What the premium is based on
Premiums are charged on insurable earnings, which include most employment compensation such as wages, tips, bonuses and commissions. The CRA determines which types of earnings are insurable, and insurable taxable benefits are included. Premiums stop once insurable earnings reach the yearly maximum of $68,900.
Outside Quebec the 2026 employee rate is 1.63%, for a maximum of $1,123.07. Quebec has a different rate because of its own parental insurance plan, so this entry covers Ontario and other provinces.
The employer share
Employers normally pay 1.4 times what the employee pays. At the maximum, that is $1,572.30 per employee, against $1,123.07 withheld from the employee. The employer’s portion is a cost of employing someone and is not deducted from the employee’s pay.
Some employers qualify for a reduced rate through a registered wage-loss plan. If you think this applies, check your plan and CRA’s current guidance before changing any calculation.
An illustrative example
Suppose an employee earns $60,000 in 2026, all insurable. The employee’s premium is 1.63% of $60,000, or $978.00. The employer’s share is 1.4 times that, or $1,369.20, so the business remits $2,347.20 for this employee. Added to the matching CPP described in the CPP contributions entry, this is part of why the cost of a hire exceeds the wage. These numbers are round and illustrative.
An employee earning $90,000 would pay the full $1,123.07 and the employer $1,572.30, because earnings above $68,900 are not insurable.
If you work for yourself
Self-employed people are not automatically in the EI program. You can opt in by entering into an agreement with the Canada Employment Insurance Commission for at least 12 months, which gives access to EI special benefits for time away from your business, such as parental benefits. Premiums are paid yearly with your income tax return, using Schedule 13, at $1.63 per $100 of self-employment income up to the same $1,123.07 maximum. Once you have received benefits you must keep paying while self-employed.
If you are an owner who controls more than 40% of a corporation’s voting shares, you are treated as self-employed for this program. Talk to your accountant before opting in, because the premium is a real, recurring cost and the rules for eligibility are specific.
Sources & editorial notes
Sources checked October 24, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- EI premium rates and maximumsCanada Revenue Agency
- Self-employed benefits: PremiumsCanada Revenue Agency / Service Canada
- Self-employed benefits: Who can qualifyService Canada
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.