Calculate your Employment Insurance contribution. Quebec workers pay a reduced 1.31% rate because RQAP covers parental benefits.
Quick answer: In 2026, employees outside Quebec pay 1.63% EI on the first $68,900 of insurable earnings — a maximum of $1,123.07. Quebec employees pay 1.30% (max $895.70). Employers pay 1.4× the employee rate.
What this means: Premiums stop once you hit the maximum insurable earnings ceiling. Self-employed Canadians don’t pay EI by default but can opt in for special benefits.
What to do next: Enter your income below. The calculator handles 2025 and 2026 rates, plus Quebec QPIP context.
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Employment Insurance (EI) premiums are mandatory deductions from employment income for most Canadian employees and employers. For 2026, the employee EI premium rate is 1.63% of insurable earnings up to the maximum insurable earnings (MIE) of $68,900, giving a maximum employee premium of $1,123.07. Employers pay 1.4 times the employee rate. Self-employed individuals may opt into the EI program for access to special benefits but pay both the employee and employer shares, totalling 1.4 times the employee rate plus the employer contribution.
The maximum employee EI premium for 2026 is $1,123.07. This is reached when insurable earnings equal or exceed the maximum insurable earnings of $68,900. Once the maximum is reached, no further EI deductions are taken for the remainder of the calendar year. The employer’s maximum premium is 1.4 times the employee maximum: $1,572.30 per employee. In Quebec, where a separate provincial parental insurance plan (QPIP/RQAP) operates, the federal EI employee rate is reduced to 1.31% and the employer rate proportionately.
Employee EI premium = insurable earnings x 1.63%, subject to the maximum insurable earnings cap of $68,900. Insurable earnings include gross employment income, most employer-paid taxable benefits, and vacation pay. They exclude severance pay, retiring allowances, tips not controlled by the employer, and income from self-employment (unless the individual has opted in). The premium is deducted each pay period at the prescribed rate; employers stop deductions for the year once an employee’s cumulative insurable earnings for the year reach $68,900.
Employers pay 1.4 times the employee rate: 1.63% x 1.4 = 2.282% of insurable earnings. The employer’s annual maximum per employee is $1,572.30 in 2026. Employers with experience-rated payroll accounts may be eligible for premium reductions if they provide eligible short-term disability plans that reduce EI claims. The premium reduction program is administered by Service Canada and requires employers to apply and maintain qualifying private plans.
Quebec employees are covered by the federal EI program for regular benefits but receive parental benefits through the Quebec Parental Insurance Plan (QPIP/RQAP) instead of the federal EI special benefits. As a result, EI premiums for Quebec employees are lower: the employee rate is 1.31% (vs 1.63% outside Quebec) and the employer rate is 1.834% (vs 2.296%). Quebec employees also pay QPIP premiums separately at 0.494% on earnings up to $98,000, with employers paying 0.692%.
Self-employed Canadians may voluntarily register for EI special benefits (maternity, parental, sickness, compassionate care, and family caregiver) by registering with Service Canada. Once registered, they pay both the employee and employer premium shares: 1.63% + 2.282% = 3.912% of net self-employment income up to the MIE. The premium is paid through the T1 return, not by payroll deduction. To collect benefits, the self-employed individual must have registered at least 12 months before the claim and cannot deregister until January 1 of the second calendar year after registering.
The 2026 EI employee rate of 1.63%, maximum insurable earnings of $68,900, and maximum employee premium of $1,123.07 are confirmed from Service Canada’s EI premium rates and maximums page. The employer premium multiplier of 1.4 is set by regulation under the Employment Insurance Act, s.68(1). Quebec rates are confirmed from the Canada Revenue Agency T4032 Payroll Deductions Tables for 2026. Self-employed opt-in rules are confirmed from the Employment Insurance Act s.152.01 to s.152.22. These values were verified in April 2026.
| Year | Employee rate | Max insurable earnings | Max employee premium |
|---|---|---|---|
| 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 EI Commission. The rate is revised based on the EI program’s seven-year break-even calculation under the Employment Insurance Act, s.66 to s.66.3.
Employee EI premiums are reported in Box 18 of the T4 slip issued by the employer. The EI insurable earnings are reported in Box 24 (or Box 14 if they are the same as employment income). Employees who worked for more than one employer may have over-deducted premiums if both employers each separately capped premiums at the MIE. CRA calculates the over-deduction on Schedule 10 of the T1 return and issues a refund where applicable. Employers remit both the employee and employer EI premiums monthly (or semi-monthly for larger payrolls) to the Receiver General.
Not all employment is insurable under EI. The following categories are non-insurable and exempt from EI premiums: employment of a person in a business or profession where the worker controls more than 40% of the employer corporation’s voting shares; certain family employment where the worker’s terms are not similar to arm’s length terms; employment by a religious order; some employment where the contract is primarily for artistic work on a one-off basis; and casual employment for purposes other than the employer’s usual business. The Canada Revenue Agency makes a ruling on insurability through Form CPT1 when employment status is disputed.
Employees who paid EI premiums and had employment income below the premium refund threshold receive a refund of premiums through the T1 return. For 2026, employees whose insurable earnings were less than $2,000 may claim a refund of all EI premiums paid (refundable tax credit at line 45000). This provision prevents workers in very short-term or seasonal positions from paying premiums without being able to qualify for EI benefits (which require 420 to 700 insurable hours depending on the regional unemployment rate). The refund is dollar-for-dollar and is not subject to the basic personal amount or other credits.
The EI premium structure is the same for all employer sizes; there is no small-business exemption from employer EI premiums. However, employers may reduce their EI premium rate if they maintain a qualifying short-term disability plan under the Employment Insurance (Premium Reduction Program) Regulations. To qualify, the plan must provide weekly indemnity benefits equal to at least 55% of insurable earnings for at least 15 weeks per year. Employers with qualifying plans receive a premium reduction of $0.21 per $100 of insurable earnings (reducing the employer rate from $2.296% to approximately $2.086%). Employees of qualifying employers also receive a proportional reduction. Applications are submitted to Service Canada and are renewed annually.
If an employee worked for two or more employers in the same year and each employer separately deducted EI premiums to the annual maximum, the total deducted may exceed the $1,123.07 maximum. Schedule 10 of the T1 calculates the over-deduction and generates a refund of the excess. The same process applies for CPP over-deductions. Over-deductions are common for employees who change jobs mid-year, as the new employer has no record of premiums paid by the prior employer and begins deductions from zero. CRA applies the Schedule 10 refund automatically; no special form or claim is required beyond completing the schedule.