Question Period Note: 2026 EMPLOYMENT INSURANCE (EI) PREMIUM RATE

What is the Employment Insurance (EI) premium rate for 2026? The Canada Employment Insurance Commission has set the EI premium rate for 2026 at $1.63 per $100 of insurable earnings. The rate is based on forecasts prepared by the EI Senior Actuary.

The Senior Actuary’s final report initially forecasted an EI premium break-even rate of $1.61 per $100 of insurable earnings. However, on September 5, 2025, the Government announced new EI-funded measures to support workers impacted by tariffs. Following these announcements, the Senior Actuary factored-in these new measures and recalculated the rate to be $1.63 per $100 of insurable earnings—which was documented in a memorandum.

This rate is one cent lower than it was in 2025. This new rate took effect on January 1, 2026.

The employer rate is 1.4 times the employee rate. For 2026, the employer rate is $2.28 per $100 of insurable earnings for each employee.

The 2026 EI premium rate remains at a near-record historical low (25 cents below its high of $1.88 in 2016).

The Government of Canada is committed to protecting and supporting workers and businesses during this period of uncertainty.

The Canada Employment Insurance Commission set the 2026 premium rate at $1.63, which is a one-cent decrease from last year’s rate.

This keeps premiums at near historically low levels (25 cents below the 2016 high of $1.88) and provides financial relief to workers and employers during these challenging times.

The maximum insurable earnings covered by the Employment Insurance program increased from $65,700 in 2025 to $68,900 in 2026, resulting in an increase to the maximum weekly EI benefit rate to $729 in 2026.

Premium Rates

EI 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 12, 2025, the Canada Employment Insurance Commission set the 2026 premium rate at $1.63 per $100 of insurable earnings. The employer rate is $2.28 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 2026 premium reduction is 33 cents, resulting in a premium rate for employees in Quebec of $1.30 per $100 of insurable earnings while their employers pay $1.82 per $100 of insurable earnings.

The 2026 Actuarial Report on the EI Premium Rate and its summary were made available online on September 12, 2025. The reports were tabled in Parliament on September 26, 2025.

Premiums Payable

Maximum Insurable Earnings (MIE) for 2026 is $68,900, an increase of $3,200 from the 2025 MIE.

Based on the MIE and premium rate, the maximum 2026 premiums paid by workers is $1,123.07 (up $45.59 from 2025), while employers pay a maximum of $1,572.30 per employee (up $63.83 from 2025).

The MIE for 2026 results in a maximum weekly benefit rate of $729 (up $34 from 2025). Employers and their employees registered in qualified wage-loss plans under the Premium Reduction Program (PRP) are estimated to receive $1.457B in premium savings for 2026.

EI Operating Account

The 2026 Actuarial Report on the EI Premium Rate projected a cumulative deficit in the EI Operating Account of $17.2B as of December 31, 2025, a slight increase of $0.2B from the cumulative deficit of $16.9B as of December 31, 2024. The increase in the cumulative deficit in 2025 is due mostly to higher unemployment resulting from the effects of US tariffs on Canadian exports, and from the implementation of temporary measures to facilitate access to EI to support workers in industries affected by tariffs.

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