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Public Service

7. Will a reset of the employment insurance coverage seniority affect Labor Insurance old-age benefits?

Labor insurance and employment insurance are two different types of social insurance systems, and the manner in which the premiums are calculated and assessed as well as the benefits are quite different, however the Bureau of Labor Insurance is still responsible for undertaking both types of insurance coverage. Unemployment benefits are one of the benefits under employment insurance, and according to the Employment Insurance Act, the length of insurance enrollment (for employment insurance) of an insured person should be reset if he or she has received the maximum benefits allowed. That is, the length of insurance enrollment is the number of years the insured person has participated in employment insurance coverage and paid the premiums required by law, and is independent from the length of insurance coverage for Labor Insurance. Therefore, resetting the length of insurance enrollment for employment insurance will not affect the determination of Labor Insurance enrollment seniority for old-age benefits. In the future, when the insured person retires, if he or she satisfies the requirements for receiving old-age benefits under Labor Insurance, then he or she has the right to claim these old-age benefits.

Last Update:2016-02-23
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