How workforce requalification and income replacement benefits work in Canada

By GrantHub Research Team · · Lire en français

How workforce requalification and income replacement benefits work in Canada

If you or your employees need new skills to stay employed, you might wonder: Who pays for training, and how do people pay their bills while learning? In Canada, workforce requalification and income replacement are handled through a mix of employer-focused training grants and personal income support programs. These programs are meant to work together, but each serves a different purpose.

Below is a clear breakdown of how the system works in practice, with a focus on Québec’s Impulsion‑Compétences program and how it compares to income replacement options like Employment Insurance (EI).


Workforce Requalification Programs

What “workforce requalification” means in Canada

Workforce requalification programs help workers get new or updated skills so they can:

  • Stay employed in a changing industry
  • Move into new roles within the same employer
  • Switch to a different occupation

In Canada, most requalification funding goes to employers or training promoters, not directly to individual workers. The main goal is to keep people working and help the labour market stay strong.

Impulsion‑Compétences: a Québec example

Impulsion‑Compétences is a Québec workforce program run by the Commission des partenaires du marché du travail (CPMT). Many people think it is an individual benefit, but it is not.

Key facts about how it works:

  • Who applies: Only collective promoters such as sectoral committees, employer groups, or training organizations can apply. Individual workers cannot apply.
  • Who can participate: Employees, self‑employed workers, and some seasonal workers connected to the labour market.
  • Project structure: Projects usually involve at least 3 businesses.
  • Project length: Up to 24 months.
  • Funding model: Reimbursement after eligible costs are incurred.

Funding details include:

  • Up to 100% of eligible costs for training development, adaptation, and needs analysis.
  • Usually 50% of costs for delivering existing training (with some exceptions).
  • Eligible reimbursement of trainee wages up to $25/hour during training, paid to the employer or promoter.
  • No salary reimbursement for self‑employed participants — only participation-related expenses.

Impulsion‑Compétences supports workforce requalification through employers and collective projects, not by sending income replacement cheques to workers.


Income Replacement Benefits

Why income replacement is separate

Training grants and income replacement are two different systems. Training programs cover the cost of skills development. Income replacement programs help people pay for living expenses while they are not working full‑time.

In most of Canada, personal income support during retraining comes from Employment Insurance (EI) or provincial programs linked to EI.

Employment Insurance (EI) during training

If a worker qualifies for EI and their training is approved by their province or territory, they can usually keep getting EI benefits while in training.

For EI regular benefits:

  • Benefit rate is 55% of average insurable weekly earnings
  • Maximum benefit is $668 per week for claims in 2024 (current rate; check for updates)
  • Benefits are time‑limited and depend on prior work history and regional unemployment rates

This is the main income replacement tool for people retraining after job loss.

Québec-specific income support programs

Québec also has programs that combine training with income support, such as short‑duration training initiatives tied to Emploi‑Québec. These are separate from Impulsion‑Compétences and are aimed at individuals rather than employers.


How Programs Work Together

Here is how workforce requalification and income replacement often interact:

  • Employed workers:
    Training is funded through employer or sector grants like Impulsion‑Compétences. Income usually continues as wages, sometimes reimbursed to the employer by the program.

  • Laid‑off or unemployed workers:
    Training is approved by the province or territory. Income replacement comes from EI during the training period.

  • Self‑employed workers:
    Training costs may be covered under certain programs, but income replacement is limited. Impulsion‑Compétences does not reimburse self‑employed earnings.

Tools like GrantHub’s eligibility matcher can help you filter training and workforce programs by province, worker type, and industry in seconds.


Common Mistakes to Avoid

  1. Assuming Impulsion‑Compétences pays workers directly
    It does not. Funding goes to promoters or employers, not individuals.

  2. Confusing training grants with income replacement
    A training program may cover course costs but not rent or groceries. EI usually fills that gap.

  3. Overlooking wage reimbursement limits
    Even when wages are eligible, Impulsion‑Compétences caps reimbursement at $25/hour.

  4. Self‑employed workers expecting salary coverage
    Under Impulsion‑Compétences, self‑employed participants cannot claim lost income.


Frequently Asked Questions

Q: Can I apply to Impulsion‑Compétences as an individual worker?
No. Applications must be submitted by eligible collective promoters, not individual workers.

Q: Is Impulsion‑Compétences an income replacement benefit?
No. It is a workforce requalification program. Any income support is indirect, through wage reimbursement to employers during training.

Q: Can I receive EI while taking training in Canada?
Yes, if the training is approved by your province or territory, EI benefits usually continue during the program.

Q: How much does EI pay while I am retraining?
EI regular benefits pay 55% of your average insurable weekly earnings, up to $668 per week for 2024 claims.

Q: Do self‑employed workers get income support under Impulsion‑Compétences?
No. The program can cover certain participation costs, but it does not reimburse self‑employed earnings.


Next Steps

Workforce requalification and income replacement benefits in Canada are designed to complement each other, but they are rarely found in one single program. Knowing whether support goes to the employer, the training provider, or you personally makes all the difference.

GrantHub tracks hundreds of active workforce training and income support programs across Canada — including Québec‑specific options — so you can see which ones actually match your business or employment situation.

See also:

  • Training and Workforce Development Grants in Canada: Eligibility Guide
  • Federal vs Provincial Workforce Training Grants: What Canadian Employers Should Use
  • LMDA‑Funded Self‑Employment Programs in Canada: Eligibility Explained

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