Max insurable: $68,900.00
Employee Premium
$1,059.50
Employer Premium (1.4x)
$1,483.30
Total EI Cost
$2,542.80
What is the EI premium rate for 2025?
The 2025 EI employee premium rate is 1.64% of insurable earnings up to $65,700, for a maximum annual premium of $1,077.48. In Quebec, the rate is reduced to 1.312% (max $862.38) because QPIP covers maternity and parental benefits that EI covers in other provinces. Your employer pays 1.4 times your premium.
What is QPIP and how does it differ from EI?
QPIP (Quebec Parental Insurance Plan) provides maternity, paternity, parental, and adoption benefits to Quebec workers. Outside Quebec, these benefits are provided through EI. QPIP has its own premium of 0.494% for employees on insurable earnings up to $98,000. QPIP benefits are generally more generous than EI parental benefits, with higher replacement rates and more flexible options.
Can self-employed people opt into EI?
Yes. Self-employed Canadians can voluntarily opt into EI to receive special benefits (maternity, parental, sickness, caregiving) but not regular unemployment benefits. To opt in, register with Service Canada. Once registered, you must wait 12 months before claiming benefits. The premium rate is the same as employees, but you do not pay the employer portion.
What are EI maximum insurable earnings?
For 2025, the maximum insurable earnings are $65,700. Any income above this amount is not subject to EI premiums. This means once your earnings exceed $65,700 in a year, no further EI premiums are deducted. If you have multiple employers in a year, you may overpay EI -- the overpayment is refunded when you file your tax return.
Why does the employer pay 1.4 times the employee rate?
The Employment Insurance Act requires employers to contribute 1.4 times the employee premium. This means for every $1 you pay in EI, your employer pays $1.40. Some employers may qualify for a reduced employer rate if they offer a qualified short-term disability plan that meets EI requirements. This EI premium reduction can save employers significant amounts.
CRA-Aligned: EI and QPIP rates for the 2025 tax year. Employer rates may vary with approved premium reduction programs.
How Employment Insurance premiums are calculated and who pays them
How much is the EI premium for employees?
For 2025, employees pay an EI premium rate of 1.64% on insurable earnings up to $65,700 per year. This means the maximum annual employee premium is $1,077.48. Premiums are deducted automatically from each paycheque. Once you hit the annual maximum, no more premiums are taken for the rest of the year.
How much does the employer pay?
Employers pay 1.4 times the employee premium rate, which works out to 2.296% of insurable earnings. On the maximum insurable earnings of $65,700, the employer pays up to $1,508.47 per year. This means for every dollar the employee pays in EI premiums, the employer pays $1.40.
Is Quebec different?
Yes. Quebec has its own parental insurance plan (QPIP), so Quebec employees pay a lower EI premium rate of 1.31% and a separate QPIP premium. The total cost for Quebec workers is similar but split between two programs. Employers in Quebec also pay a reduced EI rate plus their share of QPIP.
Do self-employed people pay EI?
Self-employed individuals are not required to pay EI premiums and are not eligible for regular EI benefits. However, you can opt into the EI program for special benefits like maternity, parental, sickness, and compassionate care benefits. If you opt in, you pay the employee premium rate on your self-employment income but your employer portion is not required.
Can you get an EI premium reduction?
Employers who provide a qualifying short-term disability plan to their employees can apply for an EI premium reduction. The reduction is typically 5/12 of the employee premium rate. Both the employer and employees benefit from the lower rate. The plan must meet specific requirements set by the Employment Insurance Commission.
What happens if you overpay EI premiums?
If you worked for more than one employer during the year and your total EI premiums exceeded the annual maximum of $1,077.48, the overpayment is refunded when you file your tax return. The CRA automatically calculates the refund based on the T4 slips from your employers. You do not need to apply separately for the refund.
How do EI premiums show up on your tax return?
EI premiums paid generate a non-refundable tax credit at the lowest federal rate (15%). On your T4 slip, the EI premiums are shown in Box 18. You claim this credit on line 31200 of your tax return. For the maximum premium of $1,077.48, the federal tax credit is about $162.
CRA-Aligned: Based on 2025 CRA rates and thresholds. For personal advice, speak to a qualified accountant or tax professional.
Disclaimer: This calculator provides estimates based on current CRA rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant before making financial decisions. Read our terms
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