Employment Insurance premiums will be set at $1.64 per $100 of insurable earnings for most Canadian workers in 2027.
The rate takes effect on January 1, 2027, and will determine deductions from employee paycheques as well as the contributions employers make on their workers’ behalf.
The Canada Employment Insurance Commission confirmed the rate in a resolution published in the Canada Gazette on October 10, 2026.
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What the 2027 Employment Insurance rate means
The 2027 Employment Insurance rate is one cent higher than the $1.63 rate that applies in 2026.
Employees will pay $1.64 for every $100 of insurable earnings until they reach the annual maximum.
Employers generally contribute 1.4 times the employee rate, producing a 2027 employer rate of $2.30 per $100 of insurable earnings.
The rate is designed through a seven-year break-even mechanism intended to align premium revenue with projected Employment Insurance expenses and eliminate the operating account’s cumulative balance over the forecast period.
The federal government said the Employment Insurance Operating Account is forecast to have a cumulative deficit of $15.6 billion at the end of 2026.
Based on the actuarial forecast, the 2027 rate is expected to help balance the account by the end of 2033.
Maximum insurable earnings will also rise
The maximum annual insurable earnings threshold will increase to $70,800 in 2027 from $68,900 in 2026.
This is the maximum annual income on which Employment Insurance premiums are calculated for an employee with insurable employment.
| 2027 measure | Most of Canada | Quebec |
|---|---|---|
| Employee rate | $1.64 per $100 | $1.29 per $100 |
| Employer rate | $2.30 per $100 | $1.81 per $100 |
| Maximum insurable earnings | $70,800 | $70,800 |
| Maximum employee contribution | $1,161.12 | $913.32 |
| Maximum employer contribution | $1,625.57 | $1,278.65 |
For employees outside Quebec, the maximum annual Employment Insurance contribution will rise by $38.05 to $1,161.12.
The maximum employer contribution will increase by $53.27 to $1,625.57 per employee.
The higher maximum contributions result from both the new rate and the increase in the insurable earnings ceiling.
Quebec workers will pay a lower EI rate
Quebec workers covered by the Quebec Parental Insurance Plan will pay $1.29 per $100 of insurable earnings in 2027.
Employers in Quebec will pay $1.81 per $100 of insurable earnings.
The lower Quebec rate reflects the province’s separate parental insurance system, which finances maternity, parental, paternity and adoption benefits for Quebec residents.
The maximum employee contribution in Quebec will be $913.32 in 2027, an increase of $17.62 from 2026.
The maximum employer contribution in Quebec will be $1,278.65, up $24.67 from the previous year.
What employees and employers should check
Employees should expect their payroll deductions to reflect the 2027 rate beginning with pay periods that include January 1, 2027.
The exact amount deducted from each paycheque will depend on the employee’s insurable earnings, pay frequency and whether the annual maximum has already been reached.
Workers who earn less than the annual maximum will not pay the full maximum contribution.
Employers and payroll administrators will need to update payroll software, deduction tables and contribution calculations for the new year.
Employers that provide qualifying wage-loss replacement plans may be eligible for reduced Employment Insurance premiums through the Premium Reduction Program.
The federal government estimates that registered employers and their employees will receive roughly $1.7 billion in premium reductions through that program in 2027.
How the rate compares with recent years
The federal employee rate was $1.64 per $100 in 2025 before falling to $1.63 in 2026.
The 2027 rate returns to the 2025 level, although the maximum insurable earnings threshold is higher than it was two years earlier.
As a result, workers with earnings at or above the annual ceiling will face a higher maximum contribution in 2027 than in 2025.
The 2027 rate announcement applies to Employment Insurance premiums and does not change the eligibility rules or benefit amounts for people applying for Employment Insurance.
It also does not change Quebec’s separate parental insurance program.
Frequently Asked Questions
What is the 2027 Employment Insurance premium rate?
The rate is $1.64 per $100 of insurable earnings for employees outside Quebec.
When does the 2027 EI rate take effect?
The new rate takes effect on January 1, 2027.
What is the 2027 EI rate in Quebec?
Quebec workers covered by the Quebec Parental Insurance Plan will pay $1.29 per $100 of insurable earnings.
What is the maximum EI contribution in 2027?
The maximum employee contribution is $1,161.12 outside Quebec and $913.32 in Quebec.
How much will employers pay for EI in 2027?
Employers generally pay 1.4 times the employee rate, or $2.30 per $100 outside Quebec and $1.81 per $100 in Quebec.
Fact-Checked: Key rates, dates, maximums and Quebec adjustments were checked against the Canada Gazette, Employment and Social Development Canada and Canada Revenue Agency information.
Disclaimer: Payroll deductions can vary by pay period and employment circumstances, so employees and employers should use the official 2027 payroll tables when calculating exact amounts.