EI Premiums 2026 — How Much You Pay and What You Get Back

Bottom line: In 2026, employees pay 1.63% of insurable earnings up to $68,900 — a maximum of $1,123.07/year. Employers pay 1.4x that amount. Self-employed Canadians don't pay EI unless they opt in for special benefits. EI replaces 55% of your earnings up to $729/week if you lose your job.

12026 EI Numbers

If you earn $68,900 or more, your EI premiums are capped at $1,123.07 for the year. Your employer pays an additional $1,572.30 on your behalf, for a total of $2,695.37 contributed to the EI system.

2EI Premium History

EI rates have fluctuated over the past decade:

The rate and maximum have gradually increased over the years, though the rate has stabilized in the 1.58-1.66% range.

3How EI Is Deducted from Your Pay

EI is deducted from every paycheque until you hit the annual maximum. Unlike CPP, there is no basic exemption — EI applies from dollar one of insurable earnings.

Biweekly Paycheque Examples

For high earners, EI is a relatively small deduction. The maximum of $1,123.07/year works out to about $94/month or $43/pay period (biweekly).

When EI Maxes Out

Since EI applies to maximum insurable earnings of $68,900, workers earning above this amount will max out their EI at different points in the year:

After maxing out, your paycheque increases by approximately $43 per period. Combined with CPP maxing out (often around the same time for high earners), your year-end paycheques can be noticeably larger.

4Quebec Is Different: EI and QPIP

Quebec operates its own parental insurance plan — the Quebec Parental Insurance Plan (QPIP or RQAP in French). Because of this, Quebec workers pay lower EI premiums but also pay QPIP separately.

Total Payroll Comparison

For an employee earning $80,000:

Quebec workers pay slightly more in total, but QPIP is a separate plan with its own parental benefit rules. See the RQAP site in the sources for the current benefit rates.

5What EI Benefits You Can Receive

Regular Benefits (Job Loss)

Regular EI benefits are available when you lose your job through no fault of your own (layoff, company closure, shortage of work).

The number of hours required and weeks of benefits available depend on the unemployment rate in your Economic Region. In areas with high unemployment, fewer hours are needed and more weeks are available.

Rates between 6% and 13% fall in steps between these two figures. The weeks of benefits depend on both your insurable hours and your regional rate.

Maternity Benefits

Parental Benefits (Two Options)

You must choose between standard and extended parental benefits. This choice cannot be changed once benefits begin.

Combined maternity + parental (one parent):

• Standard: 15 + 35 = 50 weeks at 55%
• Extended: 15 + 61 = 76 weeks at 33% (maternity at 55%)

Financial comparison for someone at maximum insurable earnings:

• Standard (50 weeks): 15 weeks x $729 + 35 weeks x $729 = $36,450
• Extended (76 weeks): 15 weeks x $729 + 61 weeks x $437 = $10,935 + $26,657 = $37,592

Extended parental provides slightly more total money ($1,142 more) but spread over 26 additional weeks, meaning significantly less per week.

Sickness Benefits

The extension from 15 to 26 weeks was a significant improvement, particularly for workers undergoing cancer treatment or recovering from major surgeries.

Compassionate Care and Family Caregiver

These benefits can be shared among family members caring for the same individual.

6Self-Employed and EI

Self-employed Canadians are not required to pay EI premiums and cannot receive regular (job loss) benefits — since you cannot lay yourself off.

However, you can opt in to EI special benefits by registering with the Canada Employment Insurance Commission.

What You Get When You Opt In

• Maternity benefits (15 weeks at 55%)
• Parental benefits (35 or 61 weeks)
• Sickness benefits (26 weeks)
• Compassionate care benefits (26 weeks)
• Family caregiver benefits (15 or 35 weeks)

What you do NOT get: Regular benefits (job loss). Even after opting in, self-employed individuals cannot claim regular EI.

Cost to Opt In (2026)

You pay the employee rate only — maximum $1,123.07/year. You do NOT pay the employer portion (unlike CPP, where self-employed pay both).

Your premiums are based on your self-employment income, calculated when you file your tax return:

• Self-employment income x 1.63% = EI premium
• Capped at $1,123.07

Is Opting In Worth It?

For planned parenthood:

• Cost: ~$1,123/year (you must register and pay premiums for at least one year before claiming)
• Potential maternity benefit: 15 weeks x $729 = $10,935
• Potential parental benefit: 35 weeks x $729 = $25,515
• Total possible benefit: $36,450 for a cost of $1,123
• Return: about 32x your premiums

This is one of the best deals in Canada if you plan to have a child within the next 1-2 years.

For sickness coverage:

• Cost: ~$1,123/year
• Potential benefit: 26 weeks x $729 = $18,954
• Whether this is worth it depends on:
• Do you have private disability insurance?
• Do you have an emergency fund that could cover 6 months?
• What is your risk tolerance?

Important Opt-In Rules

1. You must register before you can claim. There is a waiting period of approximately 12 months from the date you register before you can receive benefits.
2. Once you opt in and receive benefits, you cannot opt out. You must continue paying EI premiums for as long as you remain self-employed. You can only opt out if you have NOT received benefits.
3. Premiums are calculated on your tax return. You pay them when you file, not throughout the year.

