Lower EI Deductions Will Leave a Little More Money in Canadian Paycheques
Canadian workers will pay a lower Employment Insurance premium rate in 2027. The change means slightly smaller EI deductions from eligible earnings, while employers will also see their EI payroll costs decrease.
The 2027 EI premium rate for employees outside Quebec will be $1.61 for every $100 of insurable earnings, down from $1.63 in 2026. Quebec employees will pay $1.26 per $100, down from $1.30. The lower rate takes effect January 1, 2027.
What Is Changing With EI?
Most Canadian employees have Employment Insurance premiums deducted directly from their pay.
The Canada Employment Insurance Commission sets the EI premium rate each year.
For 2027, the employee rate outside Quebec will fall from $1.63 to $1.61 per $100 of insurable earnings.
| Employee EI Rate | 2026 | 2027 |
|---|---|---|
| Outside Quebec | $1.63 per $100 | $1.61 per $100 |
| Quebec | $1.30 per $100 | $1.26 per $100 |
How Much Will You Save?
The difference is modest, but workers paying EI premiums will keep slightly more of their earnings.
For example, an employee outside Quebec with $50,000 of insurable earnings would pay approximately $815 in EI premiums at the 2026 rate.
At the 2027 rate of $1.61 per $100, the same $50,000 of insurable earnings would produce approximately $805 in premiums.
2026 EI premium: approximately $815
2027 EI premium: approximately $805
Difference: approximately $10 per year
This is a simplified example using the annual premium rates. Your actual deductions depend on your insurable earnings and payroll circumstances.
Higher Earners Will See a Different Maximum
EI premiums are only charged up to the annual maximum insurable earnings amount.
For 2027, maximum insurable earnings will rise to $71,500, up from $68,900 in 2026.
That increase matters because even though the EI premium rate is falling, a worker earning above the annual maximum may have a larger amount of earnings subject to EI premiums.
A lower EI premium rate does not necessarily mean every employee’s total annual EI contribution will be lower. The maximum amount of earnings subject to EI is increasing in 2027.
What Is the Maximum Employee EI Premium?
For employees outside Quebec, the maximum annual employee EI premium for 2027 will be $1,151.15.
The maximum is reached once an employee has paid EI premiums on the year’s maximum insurable earnings.
After an employee reaches the annual maximum through one employer, regular EI deductions from that employment generally stop for the remainder of the year.
Why Is Quebec Different?
Quebec employees pay a lower federal EI premium because Quebec provides its own parental insurance program.
For 2027, the Quebec employee EI rate will be $1.26 per $100 of insurable earnings.
Quebec workers may also make separate contributions to the Quebec Parental Insurance Plan.
Employers Pay EI Premiums Too
Employers generally pay EI premiums equal to 1.4 times the employee premium.
That means changes in EI rates and maximum insurable earnings affect business payroll costs as well as employee paycheques.
Some employers with an approved wage-loss replacement plan may qualify for a reduced employer premium rate.
Do Employees Need to Do Anything?
No.
EI premiums are normally deducted automatically through payroll. Employees do not need to apply for the lower 2027 rate.
Employers and payroll providers should use the new rates and annual maximums when calculating payroll beginning in January 2027.
When Does the New Rate Start?
Until then, the 2026 EI premium rates continue to apply.
The Bottom Line
The EI premium rate is going down in 2027, but the impact on individual workers will depend on their earnings.
Employees outside Quebec will pay $1.61 for every $100 of insurable earnings, compared with $1.63 in 2026.
At the same time, maximum insurable earnings increase to $71,500.
For workers, the change will happen automatically through payroll. There is nothing to apply for and no form required simply to receive the new EI rate.
Government of Canada — 2027 Employment Insurance Premium Rate
Government of Canada — Employment Insurance Premium Rates and Maximums
VIPNews explains Canadian government changes in plain English. This article provides general information and is not personal tax, payroll or financial advice.