What employees and payroll administrators should prepare for on January 1
Employment Insurance premium figures for 2027 will take effect on January 1, 2027. The maximum insurable earnings threshold will rise, while employee premium rates will differ depending on whether a worker is in Quebec or elsewhere in Canada.
The figures are not yet in effect as of October 28, 2026. Employees can use them to understand possible 2027 deductions, while employers can prepare to apply the appropriate regional rate and annual maximum.
2027 EI rates and maximum premiums
Maximum insurable earnings are the income level up to which EI premiums are paid. For 2027, that ceiling will be $70,800 for workers covered by the notice. This is $1,900 higher than the 2026 ceiling of $68,900.
An employee earning more than $70,800 in 2027 will pay EI premiums only on the first $70,800 of earnings. An employee does not automatically pay the maximum premium: insurable earnings must be sufficient to reach the applicable annual maximum.
| Location and measure | 2026 | 2027 |
|---|---|---|
| Maximum insurable earnings | $68,900 | $70,800 |
| Employee rate outside Quebec | $1.63 per $100 | $1.64 per $100 |
| Maximum employee premium outside Quebec | $1,123.07 | $1,161.12 |
| Employee rate in Quebec | $1.30 per $100 | $1.29 per $100 |
| Maximum employee premium in Quebec | $895.70 | $913.32 |
What the figures mean outside Quebec
For employees outside Quebec, the EI premium rate will increase from $1.63 to $1.64 for every $100 of insurable earnings.
The maximum annual employee premium will rise from $1,123.07 in 2026 to $1,161.12 in 2027. That is an increase of $38.05 for an employee whose insurable earnings are high enough to reach the annual maximum.
Employees with lower insurable earnings should not assume that they will pay $1,161.12. That figure is the maximum, not a flat annual charge for every worker.
Why Quebec’s rate falls while its maximum rises
In Quebec, the employee EI rate will decrease from $1.30 per $100 in 2026 to $1.29 per $100 in 2027.
Despite that lower rate, the maximum annual employee premium will rise from $895.70 to $913.32, an increase of $17.62. This happens because the maximum insurable earnings ceiling will be higher in 2027.
Quebec has a lower EI premium rate because it operates its own maternity, parental and adoption benefits through the Quebec Parental Insurance Plan.
How employers are affected
Beginning January 1, 2027, employers must use the applicable 2027 regional employee rate when deducting EI premiums from insurable earnings. They deduct premiums only up to the applicable maximum annual employee premium.
Under the standard rule, an employer generally contributes 1.4 times the EI premiums deducted from an employee’s pay. This means the employer obligation is tied to the amount actually deducted from that employee, rather than automatically being based on the maximum in every case.
A possible exception applies to employers with qualifying short-term disability plans. Such employers may be entitled to an EI premium rate below the standard rate through the EI Premium Reduction Program. The supplied official material does not specify the reduced rates, so an eligible employer should not assume that the standard 1.4 multiplier represents its final rate.
Practical payroll points for 2027
- Use the $70,800 maximum insurable earnings threshold beginning January 1, 2027.
- Apply the $1.64-per-$100 employee rate outside Quebec.
- Apply the $1.29-per-$100 employee rate in Quebec.
- Do not deduct more than the applicable annual employee maximum of $1,161.12 outside Quebec or $913.32 in Quebec.
- For a standard-rate employer, contribute 1.4 times the employee premiums deducted.
- If the employer may qualify for the EI Premium Reduction Program, verify the applicable reduced rate rather than relying on the standard multiplier.
The official material supplied for these figures does not provide detailed payroll-period calculations or remittance procedures.
Do You Need to Do Anything?
Employees generally do not need to calculate or remit EI premiums themselves based on this notice. However, they can review their 2027 pay information with the applicable regional rate and annual maximum in mind.
Employers and payroll administrators should prepare to use the 2027 figures for deductions from January 1, 2027. Employers with a potentially qualifying short-term disability plan should confirm whether a reduced employer premium rate applies to them.
Bottom Line
The 2027 EI earnings ceiling will be $70,800. Outside Quebec, both the employee rate and maximum annual employee premium will increase. In Quebec, the employee rate will decrease, but the annual maximum will still increase because premiums can apply to a higher level of insurable earnings.
Employees pay only according to their insurable earnings, up to the applicable annual maximum. Standard-rate employers generally contribute 1.4 times the premiums deducted, while qualifying employers may be eligible for a lower rate.
Official Government Sources
This article provides general information based on official Canadian government sources. Government programs, amounts, eligibility rules and deadlines can change. Check the official sources linked above for information specific to your situation.