Employment Insurance - Important notice about maximum insurable earnings for 2020

The maximum insurable earnings (MIE) is the income level up to which Employment Insurance (EI) premiums are paid. It determines the maximum rate of weekly benefits paid for all types of benefits under the EI program.

Effective January 1, 2020, the maximum insurable earnings will increase from $53,100 to $54,200. This means that an insured worker will pay EI premiums in 2020 on insured earnings up to $54,200.

In 2020, the employee EI premium rate will be $1.58 per $100. This premium rate and the MIE increase means that insured workers will pay a maximum annual EI premium in 2020 of $856.36 compared with $860.22 in 2019.

As a result of the increased MIE, beginning in January 2020, the maximum weekly EI benefit rate will increase from $562 to $573 per week. Claims established before December 31, 2019 will not be affected by the 2020 MIE increase.

Insured workers will pay EI premiums on all earnings up to the annual maximum salary of $54,200. This means a deduction of $1.58 will be made for every $100 of salary until the $54,200 for the year has been reached. For example, if an individual earns $55,000 a year, premiums are payable on the first $54,200.

The premium rate for workers in Quebec will be $1.20. This rate is lower than in the rest of Canada, because the Province of Quebec has been collecting premiums from their workers since January 2006 to administer its own maternity, parental, and paternity benefits under the Quebec Parental Insurance Plan.