CanadaCan I receive disability insurance benefits on top of my employment insurance benefits?
Yes, you can usually receive disability insurance benefits on top of Employment Insurance (EI) sickness benefits in Canada, because they are considered 'collateral benefits' and are not deducted from EI payments.
What the Law Says
Canadian law does not require deduction of private disability insurance benefits from Employment Insurance (EI) sickness benefits. EI legislation treats these as independent income sources.
Employment Insurance (EI) sickness benefits are paid under the Employment Insurance Act and are intended to replace a portion of lost earnings when you're unable to work due to illness or injury. Private disability insurance — whether employer-provided or individually purchased — is a separate contractual benefit.
The Employment Insurance Act does not authorize reducing EI payments because you also receive disability insurance. Unlike some other compensation schemes (e.g., workers’ compensation), EI regulations do not offset private insurance proceeds.
What Courts Have Said
The Supreme Court of Canada has established that disability insurance benefits are 'collateral benefits' — meaning they are not deducted from damages or statutory payments unless legislation specifically requires it.
The Court held that disability insurance benefits received by a wrongfully dismissed employee are not to be deducted from wrongful dismissal damages, because they arise from a separate contract and serve a different purpose — protecting the employee, not relieving the employer.
What to Do
Apply separately for EI sickness benefits through Service Canada (within 4 weeks of stopping work).
Submit your private disability insurance claim according to your plan’s requirements (e.g., medical evidence, waiting period).
Report EI income on your tax return — but note: EI sickness benefits are taxable, while most private disability benefits are not (if you paid the premiums yourself).
Keep records of all applications, approvals, and correspondence with both Service Canada and your insurer.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.