7EI and Your Tax Return

EI Premium Tax Credit

EI premiums generate a non-refundable tax credit at the lowest federal rate (14% in 2026):

• Maximum EI premium: $1,123.07
• Federal tax credit: $1,123.07 x 14% = $157
• Most provinces also provide a provincial credit on EI premiums

EI Benefits Are Taxable

EI benefits received are fully taxable as regular income. Tax is withheld at source when benefits are paid, but the withholding rate is often lower than your actual marginal rate, which can lead to a balance owing at tax time.

Example:

• You receive $729/week in EI for 20 weeks = $14,580
• Tax withheld at source (approximately 10-15%): ~$1,458-$2,187
• If your other income puts you at a 30% marginal rate, actual tax on $14,580 = $4,374
• Balance owing at tax time: $2,187-$2,916

Plan ahead by setting aside approximately 15-20% of your EI benefits for the potential tax bill.

8EI Clawback for High Earners

If your net income exceeds $86,125 (2026, which is 1.25 times the $68,900 maximum insurable earnings) and you received regular EI benefits, you must repay 30% of the lesser of your benefits or the amount over the threshold. This is called the EI clawback or repayment provision.

How the Clawback Works

Example:

• You received $10,000 in regular EI benefits
• Your net income for the year (including EI) is $100,000
• Excess over $86,125: $13,875
• Lesser of benefits ($10,000) and excess ($13,875): $10,000
• Clawback: 30% x $10,000 = $3,000
• You must repay: $3,000

Exemptions from Clawback

The clawback does NOT apply to:

• Maternity benefits
• Parental benefits
• Sickness benefits
• Compassionate care benefits
• Family caregiver benefits
• First-time claimants (people who received less than one week of regular benefits in the previous ten years)

The clawback primarily affects high earners who receive regular EI benefits in the same year they also have significant other income (e.g., laid off in January, found a high-paying job in March).

9EI for Multiple Job Holders

If you have more than one employer, each employer deducts EI premiums independently. You may end up paying more than the annual maximum ($1,123.07) across all employers.

What to do: When you file your tax return, any EI premium overpayment is automatically refunded. You do not need to file a special form — the overpayment is calculated and applied as a credit on your return.

Example:

• Job 1 deducts $800 in EI premiums
• Job 2 deducts $600 in EI premiums
• Total paid: $1,400
• Maximum: $1,123.07
• Refund: $276.93 (returned when you file your tax return)

10EI and Working While on Claim

If you work part-time while receiving EI, the Working While on Claim provision allows you to keep some of your EI benefits:

• You keep 50 cents of your EI benefit for every dollar you earn, up to 90% of the weekly insurable earnings used to calculate your benefit
• Earnings above that 90% are deducted from your benefit dollar-for-dollar

Example:

• Weekly EI benefit: $500
• You earn $300 in a week (well under 90% of your weekly insurable earnings)
• Deduction: $300 x 50% = $150
• EI payment for that week: $500 - $150 = $350
• Total income: $300 + $350 = $650 (more than EI alone)

Working part-time while on EI always puts more money in your pocket than not working.

11Frequently Asked Questions

Do I pay EI on investment income?

No. EI premiums are only charged on insurable earnings from employment (or self-employment if opted in). Investment income, rental income, pension income, and RRSP withdrawals are not subject to EI.

Can I collect EI if I quit my job?

Generally no. Quitting voluntarily disqualifies you from regular EI benefits. However, there are exceptions for "just cause" — if you quit due to harassment, unsafe working conditions, caring for a family member, following a spouse who must relocate, or significant changes to your work conditions.

How many hours do I need to qualify?

For regular benefits: 420-700 insurable hours in the past 52 weeks, depending on your regional unemployment rate. For special benefits (maternity, parental, sickness): 600 insurable hours.

Can I receive EI and CPP at the same time?

Yes. CPP retirement income does not affect EI benefits. However, CPP disability benefits cannot be received simultaneously with EI sickness benefits.

What happens if I am fired?

If you are fired for misconduct, you are not eligible for regular EI benefits. If you are fired for reasons other than misconduct (poor performance, company restructuring), you may be eligible.

Do seasonal workers qualify for EI?

Yes. Many industries (fishing, forestry, construction, tourism) have seasonal workers who regularly use EI between seasons. The qualifying hours and benefit duration depend on the regional unemployment rate.

How do I apply for EI?

Apply online at canada.ca/ei within 4 weeks of your last day of work. You will need your Record of Employment (ROE) from your employer, your SIN, and your banking information for direct deposit.

See your complete payroll deductions. Use the Canadian Income Tax Calculator to see exactly how much EI, CPP, and income tax will be deducted from your paycheque in 2026.

12Sources

• CRA EI Premium Rates and Maximums (opens in a new tab)
• Service Canada — Employment Insurance Benefits (opens in a new tab)
• Service Canada — EI Regular Benefits (opens in a new tab)
• CRA T4127 Payroll Deductions Formulas (opens in a new tab)
• RQAP — Quebec Parental Insurance Plan (opens in a new tab)

13Related Articles

• CPP Explained for 2026 -- CPP1, CPP2, Base vs Enhancement
• How Canadian Income Tax Works -- Progressive Brackets Explained Simply
• Self-Employed Taxes in Canada: Complete 2026 Guide