EI Contribution Rates 2027 & 2026 Canada | Premiums & Maximum

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 on each paycheque until the yearly maximum is reached. 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, employees pay $1.63 per $100 of insurable earnings up to maximum insurable earnings (MIE) of $68,900. For 2027, the rate is $1.64 per $100 up to $70,800, confirmed by the Canada Employment Insurance Commission on September 14, 2026 (ESDC release). The table below compares the two years.

EI Contribution Rates 2027 & 2026

Key numbers

Source: Canada Revenue Agency – EI premium rates and maximums. 2027 rates confirmed by the Canada Employment Insurance Commission and take effect January 1, 2027. View source

How EI premiums are calculated

The formula is simple:

Annual EI premium = insurable earnings × rate%

Insurable earnings cap at the MIE ($70,800), so anything above that is excluded. Here is the calculation for a $55,000 salary in 2027:

• Annual EI: $55,000 × 1.64% = $902.00
• Bi-weekly deduction (26 pays/year): $34.69
• Semi-monthly deduction (24 pays/year): $37.58

Your employer deducts this amount based on each pay period’s earnings. Once your cumulative deductions hit the $1,161.12 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 (2027)

For 2027, earnings above $70,800 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 2027 MIE ceiling of $70,800, EI deductions stop mid-year once the 2027 maximum of $1,161.12 is reached. The table below shows the approximate final pay period for bi-weekly payroll in 2027:

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.

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. The Quebec rates (the rates for the rest of Canada are in the key numbers table above):

Source: CRA, EI premium rates and maximums.

Quebec employees also pay QPIP premiums separately. See the QPIP premium rates announcement and our QPIP page.

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 in 2026 is calculated only on the first $68,900 of insurable earnings (the 2026 maximum), for a maximum of $729 a week. 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 qualify for a non-refundable federal tax credit at the lowest federal bracket rate, which is 14% for 2026. This credit is claimed on line 31200 of your 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. Provinces and territories outside Quebec offer an equivalent credit, claimed on Form 428; Quebec residents claim theirs through Revenu Quebec.

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:

Premiums are paid with your income tax return, based on your self-employment income for the whole calendar year, starting with the year you enter the agreement. In Quebec, maternity, paternity, parental and adoption benefits come from QPIP rather than EI, which is why the Quebec premium is lower (Service Canada, premiums for self-employed people).

See the self-employed EI guide for registration details and waiting period rules.

EI premium rate history

Source: Canada Revenue Agency – EI premium rates and maximums. View source

Rates are set annually by the Canada Employment Insurance Commission (CEIC) based on the projections of the Senior Actuary. For historical CPP contribution rates over the same period, see CPP contribution rates.

What happens if you overpay EI premiums

An overpayment can happen if:

• You changed employers mid-year and both employers deducted EI premiums, collectively exceeding the annual maximum
• You lived in Quebec and also worked outside Quebec in the same year, so EI was deducted at the rate for the rest of Canada (the CRA recalculates this when you file, and first uses any extra for the Quebec parental insurance premiums you owe)

The CRA calculates any employee EI overpayment when you file, and either refunds it or uses it to reduce your balance owing. It is claimed on line 45000 of your return (the CRA calculates it if you don’t), and 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.

Related pages

• Maternity and parental benefits
• Why Is My Paycheque Different This Week?
• EI Sickness Benefits Canada
• EI Caregiving Benefits Canada
• Why Did My EI Payment Stop?
• CPP contribution rates
• Employment Insurance Canada Guide
• Self-Employed EI Canada