2025 Employment Insurance Premium Rate Announced
The Canada Employment Insurance Commission has announced the Employment Insurance (EI) premium rate for 2025. The new rate is set at $1.64 per $100 of insurable earnings for employees and $2.30 for employers, who pay 1.4 times the employee rate. This marks a decrease of two cents from the 2024 EI premium rate of $1.66 for employees and $2.32 for employers.
The Commission is responsible for determining the annual premium rate based on a seven-year break-even forecast provided by the EI Senior Actuary. This rate is designed to generate sufficient revenue to cover EI expenses over the next seven years and to eliminate any surplus or deficit in the EI Operating Account. Changes to the premium rate are limited by legislation to a maximum of five cents per year.
As of December 31, 2025, the cumulative deficit in the EI Operating Account is projected to reach $15.8 billion. The 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, the premium rate will be $1.31 per $100 of insurable earnings, with employers paying $1.83 per $100. The maximum annual contribution for a worker in Quebec will rise by $26.43 to $860.67, while employers will see an increase of $37.00 to $1,204.94 per employee.
Additionally, the maximum insurable earnings for 2025 will increase 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, while employers will contribute $1,508.47 per employee, an increase of $39.70.
The Premium Reduction Program, which allows employers to reduce EI premiums if they provide qualified wage-loss plans, is projected to offer 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.