What defines "insurable earnings"?

Insurable earnings refer specifically to the income upon which Employment Insurance (EI) premiums are calculated. This includes the various forms of income that employees receive which are subject to EI contributions, providing a form of social security in case of unemployment, sickness, or other covered situations.

In the context of Employment Insurance, insurable earnings ensure that workers contribute to the EI fund based on their total earnings, thus allowing them to access benefits when needed. It is essential for employees to ensure that their earnings are correctly classified as insurable to ensure they receive the appropriate coverage.

The other options do not accurately capture the definition of insurable earnings as recognized in Canadian law. Income not exceeding a certain limit does not specifically relate to the concept of insurable earnings, as it implies a threshold without directly addressing EI premiums. Income received from contracts only would exclude other forms of earnings such as salaries or wages that also contribute to insurable earnings. Unreported income sources are not included in the calculation of insurable earnings for Employment Insurance, as only documented and reported income is considered for these purposes.