Summary of the 2026 Actuarial Report on the Employment Insurance Premium Rate
On this page
- List of abbreviations
- The Canadian Employment Insurance Commission
- Premium Rate Setting
- Employment Insurance program changes announced between July 22, 2024 and July 22, 2025
- Additional Employment Insurance-funded changes announced between July 22, 2025 and September 12, 2025
- 2026 premium rate
- Actuarial report: Main findings
List of abbreviations
- EI
- Employment Insurance
- ESD
- Employment and Social Development
- ESDC
- Employment and Social Development Canada
- MIE
- Maximum Insurable Earnings
- OSFI
- Office of the Superintendent of Financial Institutions
- PRP
- Premium Reduction Program
- QPIP
- Quebec Parental Insurance Plan
- SBPR
- Small Business Premium Rebate
- WLP
- Wage-loss Plans
The Canada Employment Insurance Commission
The Canada Employment Insurance Commission (the Commission) presents its summary of the 2026 Actuarial Report on the Employment Insurance Premium Rate. This is one of the Commission's responsibilities as defined per section 66.31 of the Employment Insurance Act (the Act).
The Commission is responsible for administering the Act. The objective of the Act is to provide eligible workers with Employment Insurance (EI) benefits. The Act also provides eligible workers with employment programs and services.
The Commission is a tripartite organization that consists of 4 members, 3 of whom are voting members. They represent the interests of workers, employers, and the Government. The Governor in Council appoints the Commissioner for Workers and the Commissioner for Employers. Each Commissioner represents and reflects the views of their constituencies. The Deputy Minister of the Department of Employment and Social Development Canada (ESDC) is the Chairperson of the Commission. The Senior Associate Deputy Minister of the Department of ESDC and Service Canada's Chief Operating Officer is the Vice-Chairperson of the Commission. The Vice-Chairperson only votes when acting for the Chairperson.
The Commission's responsibilities include the day-to-day administration of the EI Operating Account. It delegates this responsibility to the officers and employees of the Department of ESDC.
The EI program's financial transactions are reported through the EI Operating Account. The Act establishes the EI Operating Account in the public accounts of Canada. Amounts received under the Act are deposited in the Consolidated Revenue Fund. The EI Operating Account is credited for these amounts. The benefits and the costs of administration of the Act are paid out of the Consolidated Revenue Fund. The EI Operating Account is charged for these amounts.
Premium rate setting
Since April 1, 2016, the Commission sets the EI premium rate every year. The Commission engages the services of a Fellow of the Canadian Institute of Actuaries to perform actuarial forecasts and estimates. This person is also an employee of the Office of the Superintendent of Financial Institutions (OSFI). On October 8, 2024, OSFI appointed Laurence Frappier as the Commission's Senior Actuary, EI Premium Rate Setting (Senior Actuary).
In accordance with the Act, the premium rate is set according to a 7-year forecast break-even rate. The Senior Actuary forecasts this break-even rate in an actuarial report. The break-even rate is the premium rate that would result in an EI Operating Account balance of $0 in 7 years. This means that the break-even rate also eliminates any cumulative surplus or deficit after this period. Annual changes to the premium rate are subject to a legislated limit of 5 cents. Provided it is in the public interest, the Governor in Council may change this limit or substitute a premium rate for the following year that is different from the one set by the Commission. These measures ensure stable and predictable premium rates for employees and employers. It also ensures that EI contributions are only used for EI purposes.
The Commission publishes the Maximum Insurable Earnings (MIE) each year. Employees and employers pay EI premiums up to this threshold.
The Act includes regulations for providing premium reductions to provinces and employers that deliver plans that reduce or replace EI special benefits. The Commission determines premium reductions for employees and employers in Quebec. These premium reductions account for the Quebec Parental Insurance Plan (QPIP). The QPIP replaces EI maternity and parental benefits for Quebec residents. The Commission also determines premium reductions for employers who provide their employees with qualified wage-loss plans. This includes short-term disability plans that reduce the demand on the EI program (for example, for sickness benefits). Employers register these plans under the Premium Reduction Program (PRP).
The Commission prepares a summary of the actuarial report. It also makes available publicly the actuarial report and its summary on the day the premium rate is set each year. The Minister of Employment and Social Development (ESD) tables the actuarial report and summary in both Houses of Parliament. Tabling must occur within 10 sitting days of their publication. This ensures transparency and accountability in the annual EI premium rate setting process.
