EI Premium Rate 2027: New Rate and Maximums Explained

Quick answer: The EI premium rate 2027 is $1.64 per $100 of insurable earnings for workers outside Quebec, up one cent from $1.63 in 2026. Employers pay $2.30. Maximum insurable earnings rise to $70,800, so the most a worker pays in the year is $1,161.12. Quebec workers pay $1.29 per $100.

Key takeaways

The Canada Employment Insurance Commission set the 2027 Employment Insurance (EI) premium rate at $1.64 per $100 of insurable earnings, a one-cent rise from 2026.
The earnings ceiling rises to $70,800 (from $68,900), so the most a worker can pay in 2027 is $1,161.12, up $38.05.
Employers pay 1.4 times the worker rate, or $2.30 per $100, for a maximum of $1,625.57 per employee.
Workers living in Quebec pay a lower $1.29 per $100 because the province runs its own parental insurance plan.
The maximum weekly EI benefit rises to $749 from $729, and self-employed people need at least $9,515 in earnings to qualify for special benefits.

Last updated: October 8, 2026

The EI premium rate 2027 has been confirmed, and most Canadian workers will see slightly more Employment Insurance (EI) taken off their pay next year. The change is small per paycheque, but the higher earnings ceiling means anyone earning above $68,900 will pay more over the full year. EI is a federal program, so the same rules apply in every province and territory, with one exception: Quebec.

Below, we break down the new rate, the maximums, what it means for your take-home pay, and why the rate went up at all.

EI premium rate 2027: what is the new rate?

For workers outside Quebec, the 2027 rate is $1.64 per $100 of insurable earnings (1.64%), compared with $1.63 in 2026. The Canada Employment Insurance Commission (the Commission) set the rate on September 14, according to Insurance Business Canada, and Employment and Social Development Canada (ESDC) published the official summary.

Here are the headline 2027 figures from the Commission's summary:

Worker rate (outside Quebec): $1.64 per $100 of insurable earnings
Employer rate (outside Quebec): $2.30 per $100
Worker rate (Quebec residents): $1.29 per $100
Employer rate (Quebec): $1.81 per $100
Maximum insurable earnings (MIE): $70,800, up from $68,900
Maximum weekly benefit: $749, up from $729
Minimum self-employed earnings for special benefits: $9,515

The Commission notes that yearly changes to the rate are capped by law at 5 cents, which keeps premiums predictable for households and businesses.

How much EI will I pay in 2027?

Under the EI premium rate 2027, you pay 1.64% of your insurable earnings until you reach $70,800, then deductions stop for the rest of the calendar year. That puts the maximum worker contribution at $1,161.12, which is $38.05 more than the 2026 maximum.

Some simple examples, calculated by Jobsiz from the official rate (outside Quebec):

Earning $40,000 a year: about $656 in EI premiums for 2027.
Earning $50,000 a year: about $820.
Earning $70,800 or more: the full $1,161.12, after which EI deductions stop.

If you earn more than the ceiling, you will notice EI deductions disappear from your pay stub later in the year. That is normal and not a payroll error. If you work for more than one employer, each one deducts separately, and any overpayment is generally sorted out when you file your income tax return.

What about Quebec?

Quebec residents pay a lower rate because the province runs the Quebec Parental Insurance Plan (QPIP), which replaces EI maternity and parental benefits there. For 2027 the QPIP reduction is 35 cents, giving Quebec workers a rate of $1.29 per $100. Their maximum annual contribution is $913.32, up $17.62. Quebec workers still pay separate QPIP premiums to the province.

What do employers pay in 2027?

Employers pay 1.4 times the worker rate, which works out to $2.30 per $100 of insurable earnings outside Quebec and $1.81 in Quebec. The maximum employer cost is $1,625.57 per employee outside Quebec (up $53.27) and $1,278.65 in Quebec (up $24.67).

Employers can lower that bill through the Premium Reduction Program, which rewards firms that offer a qualifying short-term disability or wage-loss plan. About 23,800 employers are registered, and the Commission estimates the program will save employers and their staff about $1.687 billion in 2027. Reductions range from $0.22 to $0.46 per $100 depending on the plan category. Part of those savings must be passed on to employees.

For small businesses planning 2027 budgets, the takeaway is simple: update payroll software for the new rate and ceiling, and check whether a registered wage-loss plan could cut costs.

Why did the EI premium rate go up?

