EI premium rate 2027 — $1.64 per $100, insurable earnings ceiling $70,800
Quick answer: The Employment Insurance premium rate for 2027 is $1.64 per $100 of insurable earnings for employees, one cent above 2026, and employers pay 1.4 times that, $2.30. The ceiling on insurable earnings rises from $68,900 to $70,800, so the maximum annual premium becomes $1,161.12 for an employee and $1,625.57 for the employer, per employee. Quebec residents pay $1.29 and $1.81 because the province runs its own parental insurance plan.
The 2027 EI figures, with 2026 beside them
| Figure | 2026 |
|---|---|
| EI premium rate, employee | $1.64 per $100 of insurable earnings (2026: $1.63) |
| EI premium rate, employer | $2.30 per $100 — 1.4 times the employee rate (2026: $2.28) |
| Maximum insurable earnings | $70,800 (2026: $68,900) |
| Maximum annual premium, employee | $1,161.12 (2026: $1,123.07) |
| Maximum annual premium, employer, per employee | $1,625.57 (2026: $1,572.30) |
| Quebec rate, employee / employer | $1.29 / $1.81 per $100 |
| Maximum weekly EI benefit | $749 (2026: $729) |
The rate moved one cent. The ceiling moved $1,900. Almost all of the $38.05 increase in an employee’s maximum premium, and the $53.27 increase in the employer’s, comes from the ceiling.
How it works
Employment Insurance premiums are a percentage of each employee’s insurable earnings, withheld from pay and matched by the employer at 1.4 times the employee amount. For 2027 the employee rate is $1.64 for every $100 earned, so an employee paid $1,000 in a period has $16.40 withheld and the employer remits $22.96 on top.
Premiums stop once the employee’s earnings for the year reach the maximum insurable earnings, $70,800 for 2027. From that point the employee pays nothing more until January, and neither does the employer for that employee. That is why the maximum annual premium is a fixed dollar figure: $70,800 × 1.64% = $1,161.12.
The rate is set each September by the Canada Employment Insurance Commission, not by the CRA, on a seven-year forecast break-even basis: the rate at which the EI Operating Account is projected to balance by the end of the forecast period. For 2027 that rate is $1.64.
Quebec residents pay a lower federal EI rate, $1.29, because the Quebec Parental Insurance Plan replaces the maternity and parental side of EI and is funded by a separate provincial premium.
How it applies to you
Every employer, from the first pay dated in January 2027, and every employee with insurable earnings.
For a small employer the practical change is the ceiling. An employee earning $75,000 reaches the maximum in 2027 at $70,800 rather than $68,900, so the employer’s share for that person is $1,625.57 rather than $1,572.30 — $53.27 more per employee at or above the ceiling.
Most owner-managers do not pay EI on their own salary. An owner who controls more than 40% of the corporation’s voting shares is generally not in insurable employment, which is why the owner’s own pay usually carries CPP but not EI. That is a classification question worth confirming rather than assuming.
How to calculate it
Two employees, worked through on the 2027 figures:
| Step | Detail |
|---|---|
| Employee A, insurable earnings $60,000 | $60,000 × 1.64% = $984.00 employee premium |
| Employer share for A | $984.00 × 1.4 = $1,377.60 |
| Employee B, insurable earnings $80,000 | capped at $70,800 × 1.64% = $1,161.12 |
| Employer share for B | $1,161.12 × 1.4 = $1,625.57 |
| Same two employees in 2026 | A: $978.00 / $1,369.20 · B: $1,123.07 / $1,572.30 |
Employee B reaches the ceiling during the year, after which nothing further is withheld. If B changes employers mid-year the new employer starts again from zero; the employee recovers any overpayment on the T1, the employers do not.
What changed
Two things moved and one did not much. The ceiling rose by $1,900, which is where most of the increase in maximum premiums comes from; the rate rose by one cent; and the maximum weekly EI benefit rose from $729 to $749. The Commission set the rate at the seven-year forecast break-even level, which is the figure that balances the EI Operating Account by the end of 2033.
What to do
Load the 2027 tables before the first January pay run. The ceiling change is the one that catches manual payroll, because the point at which withholding stops has moved.
If you are budgeting payroll cost for 2027, the employer’s EI line rises by up to $53.27 per employee at or above the ceiling, and by 1.4 × one cent per $100 for everyone below it.
The CPP figures for 2027 — the pensionable earnings ceilings and the CPP2 band — are published separately, usually on 1 November. Until then, do not combine this page’s EI figures with an assumed CPP figure.
The practical point. Confirm the payroll software has the 2027 tables loaded before the first January pay run, and check the first PD7A remittance of 2027 against the new maximums. An employee who reached the 2026 maximum in November will start contributing again on 1 January at the new rate.
The terms used on this page
- Insurable earnings
- The pay on which EI premiums are charged: salary, wages and most taxable benefits, up to the annual maximum.
- Maximum insurable earnings (MIE)
- The annual ceiling on insurable earnings; premiums stop once it is reached. $70,800 for 2027.
- Employer multiple
- The employer pays 1.4 times the employee premium, unless it qualifies for a reduced rate under the Premium Reduction Program.
- Break-even rate
- The premium rate at which the EI Operating Account is forecast to balance over seven years; the Commission sets the rate at this level each September.
- Insurable employment
- Employment that carries EI coverage and premiums. An owner controlling more than 40% of voting shares is generally excluded on their own employment.
Common questions
What is the EI rate for 2027?+
What is the maximum insurable earnings for 2027?+
What is the maximum EI premium for 2027?+
Why is the Quebec EI rate lower?+
Do I pay EI on my own salary as an owner?+
Where this comes from
Every figure on this page is taken from the source below, not from interpretation:
- Canada Employment Insurance Commission — 2027 EI premium rate confirmed, 14 September 2026
- ESDC — Summary of the 2027 Actuarial Report on the EI Premium Rate
General information, not tax advice. This page explains a change in general terms. It cannot account for your circumstances and does not create a professional relationship. Confirm anything that affects a decision — book a free consult.
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