Employment Insurance program changes announced between July 22, 2024 and July 22, 2025
Temporary measures to facilitate access to EI
In March 2025, 3 temporary measures were introduced to improve access to EI benefits to support workers affected by tariffs:
- adjusting EI regional unemployment rates upward by 1 percentage point in all EI regions to a maximum of 13.1%, with no region below 7.1%
- waiving the 1-week EI waiting period
- suspending the treatment of monies paid on separation
These temporary measures are in place until October 11, 2025.
Additionally, in response to evacuations in the communities of Jasper, Alberta and Bunibonibee Cree Nation, Manitoba due to wildfires in 2024, an EI pilot project was introduced providing a one-time credit of 300 hours of insurable employment to eligible EI claimants in those communities for a period of 1 year (from July 21, 2024 to July 19, 2025).
Work-Sharing program
As part of the measures to support workers and employers affected by tariffs, temporary special measures for the Work-Sharing program are in place until March 6, 2026. The new measures were approved by the Commission to improve access to the program by expanding eligibility for employers and workers and increasing the duration of Work-Sharing agreements. Additionally, temporary Work-Sharing Special Measures were introduced to support businesses affected by the 2024 Jasper and Bunibonibee Cree Nation wildfires for 8 months (until August 3, 2025).
Labour Market Development Agreements
Supplementary EI Part II funding provided through the bilateral Labour Market Development Agreements (LMDAs) was announced on July 16, 2025, to provide increased training and employment supports for affected steel workers.
Training benefit
The EI Training Support Benefit and the EI Premium Rebate for Small Businesses which were announced in Budget 2019 but had not been implemented, have been removed from the calculation for the 7-year forecast break-even rate.
Additional Employment Insurance-funded changes announced between July 22, 2025 and September 12, 2025
Since July 22, 2025, the following additional EI-funded measures have been announced to support workers impacted by tariffs:
- new investments for upskilling, reskilling and income supports for softwood lumber workers through the LMDAs
- a new reskilling package to train workers, leveraging new methods such as employer-based training and worker outreach via the LMDAs
- modernizing Job Bank and launching a new Online Training Platform
- launching new Workforce Alliances, to bring together employers, unions and industry groups to work on ways to help businesses and workers succeed in the changing labour market
- temporarily providing 20 extra weeks of income support to long-tenured workers, up to a maximum of 65 weeks, starting October 12, 2025, and retrospectively to claims started as of June 15, 2025, to April 11, 2026
- 6-month extensions to 2 of the temporary EI measures already in place to support workers affected by tariffs to April 11, 2026: suspending the rules on separation payments and waiving the 1-week waiting period
2026 premium rate
Based on the information contained in the actuarial report and the addendum to this report, the Senior Actuary has forecasted the 7-year break-even rate for 2026 at $1.63 per $100 of insurable earnings. This is a 1-cent decrease from the 2025 7-year forecast break-even rate of $1.64 per $100 of insurable earnings.
A combination of several factors contributes to this 1-cent decrease when compared to the 2025 actuarial projections. A lower than anticipated deficit as of December 31, 2024, a lower than expected recipiency rate, the removal of the estimated costs for the EI Training Support Benefit and the EI Premium Rebate for Small Businesses from the premium rate calculations since they were not implemented, an increase in the projected wage growth, and the change in the 7-year period from 2025 to 2031 to 2026 to 2032. The decrease is partially offset by a higher than projected average unemployment rate, higher than projected administration costs, and the cost of new EI-funded measures, including those announced after July 22, 2025.
The annual EI actuarial forecast rests on multiple assumptions. Some assumptions affect the 7-year forecast break-even rate more than others do. For example, a ± 0.5% variation in the average unemployment rate over the 2026 to 2032 period would result in an increase or decrease of between 5 and 6 cents in the 2026 7-year forecast break-even rate.
In its addendum to the actuarial report, the Senior Actuary calculated the impact of the additional EI-funded changes announced after July 22, 2025, on the break-even rate. These measures represent an incremental impact of 2-cents on the break-even premium rate, bringing the 7-year break-even rate for 2026 to $1.63 per $100 of insurable earnings.
The 2026 EI premium rate is set at $1.63 per $100 of insurable earnings for workers. The 2026 premium rate for workers who reside in Quebec is $1.30 per $100 of insurable earnings. This reduction accounts for the province administering QPIP, its own parental insurance plan.
Employers pay 1.4 times the employee premium rate. For 2026, the premium rate for employers is $2.28 per $100 of insurable earnings. For employers in Quebec, the premium rate for 2026 is $1.82 per $100 of insurable earnings.
