The Canada Employment Insurance Commission has announced a small decrease in the Employment Insurance (EI) premium rate for 2025. Employees will pay $1.64 per $100 of insurable earnings, down from $1.66 in 2024, while employers will contribute $2.30, a reduction from the previous rate of $2.32.
This adjustment comes as part of the Commission’s annual rate-setting process, which relies on a seven-year break-even forecast provided by the EI Senior Actuary. The goal is to ensure premium revenue covers EI expenses over the period, and to address any surplus or deficit in the EI Operating Account. For 2025, the cumulative deficit, largely stemming from the pandemic’s impact, is projected to reach $15.8 billion. The current rate is expected to balance the account by the end of 2031.
For residents of Quebec, who are covered under the province’s separate parental insurance plan, the 2025 premium rate will be set at $1.31 for employees and $1.83 for employers. The maximum annual contribution for Quebec workers will rise to $860.67, and employers will pay up to $1,204.94 per employee.
Additionally, the Commission revealed that the maximum insurable earnings for 2025 will increase to $65,700 from $63,200. This change will raise the maximum annual contribution for workers to $1,077.48 and for employers to $1,508.47.
The Premium Reduction Program, which allows employers offering qualified wage-loss plans to pay lower EI premiums, will provide approximately $1.37 billion in premium reductions next year. The savings will be shared between employers and employees.
