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EI Premium Rates

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Canada Pension Plan (CPP), Québec Pension Plan (QPP)  and Employment Insurance (EI) - > EI rates

Employment Insurance (EI) premium rates

Year 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
maximum insurable earnings $49,500 $48,600 $47,400 $45,900 $44,200 $43,200 $42,300 $41,100 $40,000 $39,000 $39,000 $39,000
basic exemption nil nil nil nil nil nil nil nil nil nil nil nil
employee rate 1.88% 1.88% 1.88% 1.83% 1.78% 1.73% 1.73% 1.73% 1.80% 1.87% 1.95% 1.98%
employee maximum $930.60 $913.68 $891.12 $839.97 $786.76 $747.36 $731.79 $711.03 $720.00 $729.30 $760.50 $772.20
employer rate 2.632% 2.632% 2.632% 2.562% 2.492% 2.422% 2.422% 2.422% 2.52% 2.618% 2.73% 2.772%
employer maximum $1,302.84 $1,279.15 $1,247.57 $1,175.96 $1,101.46 $1,046.30 $1,024.51 $995.44 $1,008.00 $1,021.02 $1,064.70 $1,081.08
self-employed rate 1.88% 1.88% 1.88% 1.83% 1.78% 1.73% n/a n/a n/a n/a n/a n/a
EI clawback threshold (1) $61,875 $60,750 $59,250 $57,375 $55,250 $54,000 $52,875 $51,375 $50,000 $48,750 $48,750 $48,750

(1) EI clawback threshold is 1.25 x maximum insurable earnings

The 2015 maximum insurable earnings (MIE) was announced in a September 12, 2014 news release.  This is a 1.85% increase over the 2014 MIE.

Small Business Job Credit

A September 2014 Department of Finance announcement announced the introduction of a Small Business Job Credit.  This credit will apply to small businesses with total EI premiums of less than $15,000 in 2015 or 2016.  The employer premium for these firms will be $1.60 (x 1.4) per $100 of insurable earnings, reduced from $1.88 (x 1.4).  This works out to 2.24%, reduced from 2.632%, or a difference of $0.39 per $100 of insurable earnings.  The premium reduction will be in addition to the premium reduction related to Quebec's Parental Insurance Plan (QPIP).  Employee premiums remain unchanged.

EI Rate Frozen

A September 2013 Department of Finance announcement indicated  that the EI premium rate would be frozen at the 2013 level of 1.88% for 2014, and would not increase for 2015 or 2016.  The rates were previously set by the Canada Employment Insurance Financing Board (CEIFB), which has been dissolved.  A new rate-setting mechanism, which will set the EI premium rate annually at a seven-year break-even rate, will take effect in 2017.

Self-employed persons who opt into the Employment Insurance program will pay the employee rate, and are eligible only for special benefits.  The annual self-employment income required to qualify for special benefits will increase to $6,222 on January 1, 2012, up from $6,000.  See our article on employment insurance for the self-employed.

Not Everyone Pays EI

EI premiums are not payable in some employment situations.  See our article Who has to pay EI premiums?

Historical EI Premium Rates

Premium rates for earlier years can be found on the Canada Revenue Agency (CRA) web page EI premium rates and maximums.

EI Clawback

For more information on the EI clawback, see our article EI benefit repayment (EI clawback).

EI Premium Tables for Payroll Deductions

For EI premium tables for calculating payroll deductions, see the CRA publication T4032 Payroll Deduction Tables.  See the Government of Canada web  page Annual Reports on the EI Premium Rate and Maximum Insurable Earnings for more information on how the rates and insurable earnings levels are calculated.

See also our article on Take Home Pay Calculators.

Quebec Employment Insurance Rates

Quebec rates (see note)                  2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
maximum insurable earnings $49,500 $48,600 $47,400 $45,900 $44,200 $43,200 $42,300 $41,100 $40,000 $39,000
basic exemption nil nil nil nil nil nil nil nil nil nil
employee rate 1.54% 1.53% 1.52% 1.47% 1.41% 1.36% 1.38% 1.39% 1.46% 1.53%
employee maximum $762.30 $743.58 $720.48 $674.73 $623.22 $587.52 $583.74 $571.29 $584.00 $596.70
employer rate 2.156% 2.14% 2.13% 2.06% 1.97% 1.90% 1.93% 1.95% 2.04% 2.14%
employer maximum $1,067.22 $1,041.01 $1,008.67 $944.62 $872.51 $822.53 $817.24 $799.81 $817.60 $835.38

See above re 2015/2016 reduction to EI rates for small businesses.

Note:   Quebec started providing their own parental benefits beginning January 1, 2006, so their EI rates are lower.  See the article on the Quebec Parental Insurance Plan.

 

Revised: November 10, 2014

 

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