Question Period Note: 2025 Employment Insurance (EI) Premium Rate

What will be the Employment Insurance (EI) premium rate in 2025?

• The Government is committed to ensuring that the EI Program continues to meet the needs of employers and workers while remaining financially sustainable.

• An EI premium rate of $1.64 for 2025 is near historically low levels, based on forecasts prepared by the EI Senior Actuary.

• EI premium rates are lower for Quebec residents because of that province’s parental insurance plan. For 2025, employees residing in Quebec will pay $1.31 and their employers will pay $1.83.

• According to the Senior Actuary, the projected cumulative deficit in the EI Operating Account for the end of 2024 has decreased from $18.8B a year ago to $18.2B.

Premium Rates

• Premium rates are set according to a seven-year forecast break-even rate that will result in a balance of $0 in the EI Operating Account at the end of that seven-year period. The forecast amount of EI benefits to be paid over the next seven years will determine the total amount of EI premiums that need to be collected from employees and employers. The EI Senior Actuary calculates the EI premium rate using economic projections, including forecast unemployment rates and growth in earnings.

• On September 13, 2024, the Canada Employment Insurance Commission set the 2025 premium rate at $1.64 per $100 of insurable earnings. The employer rate is $2.30 per $100 of insurable earnings, or 1.4 times the employee rate.

• EI premium rates are lower for Quebec residents because the province administers its own parental insurance plan, known as the Quebec Parental Insurance Plan (QPIP). The 2025 premium reduction is 33 cents, with premium rates for employees in Quebec is set at $1.31 per $100 of insurable earnings.

• The 2025 Actuarial Report on the EI Premium Rate and its summary are available online as of September 13, 2024. They will be tabled in Parliament on September 27, 2024.

Premiums Payable

• Maximum Insurable Earnings (MIE) for 2025 will be $65,700, an increase of $2,500 from the 2024 MIE. Based on the MIE and premium rate, the maximum 2025 premiums paid by workers will be $1,077.48 (up $28.36 from 2024), while employers will pay a maximum of $1,508.47 per employee (up $39.70 from 2024). The increased MIE for 2025 will also result in a higher maximum weekly benefit rate of $695 in 2025 (up $27 from 2024). Employers and their employees registered in qualified wage-loss plans under the Premium Reduction Program (PRP) are estimated to receive $1.365B in premium savings for 2025.

EI Operating Account

• The 2025 Actuarial Report indicates that the cumulative deficit of the EI Operating Account on December 31, 2024, originally projected to be $18.78B in the 2024 Actuarial Report, has been revised down to $18.23B. This deficit is projected to decrease to approximately $15.84B as of December 31, 2025.

“While Canadians are getting to work equipping themselves with the skills, know-how and tools they need to get ahead – and stay ahead – in a changing global economy, our government is making real progress toward building an innovative, accessible, and forward-looking workforce that supports our workers and their families.

Today, we’re building on that progress by further supporting our strong safety net. The Canada Employment Insurance Commission has announced the 2025 EI premium rate at $1.64 per $100 of insurable earnings. This is lower than this year’s rate of $1.66 and 24 cents lower than the 2013 and 2016 rates of $1.88. This is putting more money in the pockets of Canadian workers and employers and is evidence that our plan is bringing meaningful results to Canadians across the country.”

Statement by Minister of Employment, Workforce Development and Official Languages Randy Boissonnault regarding the 2024 EI premium rate - Canada.ca