Ads keep this website free for you.
TaxTips.ca does not research or endorse any product or service appearing in ads on this site.  Before making a major financial decision you  should consult a qualified professional.

Employment Insurance (EI) Premium Rates TaxTips.ca
Canadian Tax and
Financial Information

If you use an ad blocker, please consider a small contribution to help keep TaxTips.ca free for everyone.

Need an accounting, tax or financial advisor? Look in our Directory.  Use above search box to easily find your topic!   Stay Connected with TaxTips.ca!
Home
What's New
Calculators
Personal Tax
Business
Sales Taxes
Financial Freedom
Financial Planning
RRSP RRIF TFSA
Real Estate
Investing
Seniors
Disabilities
Canada
Alberta
British Columbia
Manitoba
Ontario
Quebec
Saskatchewan
Atlantic Provinces
Territories
Federal Budget
Prov/Terr Budgets
Statistics etc.
Glossary
Site Map
Directory
Advertise With Us
Contact Us/About Us
Links & Resources
Personal Tax   ->   Business   ->   Canada Pension Plan (CPP), Quebec Pension Plan (QPP)  and Employment Insurance (EI) -> EI rates

Employment Insurance (EI) Premium Rates

The EI premium rate is frozen at $1.58 per $100 of insurable earnings for 2021 and 2022, as announced by the government on August 20, 2020, in conjunction with the announcement of 3 new benefits to replace Canada Emergency Response Benefit (CERB).  This is so that workers and businesses would not face increased costs due to the additional expenses resulting from the pandemic.  If not for these temporary measures, the 2022 rate would have been $1.81, according to the EI Senior Actuary.

Maximum insurable earnings (MIE) for 2022 is $60,300, up 7.1% from $56,300 in 2021.  

Quebec rates - see below

Year Maximum
Insurable
Earnings
(MIE)
Employee
Rate
Employee
Maximum
Employer
Rate
Employer
Maximum
Self-
Employed
Rate
Self-
Employed
Minimum
Earnings
(1)
EI
Clawback
Threshold

(2)
2022 $60,300 1.58% $952.74 2.212% $1,333.84 1.58% $8,092 $75,375
2021 56,300 1.58% 889.54 2.212% 1,245.36 1.58% 7,555 70,375
2020 54,200 1.58% 856.36 2.212% 1,198.90 1.58% 7,279 67,750
2019 53,100 1.62% 860.22 2.268% 1,204.31 1.62% 7,121 66,375
2018 51,700 1.66% 858.22 2.324% 1,201.51 1.63% 6,947 64,625
2017 51,300 1.63% 836.19 2.282% 1,170.67 1.63% 6,888 64,125
2016 50,800 1.88% 955.04 2.632% 1,337.06 1.88% 6,820 63,500
2015 49,500 1.88% 930.60 2.632% 1,302.84 1.88% 6,645 61,875
2014 48,600 1.88% 913.68 2.632% 1,279.15 1.88% 6,515 60,750
2013 47,400 1.88% 891.12 2.632% 1,247.57 1.88% 6,342 59,250
2012 45,900 1.83% 839.97 2.562% 1,175.96 1.83% 6,222 57,375
2011 44,200 1.78% 786.76 2.492% 1,101.46 1.78% 6,000 55,250
2010 43,200 1.73% 747.36 2.422% 1,046.30 1.73% n/a 54,000
2009 42,300 1.73% 731.79 2.422% 1,024.51 n/a n/a 52,875
2008 41,100 1.73% 711.03 2.422% 995.44 n/a n/a 51,375
2007 40,000 1.80% 720.00 2.520% 1,008.00 n/a n/a 50,000
2006 39,000 1.87% 729.30 2.618% 1,021.02 n/a n/a 48,750
2005 39,000 1.95% 760.50 2.730% 1,064.70 n/a n/a 48,750
2004 39,000 1.98% 772.20 2.772% 1,081.08 n/a n/a 48,750

(1) This is the minimum net self-employment earnings that must have been earned in the previous year in order to claim benefits.

