EI – Information for employers

Budget 2017

Important changes to Employment Insurance (EI) benefits and corresponding leave provisions under Part III (Labour Standards) of the Canada Labour Code were proposed in Budget 2017. You should be aware of these changes, as they may have an impact on you as an employer or worker. They may also have an impact on employers’ supplementary benefits (“top-ups”) to EI maternity, parental, and caregiving benefits. The changes are part of the 2017 Budget Implementation Act, which received Royal Assent on June 22, 2017. These changes will come into effect on December 3, 2017.

We strongly encourage you to review the terms of any collective bargaining agreements, employment contracts and benefit plans you hold or administer, to assess any implications the changes may have for your organization and members.

For more information, please visit Expanding Employment Insurance Benefits to Offer More Flexibility for Families.

Budget 2016

Effective January 1, 2017, the EI waiting period has been reduced from two weeks to one week. As a result of this change, consequential amendments to the EI Regulations as they relate to employer supplementary benefit plans and the Premium Reduction Program (PRP) were made.

If you are an employer participating in the EI Premium Reduction Program and/or providing supplemental payments to your employees, the changes may have an impact on you. To find out if you may be impacted, please visit:

On this page

This page includes information for employers about:

  • preparing records of employment,
  • deducting and remitting employment insurance (EI) premiums,
  • obtaining an EI premium reduction,
  • supplementing EI benefits and
  • participating in voluntary verification programs.

It also provides external resources.

Responsibilities

Service Canada works closely with employers to ensure that the EI program is administered fairly and efficiently.

Preparing Records of Employment

The Record of Employment (ROE) is the electronic/paper form completed by employers for their employees who receive insurable earnings and who experience an interruption of earnings when they stop working. The ROE is the single most important document in the Employment Insurance (EI) program. Each year, more than 1 million Canadian employers fill out more than 9 million ROE forms for their employees.

Deducting and remitting EI Premiums

Employers have to deduct EI premiums from each dollar of insurable earnings of their employees up to a yearly maximum. They must also contribute 1.4 times the amount of EI premiums that they deduct from their employee’s remuneration.

Obtaining an EI Premium Reduction

EI premium reductions are granted through the EI Premium Reduction Program. Employers who provide their employees with a short-term disability plan that meets certain requirement may be entitled to pay their EI premiums at a rate that is lower than the standard employer rate (which is 1.4 times the employees’ EI premiums).

Supplementing EI Benefits

Employers can provide supplemental payments to increase their employees’ revenue while they are receiving EI benefits. Supplemental payments are not deducted from the employee’s EI benefits when certain requirements are met.

Managing your workforce

There are times when, as an employer, you may face challenges related to managing your work force, including restructuring your business to remain competitive. We can help you navigate these challenges through the following programs and services.

Useful links

A collection of useful information for employers.

External resources

Guides and help

Related services and info

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