The Canada Employment Insurance Commission set the 2026 Employment Insurance premium rate at $1.63 per $100 of insurable earnings for employees, down one cent from 2025 rates, according to Employment and Social Development Canada.
Employers will pay $2.28 per $100 of insurable earnings in 2026, which represents 1.4 times the employee rate. The commission announced the rates represent a three-cent decrease from 2024 levels.
The commission sets annual premium rates based on a seven-year break-even rate forecast by the EI Senior Actuary, according to the announcement. The seven-year forecast break-even premium rate would balance the EI Operating Account by the end of 2032.
Maximum earnings threshold increases
The maximum insurable earnings for 2026 will increase to $68,900 from $65,700 in 2025, according to the commission. This threshold represents the maximum annual income on which workers and employers pay EI premiums and is indexed annually.
The maximum annual EI contribution for workers will increase by $45.59 to $1,123.07, while employers will pay up to $1,572.30 per employee, an increase of $63.83 from 2025 levels.
Quebec rates differ
Quebec residents covered under the Quebec Parental Insurance Plan will pay $1.30 per $100 of insurable earnings in 2026, while Quebec employers will pay $1.82 per $100, according to the announcement. EI premium rates differ for Quebec residents because the province operates its own parental insurance plan financed by Quebec workers and employers.
The maximum annual contribution for Quebec workers will increase by $35.03 to $895.70, while employers will pay up to $1,253.98 per employee, an increase of $49.04.
Premium reduction program continues
The Premium Reduction Program will provide approximately $1.46 billion in premium reductions in 2026 to registered employers and their employees, according to the commission. The program allows employers to apply for EI premium reductions if they offer qualified wage-loss plans to employees.
The savings are shared between employers and employees at seven-twelfths and five-twelfths respectively, in recognition of savings generated to the EI program by employer-registered short-term wage-loss plans, according to the announcement.