However, special temporary measures are lowering this amount to $5,289 for claims established between September 26, 2021 and September 24, 2022.

The amount of net earnings in 2020 was set at $5,000 effective January 3, 2021, to be eligible for benefits under the self-employed program in 2021, until September 2021.  See EI benefits for self-employed people on the Canada.ca website.

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

See our article on EI for the Self-Employed.

The 2022 rates are outlined on the 2022 Employment Insurance Premium Rate page.

EI Basic Exemption

Although there is no basic exemption for employment insurance, if an employee's insurable earnings are $2,000 or less during any year, their EI premiums are refunded in whole.

Maximum Insurable Earnings (MIE) Calculation

Employment Insurance Act s. 4

The MIE is indexed to the annual percentage increase in the average weekly earnings of the industrial aggregate in Canada, as published by Statistics Canada.  The 2022 % increase is calculated as:

the average for the 12-month period ending April 30, 2021

divided by

the average for the 12-month period ending April 30, 2020

This % increase is then multiplied by the prior year MIE calculated before rounding, and is then rounded down to the nearest multiple of one hundred dollars.

EI Break-Even Rate

EI rates were previously set by the Canada Employment Insurance Financing Board (CEIFB), which was dissolved.  A new rate-setting mechanism, which sets the EI premium rate annually at a seven-year break-even rate, took effect in 2017.  

EI for Self-Employed

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 increases annually, as shown in the above table.  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?

EI Premium Reduction Program For Employers

Employers who provide their employees with a short-term disability plan may be able to pay less than the 1.4 x employee rate that most employers pay.  See EI Premium Reduction Program - For Employers.

Historical EI Premium Rates

Premium rates for current and 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.

Small Business Job Credit - 2015/2016 Only

A September 2014 Department of Finance announcement announced the introduction of a Small Business Job Credit.  This credit applied to small businesses with total EI premiums of less than $15,000 in 2015 or 2016.  The employer premium for these firms was $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 was in addition to the premium reduction related to Quebec's Parental Insurance Plan (QPIP).  Employee premiums remain unchanged.

Quebec Employment Insurance Rates

Year Maximum
Insurable
Earnings (MIE)
Employee
Rate
Employee
Maximum
Employer
Rate
Employer
Maximum
2022 $60,300 1.20% $723.60 1.680% $1,013.04
2021 56,300 1.18% 664.34 1.652% 930.08
2020 54,200 1.20% 650.40 1.680% 910.56
2019 53,100 1.25% 663.75 1.750% 929.25
2018 51,700 1.30% 672.10 1.820% 940.94
2017 51,300 1.27% 651.51 1.778% 912.11
2016 50,800 1.52% 772.16 2.128% 1,081.02
2015 49,500 1.54% 762.30 2.156% 1,067.22
2014 48,600 1.53% 743.58 2.140% 1,041.01
2013 47,400 1.52% 720.48 2.130% 1,008.67
2012 45,900 1.47% 674.73 2.060% 944.62
2011 44,200 1.41% 623.22 1.970% 872.51
2010 43,200 1.36% 587.52 1.900% 822.53
2009 42,300 1.38% 583.74 1.930% 817.24
2008 41,100 1.39% 571.29 1.950% 799.81
2007 40,000 1.46% 584.00 2.040% 817.60
2006 39,000 1.53% 596.70 2.140% 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.

The 2022 rates are outlined on the 2022 Employment Insurance Premium Rate page.

Revised: September 15, 2021

 

Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved.  See Reproduction of information from TaxTips.ca

Facebook  | Twitter  |  See What’s New, stay connected with TaxTips.ca by RSS or Email
The information on this site is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information on this web site to your best advantage. 
Please see our legal disclaimer regarding the use of information on our site, and our Privacy Policy regarding information that may be collected from visitors to our site.