For 2026, employees outside Quebec pay EI premiums of 1.63 for every 100 dollars of insurable earnings, up to $68,900 of earnings, so the maximum employee premium is $1,123.07. Employers pay 1.4 times the employee amount, up to $1,572.30 per employee. Quebec's rate is lower at 1.30. These are the CRA's figures as of October 2026.
EI premiums are the Employment Insurance deductions Canadian employers take from employees' pay, plus the employer's own share. They fund EI benefits such as regular benefits when someone loses their job. If you run payroll in Canada, you deduct them every pay period until an employee reaches the yearly maximum.
EI premium rates and maximums for 2026
| Outside Quebec | Quebec | |
|---|---|---|
| Maximum annual insurable earnings | $68,900 | $68,900 |
| Employee rate per 100 dollars | 1.63 | 1.30 |
| Maximum annual employee premium | $1,123.07 | $895.70 |
| Maximum annual employer premium | $1,572.30 | $1,253.98 |
The rate is a fixed percentage of the employee's insurable earnings, which the CRA publishes as an amount per 100 dollars. The employer's premium is 1.4 times the employee's, which is why the employer maximum is higher than the employee maximum.
The 2027 figures are already out
The CRA has published the 2027 numbers, so you can plan next year's payroll now.
| 2027 | Outside Quebec | Quebec |
|---|---|---|
| Maximum annual insurable earnings | $70,800 | $70,800 |
| Employee rate per 100 dollars | 1.64 | 1.29 |
| Maximum annual employee premium | $1,161.12 | $913.32 |
| Maximum annual employer premium | $1,625.57 | $1,278.65 |
Outside Quebec the rate edges up from 1.63 to 1.64, while Quebec's edges down from 1.30 to 1.29. The maximum insurable earnings rise from $68,900 to $70,800, so higher earners will pay premiums for longer into the year.
How the rate has moved
The CRA's table goes back years, and it shows how small and steady the changes usually are.
| Year | Maximum insurable earnings | Rate outside Quebec | Maximum employee premium |
|---|---|---|---|
| 2027 | $70,800 | 1.64 | $1,161.12 |
| 2026 | $68,900 | 1.63 | $1,123.07 |
| 2025 | $65,700 | 1.64 | $1,077.48 |
| 2024 | $63,200 | 1.66 | $1,049.12 |
| 2023 | $61,500 | 1.63 | $1,002.45 |
| 2022 | $60,300 | 1.58 | $952.74 |
| 2021 | $56,300 | 1.58 | $889.54 |
| 2020 | $54,200 | 1.58 | $856.36 |
| 2019 | $53,100 | 1.62 | $860.22 |
The rate has stayed in a narrow band, but the maximum insurable earnings climb every year. That's why the maximum premium keeps rising even when the rate falls, as it did between 2024 and 2025.
What counts as insurable earnings
Insurable earnings are the pay that premiums, and later benefits, are worked out on. Service Canada says they include most kinds of pay from employment, such as wages, tips, bonuses and commissions, and that the Canada Revenue Agency decides which types of earnings are insurable. If you pay tips or commissions through payroll, check how the CRA treats them before you assume they're outside EI.
Insurable earnings are also capped. Once an employee's insurable earnings for the year with you reach the maximum, $68,900 in 2026, there's nothing more to deduct for that employee, and the employer's share stops too.
Employers in British Columbia run payroll under provincial rules as well, and our guide to the BC Employment Standards Act sets out wages, hours, leave and termination.
How to calculate EI premiums
- Work out the employee's insurable earnings for the pay period.
- Multiply by the employee rate for the year: 1.63 per 100 dollars outside Quebec in 2026, or 1.30 in Quebec.
- Deduct that amount from the employee's pay.
- Work out the employer's share as 1.4 times the employee premium.
- Stop deducting once the employee reaches the maximum annual premium for their employment with you.
The maximums apply per employer. The CRA defines maximum annual insurable earnings as the most on which the employer and employee pay premiums in a year for their employment with that employer, so someone with two jobs can hit the maximum with each.
What the premiums pay for
The same insurable earnings figure drives benefits. Service Canada says that for most people, EI regular benefits are 55% of average insurable weekly earnings, up to a maximum. With maximum yearly insurable earnings of $68,900 in 2026, the most someone can get is $729 a week. When an employee leaves, the Record of Employment you issue tells Service Canada their insurable hours and earnings.
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Common EI premium mistakes
- Using last year's rate after January 1. The rate and maximum change every year, so update payroll software before the first pay run of the year.
- Forgetting the employer share. Your cost is 1.4 times what you deduct from the employee, on top of their pay.
- Applying the rest-of-Canada rate to Quebec employees, or the other way round.
- Carrying on deducting after an employee hits the yearly maximum with you.
EI alongside other payroll deductions
EI is one of three main deductions for Canadian employers, alongside income tax and the Canada Pension Plan. Our guide to CPP contributions covers the pension side, and our T4 slip guide explains how the year's EI premiums are reported.
My verdict
EI premiums are one of the simpler parts of Canadian payroll: one rate, one maximum and a fixed 1.4 multiplier for the employer. The detail that trips people up is the maximum, which is per employer and resets every January. Put the 2026 and 2027 figures into your payroll software now, and remember Quebec has its own lower rate.
Premiums are one part of employing people in Alberta, and our guide to Alberta employment standards covers the wider rules on hours, leave and ending a job.
Frequently asked questions
What is the EI premium rate for 2026?
Outside Quebec, the employee rate is 1.63 for every 100 dollars of insurable earnings. In Quebec it's 1.30. These are the CRA's figures as of October 2026.
What is the maximum EI premium for 2026?
The maximum annual employee premium is $1,123.07 outside Quebec and $895.70 in Quebec, on maximum insurable earnings of $68,900.
How much does the employer pay for EI?
The employer pays 1.4 times the employee's premium. For 2026 the maximum annual employer premium is $1,572.30 outside Quebec and $1,253.98 in Quebec.
What are the EI rates for 2027?
The CRA has published 2027 figures: maximum insurable earnings of $70,800, a rate of 1.64 outside Quebec and 1.29 in Quebec.
Do tips and bonuses count for EI premiums?
Service Canada says insurable earnings include most kinds of employment pay, such as wages, tips, bonuses and commissions, and the CRA decides which types of earnings are insurable.
When do I stop deducting EI premiums?
When the employee reaches the maximum annual premium for their employment with you. For 2026 that's $1,123.07 outside Quebec, on $68,900 of insurable earnings.
Why is the EI rate lower in Quebec?
Quebec has its own separate EI premium rate, set lower than the rate for the rest of Canada. The CRA publishes a separate Quebec table with its own maximum premiums.
