2025 Employment Insurance Premium Rates Announced
The Canada Employment Insurance Commission has announced the Employment Insurance (EI) premium rates for 2025. The rate for employees will be set at $1.64 per $100 of insurable earnings, while employers will pay $2.30 per $100 of insurable earnings, which is 1.4 times the employee rate. This marks a decrease of two cents from the 2024 rates, which were $1.66 for employees and $2.32 for employers.
The Commission is responsible for setting the annual premium rate based on a seven-year break-even rate forecast provided by the EI Senior Actuary. This rate aims to generate sufficient revenue to cover EI expenses over the next seven years and to eliminate any cumulative surplus or deficit in the EI Operating Account. The annual changes to the premium rate are limited by legislation to a maximum of five cents.
As of December 31, 2025, the cumulative deficit in the EI Operating Account is projected to be $15.8 billion, largely due to increased unemployment and temporary measures during the COVID-19 pandemic. The forecasted break-even premium rate of $1.64 for 2025 is expected to balance the EI Operating Account by the end of 2031.
For residents of Quebec who are covered under the Quebec Parental Insurance Plan, the premium rate will be $1.31 per $100 of insurable earnings, with employers paying $1.83. The maximum annual contribution for a worker in Quebec will increase by $26.43 to $860.67, while the employer's contribution will rise by $37.00 to $1,204.94.
Additionally, the maximum insurable earnings for 2025 will rise to $65,700 from $63,200 in 2024. This figure is indexed annually and represents the maximum income on which EI premiums are calculated. Consequently, the maximum annual EI contribution for a worker will increase by $28.36 to $1,077.48, and for employers, it will rise by $39.70 to $1,508.47.
The Premium Reduction Program, which allows employers to apply for a reduction in EI premiums if they offer qualified wage-loss plans, is expected to provide approximately $1.37 billion in premium reductions in 2025. This amount will be shared between registered employers and their employees.
The Senior Actuary’s report and the Commission’s summary regarding the 2025 EI premium rate are available online for public access.
