EI & Academic Upgrading 2026: Get Paid to Train (Section 25 Referrals)

For most people, the term "Employment Insurance" implies "looking for work." However, in 2026, as automation reshapes the Canadian economy, Service Canada has leaned heavily into a secondary mission: Retraining.

If your current skills are becoming obsolete, the government’s priority shifts from finding you any job to helping you find a sustainable one.

The 2026 "Strategic Advantage" is that you can legally receive your weekly EI benefits while attending full-time training. Normally, full-time education renders you "unavailable for work," disqualifying you from benefits. However, through provincial "Skills Development" referrals (such as Better Jobs Ontario), you can obtain a legal waiver known as a Section 25 Referral.

This allows you to treat your education as your "job," maintaining your $729/week checks while the government covers your tuition. As part of our comprehensive Employment Insurance Master Guide, this article outlines the 2026 grant limits (up to $28,000) and how to justify your retraining plan to Service Canada.

1. The "Permission to Train" Rules

Can I go to school while receiving EI in Canada? Yes, but you must proceed through one of two distinct regulatory paths.

Path A: Self-Funded (The Risky Path)

You pay for the training yourself.

• The Catch: You must prove you are still "ready and willing" to work. If a job offer comes up that conflicts with your class schedule, you must be willing to drop the course. Service Canada often views this as "unavailable," putting your benefits at risk.

Path B: Referred Training (The Secure Path)

You obtain a formal "referral" from a designated provincial authority (e.g., Better Jobs Ontario, WorkBC, Alberta Supports).

• The Benefit: Once referred under Section 25 of the EI Act, you are deemed unemployed and available. This legal status allows you to stop your job search completely and focus 100% on your studies while keeping your full EI benefits.

2. 2026 Provincial Training Grants: The "Big Money" List

Each province manages a "Labor Market Development Agreement" (LMDA) fund. These are not loans; they are non-repayable grants designed to cover tuition, books, and living costs.

Ontario: Better Jobs Ontario (Formerly Second Career)

• Maximum Funding: Up to $28,000.
• Coverage: Tuition, books, transportation, and a basic living allowance (up to $500/week) if your EI benefits run out.
• 2026 Eligibility: Expanded to include gig workers, newcomers, and those laid off due to automation. If you are a student managing these funds, we highly recommend opening one of the Best Student Bank Accounts to avoid monthly fees on your grant deposits.

Alberta: Training for Work / Alberta Supports

• The Mechanism: Alberta uses "Counsel to Counsel" referrals.
• The Benefit: If an Alberta Supports counselor approves your "Service Plan," they send the digital referral directly to Service Canada.

Atlantic Canada: Skills PEI / Training NS

• The Strategy: These provinces focus heavily on "Short-Term Training" (under 52 weeks). High-priority sectors (Healthcare, Trades) are almost guaranteed approval in 2026.

3. Technical Approval Strategies (The "Section 25" Edge)

Approvals are not automatic. You must prove your case. Here are the technical criteria used by case officers in 2026.

1. The "In-Demand" Justification Hack

You cannot use EI to train for a hobby or a dying industry.

• The Requirement: You must prove the new career has a labor shortage.
• The Strategy: Use the Government of Canada Job Bank Trend Tool. Search for your target job title. If the outlook is rated "3 Stars" (Good) for 2026–2027, print this page. It is your primary evidence for approval.

2. The "Section 25" Shield

Many claimants make the mistake of starting school before talking to the province.

• The Trap: If you report "Training" on your EI report without a code on file, your benefits will be suspended for investigation.
• The Move: Secure your provincial funding approval first. Once the province sends the Section 25 Administrative Code to Service Canada, your file is flagged as "Approved Training." This acts as a "Shield" against job search requirements, allowing you to attend classes 40 hours a week without penalty.

3. The Canada Training Credit (CTC) "Double-Up"

• The Asset: Most Canadians aged 26–65 have a $250/year credit accumulating in their CRA account (Lifetime limit: $5,000).
• The Strategy: This credit covers 50% of eligible tuition. If your provincial grant does not cover the full cost of a specialized certificate, use your CTC on your 2026 tax return to claim a refundable tax credit for the difference.

4. Academic Upgrading: The "Free" Foundation

If you lack Grade 12 Math or English for a college program, do not waste your grant money on these prerequisites.

• The Resource: Search for "Literacy and Basic Skills (LBS)" or "Academic Upgrading" at your local college (e.g., Seneca, SAIT, BCIT).
• The Benefit: These programs are almost always 100% government-funded separately from Better Jobs Ontario. Completing this before your main application demonstrates "commitment," which significantly boosts your chances of getting the big $28,000 grant later. Additionally, students in these programs often qualify for Free Wi-Fi Programs to help with remote learning costs.

4. Summary Table: Training Options While on EI

Frequently Asked Questions (FAQ)

Q: Does going to school extend my EI claim?

A: No. You generally only receive the weeks you originally qualified for (14 to 45 weeks). However, if your EI runs out before your training ends, provincial programs like Better Jobs Ontario can switch you to a "Living Allowance." If you are taking a longer university program, you may need to switch to OSAP Funding once your EI is exhausted.

Q: Can I take an online course?

A: Yes, provided the institution is a "Designated Learning Institution" (DLI). In 2026, most accredited online diplomas from community colleges are fully eligible for EI referrals.

Q: Can I use this for a Master's degree?

A: Rarely. These programs are designed for "Vocational Training" (Trades, Diplomas) that leads directly to a job. A Master's degree is often viewed as "Academic Research" and is difficult to justify as a "Return to Work" necessity.

Q: What is the age limit for retraining?

A: There is no upper age limit. Whether you are 25 or 55, if you are a "laid-off worker" (including those displaced by technology), you are eligible for retraining support.

About the Author

Jeff Calixte (MC Yow-Z) is a Canadian labour market researcher and digital entrepreneur specializing in government benefit data and cost-of-living support. As the founder of CanadaPaymentDates.ca and BetterPayJobs.ca, Jeff helps newcomers, students, and workers navigate the Canadian social safety net—from tracking CRA payment schedules to identifying entry-level employment opportunities.

Sources

• Employment Ontario: Better Jobs Ontario - Eligibility and Funding
• Service Canada: EI and Training - Section 25 Referrals
• Canada Revenue Agency: Canada Training Credit (CTC) Guide

Note

Employment Insurance (EI) eligibility and benefit rates are determined by Employment and Social Development Canada (ESDC). Policies regarding earnings exemptions, severance, and training referrals are subject to change. All data in this guide is verified against official Service Canada circulars. We recommend confirming the status of your personal claim directly via My Service Canada Account (MSCA) or by calling the EI telephone reporting service at 1-800-206-7218.