EI premiums are deducted from every paycheque for employed Canadians. Understanding your contribution rate tells you exactly what is being deducted and when it stops for the year.
EI Contribution Rates 2026
Key numbers
| Detail | 2026 Amount |
|---|---|
| Maximum insurable earnings (MIE) | $68,900 |
| Employee premium rate | $1.63 per $100 of insurable earnings (1.63%) |
| Maximum annual employee premium | $1,123.07 |
| Employer premium rate | $2.282 per $100 (1.4× employee rate) |
| Maximum annual employer premium | $1,572.30 |
Employee EI premiums by income level (2026)
| Annual insurable earnings | Annual EI deduction | Monthly deduction |
|---|---|---|
| $20,000 | $326.00 | $27.17 |
| $30,000 | $489.00 | $40.75 |
| $40,000 | $652.00 | $54.33 |
| $50,000 | $815.00 | $67.92 |
| $60,000 | $978.00 | $81.50 |
| $68,900 (max) | $1,123.07 | $93.59 |
| $100,000+ | $1,123.07 (capped) | $93.59 |
Earnings above $68,900 are not insurable — no EI premiums are deducted on amounts above the MIE ceiling. Once you hit the annual maximum, deductions stop for the rest of the year (your paycheque slightly increases).
Employer EI premiums
Employers pay 1.4 times the employee premium rate. This ratio reflects the EI system design: for every dollar an employee contributes, the employer contributes $1.40.
| Detail | Amount |
|---|---|
| Employer rate | $2.282 per $100 of insurable earnings |
| Maximum annual employer premium per employee | $1,572.30 |
| Small business EI Premium Reduction | Available if employer has approved wage-loss plan |
Why 1.4×? The employer multiplier is built into the EI Act to reflect that employers benefit from the EI system (worker replacement is funded) and to cross-subsidize benefit types like maternity/parental leave where individual employees may claim more than they contributed.
Quebec EI rates (reduced rate for QPIP)
Quebec employees pay a reduced federal EI rate because Quebec operates its own Quebec Parental Insurance Plan (QPIP), which covers maternity and parental benefits separately:
| Detail | Outside Quebec | Quebec |
|---|---|---|
| Employee rate | $1.63 / $100 | $1.30 / $100 |
| Employer rate | $2.282 / $100 | $1.820 / $100 |
| Max employee premium | $1,123.07 | $895.70 |
| Max employer premium | $1,572.30 | $1,253.98 |
Quebec employees also pay QPIP premiums separately (approximately $0.494/$100 for employees, $0.692/$100 for employers in 2026).
How MIE affects your EI benefit entitlement
Your potential EI benefit is directly tied to your Maximum Insurable Earnings. The weekly EI benefit = 55% of your average insurable weekly earnings (up to the maximum):
| MIE | Maximum weekly EI benefit | Maximum annual EI (45 weeks) |
|---|---|---|
| $68,900 (2026) | $668/week | $30,060 |
This ceiling means that even if you earn $150,000/year, your EI benefit is calculated only on the first $68,900 of insurable earnings, giving you a maximum weekly benefit of $668.
Self-employed EI contributions
Self-employed Canadians can voluntarily opt in to EI special benefits:
| Detail | Amount |
|---|---|
| Premium rate (if opted in) | Same as employee rate: $1.63/$100 |
| Employer portion | Not required — self-employed pay only the employee share |
| Maximum annual premium | $1,123.07 |
| Benefits available | EI Sickness, Maternity, Parental, Caregiving |
| Benefits NOT available | Regular EI (layoffs do not apply to self-employed) |
To opt in: register with CRA on your T1 return (complete the self-employment section). You must remain registered for at least one full calendar year before accessing benefits.
EI premium rate history
| Year | Employee rate | MIE | Max employee premium |
|---|---|---|---|
| 2020 | $1.58 | $54,200 | $856.36 |
| 2021 | $1.58 | $56,300 | $889.54 |
| 2022 | $1.58 | $60,300 | $952.74 |
| 2023 | $1.63 | $61,500 | $1,002.45 |
| 2024 | $1.66 | $63,200 | $1,049.12 |
| 2025 | $1.64 | $65,700 | $1,077.48 |
| 2026 | $1.63 | $68,900 | $1,123.07 |
Rates are set annually by the EI Commission based on the break-even rate needed to fund projected benefits. Rates have been relatively stable since the COVID-period increases.
What happens if you overpay EI premiums
Overpayment occurs if:
- You changed employers mid-year and both employers deducted EI premiums, collectively exceeding the annual maximum
- You worked in both Quebec and another province in the same year
CRA automatically calculates and refunds any employee EI overpayment as part of your tax return. You do not need to claim it separately — it appears on line 45000 (EI overpayment) of the T1 return and reduces your balance owing or increases your refund.
EI Premium Reduction program for employers
Employers who offer a group wage-loss replacement plan (short-term disability, salary continuance) to their employees may qualify for the EI Premium Reduction. Eligible employers pay a reduced employer premium rate — typically around 1.302× the employee rate rather than the standard 1.4×.
The reduction applies when the employer’s plan meets ESDC standards (at least equal to EI sickness benefits in duration and amount). Many group benefit plans qualify. The reduction must be approved by ESDC — employers apply through the Employer Premium Reduction program. The annual savings per employee with a registered plan can be over $100/year in employer EI premiums.