This means your gig income may now qualify you for limited EI-like coverage if you register and contribute, though the rules and coverage amounts differ significantly from traditional employee EI. Traditional Employment Insurance is designed for employees with an employer who pays half their EI premiums. Since gig workers are self-employed, they don't have an employer making contributions on their behalf. The CRA treats gig income (from platforms like Uber Eats, DoorDash, Instacart, and Skip) as self-employment income, not employment income. This creates a real gap in financial protection. If you lose access to work due to injury, illness, or market changes, there's no automatic safety net like employees enjoy. Starting in 2024, Service Canada began accepting applications for the new self-employed EI program.
No, traditional EI is only for employees with an employer. However, you can now voluntarily opt into a new self-employed EI plan that provides limited sick leave benefits (up to 2 weeks per year) if you meet the income threshold and register with Service Canada.
Yes. Self-employed workers pay both the employee and employer portions of CPP, totaling roughly 11.9% of your net self-employment income. This is higher than the ~5.95% employees contribute, but it's deductible from your income tax.
Gig income is added to your total income for the year, which determines your marginal tax rate. Higher gig income can push you into a higher bracket, meaning you pay more tax on that income plus any other earnings you receive.
The CRA is aware of payment platforms like Uber and DoorDash, and these companies report income data. Failing to report gig income can result in penalties, interest, and potential audit. All self-employment income must be reported on your tax return.
Yes, because you're responsible for paying both income tax and CPP contributions, with no employer helping. Many gig workers set aside 20-30% of gross income to cover taxes and should consider quarterly instalments if their annual gig income is substantial.