Variations in the premium rate affect the EI Operating Account's cumulative balance. A ± 1 cent variation over 2026 to 2032 would result in a $1.762 billion increase or decrease in the cumulative balance at the end of the 7-year forecast period.
Actuarial report: Main findings
This summary presents the results of the 2026 Actuarial Report on the EI premium rate and its Addendum. The report used actuarial forecasts and estimates to determine the EI premium rate and the MIE. It also calculated the premium reductions related to the QPIP and for employer wage-loss plans under the PRP.
7-year forecast break-even rate
The 7-year forecast break-even rate for 2026 is $1.63 per $100 of insurable earnings. This represents a decrease of 1 cent from the forecast 2025 rate of $1.64 per $100 of insurable earnings.
2026 premium rate
The EI premium rate for 2026 is $1.63 per $100 of insurable earnings for workers ($2.28 for employers).
Quebec Parental Insurance Plan premium reduction
The 2026 QPIP reduction is 33 cents. The premium rate for Quebec residents is $1.30 per $100 of insurable earnings ($1.82 for employers in Quebec).
Residents of a province that administers its own insurance plan can receive premium reductions. This plan must reduce or replace federal EI benefits. EI premium rates are lower for Quebec residents because the province administers its own parental insurance plan. Quebec workers and employers finance this plan.
Premium Reduction Program
Employers can receive premium reductions if they provide their employees with qualified wage-loss plans. These plans must meet certain requirements and reduce special benefits (for example, sickness benefits) payable.
There are approximately 24,600 employers registered in the PRP. This covers an estimated total amount of insurable earnings in 2026 of about $414 billion.
There are 4 categories of qualified plans. Each category has a rate of reduction that is determined each year. The calculations reflect each category's average rate of savings for EI. In 2026, reductions will provide registered employers and their employees with an estimated $1.457 billion in premium savings. Table 1 shows the premium reductions.
| Categories | Category 1 | Category 2 | Category 3 | Category 4 |
|---|---|---|---|---|
| Premium reduction (per $100 of insurable earnings) | $0.21 | $0.38 | $0.38 | $0.42 |
Maximum Insurable Earnings
Workers and employers pay EI premiums on insurable employment income. Those premiums are paid up to an income threshold, which is the MIE. This threshold also determines the maximum weekly benefit rate in a calendar year. The MIE for 2026 is $68,900. This is an increase from $65,700 in 2025. The maximum weekly benefit rate for 2026 is $729, an increase from $695 in 2025.
Statistics Canada publishes average weekly earnings of the industrial aggregate in Canada. The MIE is indexed to the annual percentage increase in this value. This ensures that the level of insured income maintains its relative value.
Table 2 shows the maximum amounts of premiums payable by workers and employers (per employee) for 2026. It is based on the MIE and premium rates.
| Contributor | Premium rate (per $100 of insurable earnings) | Maximum annual contribution 2026 | Difference in maximum annual contribution from 2025 |
|---|---|---|---|
| Workers | $1.63 | $1,123.07 | $45.59 |
| Employers | $2.28 | $1,572.30 | $63.83 |
| Workers residing in Quebec | $1.30 | $895.70 | $35.03 |
| Employers in Quebec | $1.82 | $1,253.98 | $49.04 |
Self-employed workers
Self-employed workers can access special benefits. They must opt-in to the EI program and pay the employee premium rate. They do not pay the employer portion of EI premiums.
A self-employed worker who opts-in to the EI program may qualify for special benefits if they meet prescribed conditions. This includes having a minimum amount of self-employed earnings. For 2026, the minimum amount of self-employed earnings is $9,254.
The minimum level of self-employed earnings is indexed to the growth in the MIE. It is calculated each year. This ensures the minimum level of earnings retains its relative value over time.
EI Operating Account projections
The Senior Actuary's report projects the EI Operating Account to show a cumulative deficit of $17.159 billion as of December 31, 2025. The cumulative deficit is expected to increase slightly to $18.991 billion as of December 31, 2026. This projection is based on the premium rates described above. Table 3 shows the forecast revenues and expenditures.
| Calendar year | Premium rate (%) | Employer contribution rate by employee (%) | Net premiums | Expenditures | Annual surplus (deficit) | Cumulative surplus (deficit) 31 December |
|---|---|---|---|---|---|---|
| 2024 | 1.66% | 2.32% | 31,620 | 27,642 | 3,979 | (16,921) |
| 2025 | 1.64% | 2.30% | 32,161 | 32,399 | (238) | (17,159) |
| 2026 | 1.63% | 2.28% | 33,487 | 35,319 | (1,832) | (18,991) |