Digest of Benefit Entitlement Principles Chapter 25 – Section 10

25.10.0 Benefit repayment (clawback)

A benefit repayment (also referred to as a clawback) is applied to the EI benefits paid to a claimant when their net income, as defined in the Income Tax Act, exceeds 1.25 times the maximum yearly insurable earnings. General information about benefit repayment and Benefit Repayment Adjustment Calculation can be found in section 1.9.6 of this Digest.

There are no special considerations set out in the act or regulations with respect to benefit repayment and Work-Sharing benefits. Therefore, the provisions of section 4 of the EIA apply to Work-Sharing benefits paid. However, such a repayment adjustment does not apply to a claimant who has not been paid any regular benefits, including Work-Sharing benefits, in the 10 years prior to the relevant taxation year.