EI premiums are mandatory payroll deductions that fund Canada’s Employment Insurance program which is the safety net that pays benefits when you lose your job, get sick, or take parental leave. Both employees and employers contribute every pay period. The rates and maximums are set annually by the EI Commission and apply to all insurable employment across Canada (with a reduced rate in Quebec, which runs its own parental plan).
For 2026, the employee rate fell slightly from $1.64 to $1.63 per $100, while the Maximum Insurable Earnings ceiling rose from $65,700 to $68,900 which means the annual maximum premium is a bit higher than last year despite the lower rate.
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 |
How EI premiums are calculated
The formula is simple:
Annual EI premium = insurable earnings × rate ÷ 100
Insurable earnings cap at the MIE ($68,900), so anything above that is excluded. Here is the calculation for a $55,000 salary:
- Annual EI: $55,000 × 1.63 ÷ 100 = $896.50
- Bi-weekly deduction (26 pays/year): $34.48
- Semi-monthly deduction (24 pays/year): $37.35
Your employer deducts this amount based on each pay period’s earnings. Once your cumulative deductions hit the $1,123.07 annual maximum, the employer stops automatically, no action required on your part. Your salary calculator can show the exact EI line on a simulated paycheque.
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 so 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).
When do EI deductions stop for the year?
For employees earning more than the $68,900 MIE ceiling, EI deductions stop mid-year once the $1,123.07 maximum is reached. The table below shows the approximate final pay period for bi-weekly payroll:
| Annual salary | Approximate last EI deduction (bi-weekly pay) |
|---|---|
| $68,900 | Late December (deducted all year) |
| $80,000 | November |
| $100,000 | September |
| $120,000 | July |
| $150,000 | June |
| $200,000+ | May |
The exact date shifts slightly depending on your pay schedule start date. Your employer’s payroll system tracks the running total and stops deductions automatically so you will simply notice the EI line disappear from your paycheque for the remainder of the year.
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 |
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. See Revenu Québec for current QPIP premium rates.
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):
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. See how much EI you can receive and the full EI eligibility guide for benefit amounts and eligibility hour requirements.
EI premium tax credit
EI premiums are not tax-deductible (they do not reduce your taxable income), but they do qualify for a non-refundable federal tax credit at the 15% rate. This credit appears automatically on Schedule 1 of your T1 return and reduces the federal income tax you owe:
The credit is non-refundable which means it can reduce your tax to zero but cannot generate a refund on its own. Most provinces offer an equivalent provincial credit at their lowest provincial rate.
Self-employed EI contributions
Self-employed Canadians can voluntarily opt in to EI special benefits which cover sickness, maternity, parental, and caregiving claims, but not regular (layoff) 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) |
See the self-employed EI guide for registration details and waiting period rules.
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 Canada Employment Insurance Commission (CEIC) based on the projections of the Senior Actuary. Rates have been relatively stable since the COVID-period increases. For historical CPP contribution rates over the same period, see CPP contribution rates.
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 as it reduces your balance owing or increases your refund. This is one reason why understanding your paycheque deductions throughout the year can help you anticipate your tax refund at filing time.