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Employment Insurance (EI) Premium Rates

The 2021 EI premium rate is $1.58 per $100 of insurable earnings, 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.

Maximum insurable earnings (MIE) for 2021 is $56,300, up 3.9% from $54,200 in 2020.

(1) This is the minimum self-employment earnings that must have been earned in the previous year in order to claim benefits.
(2) EI clawback threshold is 1.25 x maximum insurable earnings

See our article on EI for the Self-Employed.

The 2021 rates are outlined on the 2021 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.

Small Business Job Credit

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.

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, takes effect in 2017.  The Federal 2015 Budget indicated that this would reduce the rate from 1.88% ($1.88) in 2016 to approximately 1.49% ($1.49) in 2017.  See Lowering the EI Premium Rate in 2017 on the 2015 Budget website.  As noted above, the new Liberal government indicated that the 2017 rate would be 1.65% ($1.65) for 2017.  However, the 2017 rate is 1.63%, announced in September 2016.

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 will increase to $6,888 on January 1, 2017, 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?

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.

Quebec Employment Insurance Rates

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 2021 rates are outlined on the 2021 Employment Insurance Premium Rate page.