The Canada Emergency Response Benefit (CERB) did its part in alleviating the financial hardships of displaced Canadian workers during the pandemic. Since CERB is over, you can try getting Employment Insurance (EI) if you still need income support. The government wants to transition as many as possible to the EI system.
The switch to new relief programs for unemployed Canadians has begun. Former CERB recipients who can qualify for the revamped EI can still receive $500 per week in taxable benefit for at least 26 weeks. The new scheme commences on September 27, 2020.
The EI system is now the sole delivery mechanism for employment benefits. If you do not qualify for EI, the option is to apply for new temporary Recovery Benefits. The reasons for claiming any of the three income-support benefits must be COVID related.
More flexible programs
According to Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion, the federal government will continue to put Canadians first. The new programs are more nimble and flexible. For the EI, there’s the “working-while-you-claim” rule. A claimant can receive part of the EI benefits and earn from work at the same time.
Applications for the recovery benefits are open at the My Account section of the Canada Revenue Agency (CRA). You could receive $500 weekly for up to 26 weeks if you qualify for any three of the income support measures.
The Canada Recovery Benefit (CRB) is for people directly affected by the pandemic but can’t get EI. For workers who are sick or must isolate due to COVID-19, the Canada Recovery Sickness Benefit (CRSB) is available. If you have to care for a child or family member still due to coronavirus, a household can apply for the Canada Recovery Caregiving Benefit (CRCB).
Boost savings
Instead of spending their CERB, many Canadians saved the pandemic money to increase their household savings. If you have free cash or money you don’t need in the near term, consider dividend investing to boost your savings. Right now, your best choice is Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ).
The $25.27 billion company is now the most valuable energy company in Canada. Erstwhile king Suncor Energy is has become second fiddle to the largest oil and gas producer in the country. Furthermore, CNR is a Dividend Aristocrat for having increased its dividends for 19 straight calendar years.
Unlike Suncor, CNR did not slash dividends, despite the massive headwinds. Investors are happy the payout is steady. The energy stock pays a lucrative 8.02% dividend. If you invest $20,000, your passive income will be $1,604. Any amount of investment will double in nine years.
The stock is down 45.23% year to date ($21.40 per share), although analysts forecast a 110% appreciation to $45 in the next 12 months. COVID-19 is hurting the oil refining business but not companies with substantial natural gas assets. Expect CNR to outperform refiners.
No increases in premium rates
Aside from the relaxed rules, the government is freezing EI insurance premium rates for two years. Hence, Canadian workers and businesses shouldn’t worry about additional expenses.
