EI Premium Rates 2026 Canada: Employee & Employer Contributions

EI premiums are another mandatory deduction that comes off every paycheque. The good news? EI rates are lower than CPP. The bad news? You still have to pay them. Here's exactly what you'll contribute in 2026.

Quick Answer

In 2026, Canadian employees pay 1.63% of insurable earnings toward Employment Insurance (EI), capped at $1,123.07 a year once you hit the $68,900 maximum insurable earnings (MIE). Employers pay a higher rate, 2.28%, up to $1,572.30. Quebec residents pay less, 1.30% (max $895.70), because the province runs its own parental insurance plan (QPIP) instead of the federal one.

2026 EI Premium Rates

Component	Employee	Employer
Premium rate	1.63%	2.28%
Maximum insurable earnings (MIE)	$68,900
Maximum annual premium	$1,123.07	$1,572.30

Source: Canada Revenue Agency: EI premium rates

Once you earn $68,900 in the year, your EI deductions stop. Below that, you'll pay right through December.

Quebec Has Different Rates

If you work in Quebec, your EI rate is lower because the province runs its own parental insurance program (QPIP).

Quebec 2026 EI Rates

Employee rate (vs. 1.63% elsewhere)1.30%

Maximum premium$895.70

QPIP premium (employee, additional)0.494%

Quebec residents pay QPIP instead of the federal parental-benefits portion of EI.

How to Calculate Your EI Premium

EI is simpler than CPP: there's no basic exemption to subtract first.

EI premium = income × 1.63%, capped at $1,123.07 once you earn $68,900 in the year.

Example Calculations

Earning $50,000 a Year

EI premium (income × 1.63%)$815.00

Monthly deduction~$68

Earning $80,000 a Year

EI premium (the maximum)$1,123.07

Cap reached at$68,900 in earnings, around October

EI Rates Over Time

Year	Rate	MIE	Max Premium
2026	1.63%	$68,900	$1,123.07
2025	1.64%	$65,700	$1,077.48
2024	1.66%	$63,200	$1,049.12
2023	1.63%	$61,500	$1,002.45
2022	1.58%	$60,300	$952.74

Self-Employed and EI

Unlike CPP, self-employed individuals are NOT required to pay EI premiums. However, you can opt in to get access to EI special benefits (maternity, parental, sickness, compassionate care).

Should you opt in?

Consider it if you're planning to have children or might need sickness benefits. You have to register at least 12 months before making a claim, and once you opt in, you can't opt out.

Combined Payroll Deductions 2026

Here's what total mandatory deductions look like for different income levels:

Annual Income	CPP	EI	Total
$40,000	$2,172	$652	$2,824
$60,000	$3,362	$978	$4,340
$80,000	$4,446	$1,123	$5,569
$100,000	$4,646	$1,123	$5,769

Note: CPP includes CPP2 for incomes above the YMPE ($74,600). Doesn't include income tax.

The Bottom Line

EI premiums for 2026 are 1.63% of your income up to $68,900, with a maximum contribution of $1,123.07. Combined with CPP and CPP2, that's over $5,500 in mandatory deductions before you even get to income tax.

Understanding these deductions helps you budget accurately. Your gross salary and your net pay are two very different numbers.

Frequently Asked Questions

The EI employee premium rate for 2026 is 1.63% of insurable earnings, up to the maximum insurable earnings (MIE) of $68,900. Employers pay a higher rate of 2.28%.

The maximum annual EI premium for employees in 2026 is $1,123.07. Once you've earned $68,900 for the year, you stop paying EI premiums. Employers pay a maximum of $1,572.30.

Yes. Quebec residents pay a lower EI rate of 1.30% (versus 1.63% elsewhere), with a maximum premium of $895.70, because Quebec runs its own parental insurance program (QPIP). Quebec employees also pay a separate QPIP premium of 0.494%.

Your EI premium is your income multiplied by 1.63%, capped at $1,123.07. Earning $50,000 means you pay $815 a year, about $68 a month. Earning $80,000 or more means you pay the maximum of $1,123.07.

Know your actual take-home pay

Waypoint Budget helps you budget from what actually lands in your account, not your gross salary.

Start Budgeting Free

No credit card required. The free plan never expires.