September 12, 2025 Gatineau, Quebec Employment and Social Development Canada
Today, the Canada Employment Insurance Commission announced that it has set the 2026 Employment Insurance (EI) premium rate at $1.63 per $100 of insurable earnings for employees and $2.28 for employers, who pay 1.4 times the employee rate. The 2026 rate is a one-cent decrease from the 2025 rate and a three-cent decrease from the 2024 rate. The rate is set based on the 2026 Actuarial Report on the Employment Insurance Premium Rate and its addendum, which were made available today, as well as the Commission's summary of the reports.
Each year, the Commission is responsible for setting the annual premium rate based on a seven-year break-even rate forecast by the EI Senior Actuary. The Senior Actuary's report on the 2026 EI premium rate, its addendum, and the Commission's summary of that report are available online to ensure continued transparency and accountability in the rate-setting process.
The seven-year forecast break-even premium rate of $1.63 per $100 of insurable earnings in 2026 would balance out the EI Operating Account at the end of 2032.
The 2026 premium rate for residents of Quebec covered under the Quebec Parental Insurance Plan will be $1.30 per $100 of insurable earnings, while their employers will pay $1.82 per $100 of insurable earnings.
The Commission also announced that the maximum insurable earnings for 2026 will increase to $68,900 from $65,700 in 2025. It is indexed on an annual basis and is the maximum annual income insured under the program threshold on which workers and employers pay EI premiums. The maximum annual EI contribution for a worker will increase by $45.59 to $1,123.07 (up $63.83 for employers to $ 1,572.30 per employee).
The maximum annual contribution for a worker in Quebec will increase by $35.03 to $895.70 (up $49.04 for employers to $1,253.98 per employee). EI premium rates are different for residents of Quebec because the province administers its own parental insurance plan, which is financed by Quebec workers and their employers.
Furthermore, the Premium Reduction Program, which allows employers to apply for a reduction of EI premiums if they offer qualified wage-loss plans to employees, will provide roughly $1.46 billion in premium reductions in 2026 to registered employers and their employees, shared seven twelfths and five twelfths respectively. This is in recognition of savings generated to the EI program by employer registered short-term wage-loss plans.