The rate rose mainly because new EI support measures for workers hit by tariffs added cost to the program, along with other program changes and an updated method for estimating administration costs. By law, the rate is set at a "break-even" level that would bring the EI Operating Account to a zero balance over seven years.

The senior actuary at the Office of the Superintendent of Financial Institutions (OSFI) first forecast a break-even rate of 1.62% in a report dated August 21, 2026. After the federal government announced more tariff-relief measures on August 25, an addendum added 2 cents, bringing the rate to 1.64%. Those measures include:

extending by one year the waiver of the one-week EI waiting period;
extending by one year the rule that lets laid-off workers collect EI without first using up severance or vacation pay;
extending by eight months the extra 20 weeks of regular benefits for long-tenured workers;
a new one-year measure so people who recently quit a job are not penalized if their latest job loss was through no fault of their own;
a new Workforce Retention and Retraining Program combining Work-Sharing and the Worker Retention Grant.

Some of that pressure was offset by a lower-than-anticipated deficit at the end of 2025 and a lower projected jobless rate. Even so, the EI Operating Account is projected to run a cumulative deficit of $16.726 billion by December 31, 2027, up from $15.623 billion a year earlier.

Will EI benefits go up too?

Yes. The maximum weekly benefit rises to $749 in 2027 from $729, because it is tied to the maximum insurable earnings. The MIE is indexed each year to growth in average weekly earnings reported by Statistics Canada (StatCan).

Other EI changes worth knowing about if you are between jobs or work seasonally:

Up to 5 extra weeks of regular benefits for eligible seasonal claimants in 13 targeted EI regions has been extended to October 2028.
The Spring Economic Update 2026 announced a proposed Apprenticeship Training Grant that would pay eligible apprentices $400 per week while attending mandatory in-class training, on top of EI regular benefits.
Ottawa announced $2 billion over five years, through agreements with the provinces and territories, to expand pre-apprenticeship and technical training, funded from the EI Operating Account.

What this means for you

For most workers, the EI premium rate 2027 change is modest: an extra cent per $100 and a higher ceiling. Here is a quick checklist:

Employees: expect slightly larger deductions that last a little longer into the year if you earn above $68,900.
Job seekers and laid-off workers: a higher $749 weekly maximum and extended tariff-relief rules may help if you claim EI.
Self-employed: if you opted into EI special benefits, you pay only the worker rate, and you need at least $9,515 in self-employed earnings.
Employers: update payroll for $2.30 per $100 (or $1.81 in Quebec) and the $70,800 ceiling.

Common mistakes to avoid: confusing EI with Canada Pension Plan (CPP) contributions, which have their own separate rates and ceilings; assuming Quebec uses the national rate; and treating the stop in EI deductions late in the year as an error.

Related reading on Jobsiz: "Minimum Wage Canada by Province 2026", "Work Permit Extension Processing Time" and "OINP Points 2026".

Frequently asked questions

What is the EI premium rate for 2027?

The 2027 EI premium rate is $1.64 per $100 of insurable earnings for workers outside Quebec, up from $1.63 in 2026. Employers pay $2.30 per $100. Quebec residents pay $1.29 and their employers pay $1.81.

What are the EI maximum insurable earnings for 2027?

Maximum insurable earnings for 2027 are $70,800, up from $68,900 in 2026. You stop paying EI premiums for the year once your insurable earnings pass that amount.

What is the maximum EI contribution in 2027?

The maximum worker contribution is $1,161.12 outside Quebec, $38.05 more than in 2026. In Quebec, the worker maximum is $913.32. The maximum employer contribution is $1,625.57 per employee outside Quebec.

What is the maximum EI weekly benefit in 2027?

The maximum weekly EI benefit is $749 in 2027, up from $729 in 2026. Your actual benefit depends on your insurable earnings and claim type.

Why is the EI rate higher in 2027?

The rate rose by one cent mainly because of new EI measures for workers affected by tariffs, such as extending the waiver of the one-week waiting period. A lower-than-expected 2025 deficit and lower forecast unemployment partly offset the increase.

Do self-employed people pay EI in 2027?

Only if they opt into EI special benefits. Self-employed participants pay the worker rate of $1.64 per $100 but not the employer share, and need at least $9,515 in self-employed earnings in 2027 to qualify.

Sources

This article was compiled by Jobsiz from the sources listed above, with AI-assisted writing and automated fact-checking. Published October 8, 2026. We update stories when new verified information becomes available.

EI Premium Rate 2027: New Rate, Maximums and What You'll Pay