Summary of the 2027 Actuarial Report on the Employment Insurance Premium Rate
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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
The Canada Employment Insurance Commission
The Canada Employment Insurance Commission (the Commission) presents its summary of the 2027 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.
EI program changes announced between September 12, 2025, and July 22, 2026
1. Extending temporary measures to facilitate access to EI
In March 2026, three temporary measures to support workers and employers affected by tariffs from the United States and other trading partners were extended by 6-months to October 10, 2026:
- waiving the one-week EI waiting period
- suspending the treatment of monies paid on separation; and
- providing 20 extra weeks of regular benefits for long-tenured workers
2. Work-Sharing program
The new Worker Retention Grant for Work-Sharing employers was launched on February 17, 2026, for employers in all sectors who have an active Work-Sharing agreement and who commit to supporting training for their employees that are working reduced hours. This new grant, which is in place until March 31, 2027, will allow Work-Sharing employers to provide additional income top-ups to their employees who are working reduced hours under an active Work-Sharing agreement and participating in training on the days they are not working and receiving EI benefits.
As part of the measures to support workers and employers affected by tariffs, the temporary special measures for the Work-Sharing program first introduced on March 7, 2025, for a one-year period, were all extended to March 31, 2027. This extension supports continued enhanced access to Work-Sharing, including by expanding eligibility for employers and workers and increasing the duration of Work-Sharing agreements to help avoid layoffs.
3. Special benefits
In May 2026, the Government of Canada provided royal recommendation and introduced amendments to Private Member's Bill C-222 to allow EI parental benefits to continue to be paid up to the maximum number of weeks following the death of a child and to ensure parents near the end of their claim could each receive at least five weeks of parental benefits. As of the June 2026 adjournment of the House of Commons, this bill was at Report Stage in the House and would need to complete Third Reading and be reviewed in the Senate before it could be considered for royal assent.
4. Real-Time Payroll
Budget 2025 announced an initiative to assess the feasibility of using real-time payroll information to support the administration of Employment Insurance eligibility and benefit entitlement.
5. Seasonal claimants
On April 28, 2026, the Spring Economic Update (SEU) 2026 announced an extension to October 2028 of the current temporary legislated measure that provides up to 5 additional weeks of regular benefits to eligible seasonal claimants in 13 targeted EI regions. This measure received royal assent in June 2026.
6. Measures to support apprentices
The SEU 2026 also announced several measures to support apprentices under the new Team Canada Strong initiative. Among these measures, the following are to be funded from the EI Operating Account:
- reducing certification delays and improving the national consistency of the Red Seal program by introducing online exams, digital logbooks, and secure credentials
- creating a single National Registered Apprentice Number (NRAN) and interoperable apprenticeship data system to obtain timely, accurate, comparable, and longitudinal data on apprenticeship participation and outcomes across Canada; and
- introducing an Apprenticeship Training Grant, which would provide eligible apprentices with an income top up of $400 per week while they are attending mandatory in-class technical training. The grant would be paid in addition to Employment Insurance regular benefits
7. Labour Market Development Agreements
On July 16, 2026, the Government announced an additional Team Canada Strong investment of $2 billion over five years, starting in 2026-2027, through new bilateral agreements with the provinces and territories to expand access to pre-apprenticeship and technical training. This investment will be funded from the EI Operating Account and will support creating new training spaces, hiring additional instructors, enhancing learning pathways with innovative approaches, and addressing the equipment and material needs of training providers. These activities will help provinces and territories to improve access to pre-apprenticeship by reducing waitlists, help eliminate waitlists by creating new training spaces, support higher completion rates and reduced start-to-end apprenticeship durations, improve labour mobility for certified skilled trades by accelerating Red Seal trade completions, and establish stronger, more consistent data collection and reporting across apprenticeship systems throughout Canada.
Additional EI-funded changes announced on August 25, 2026
The following additional EI-funded measures have been announced on August 25, 2026, to support workers impacted by tariffs:
- extending by one year the temporary EI measure to waive the 1-week waiting period
- extending by one year the temporary EI measure that allows workers to receive EI benefits without first using up their separation payments (such as severance or vacation pay)
- extending by 8 months the temporary EI measure that provides an extra 20 weeks of EI regular benefits for long-tenured workers
- introducing a new temporary measure for one year so that workers who have voluntarily left jobs in recent months are no longer penalized when they want to access EI, as long as their most recent job loss is through no fault of their own
- increasing supports to match workers with jobs on JobBank.gc.ca, including highlighting opportunities made available through investments in major projects, Build Canada Homes, and defence procurement
- establishing a new Workforce Retention and Retraining Program, combining the existing EI Work-Sharing program and Worker Retention Grant into a single, streamlined program designed to be more accessible and generous
2027 premium rate
Based on the information contained in the actuarial report and its addendum, the Memorandum - Estimated Impact of Recent Announcements on the 2027 7-Year Forecast Break-Even Rate and on the EI Operating Account, the Senior Actuary has forecasted the 7-year break-even rate for 2027 at $1.64 per $100 of insurable earnings. This is a 1-cent increase from the 2026 7-year forecast break-even rate of $1.63 per $100 of insurable earnings.
A combination of several factors contributed to this 1-cent increase when compared the 2026 actuarial projections. These include the costs of the EI program changes and investments announced since September 12, 2025 , including the introduction of new and enhanced measures through the Rapid Response Supports for Workers and Employers to protect Canadian workers and businesses impacted by tariffs announced on August 25, 2026, an update to the methodology for calculating administration costs over the forecast period, and the update of costs for past program changes. This increase is partially offset by a lower than anticipated cumulative deficit as of December 31, 2025, a decrease in the projected average unemployment rate, changes in economic assumptions, and the change in the 7-year period from 2026-2032 to 2027-2033.
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 2027 to 2033 period would result in an increase or decrease of about 6 cents in the 2027 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, 2026, on the break-even rate. These measures represent an incremental increase of 2-cents on the break-even premium rate, bringing the 7-year break-even rate for 2027 to $1.64 per $100 of insurable earnings.
The 2027 EI premium rate is set at $1.64 per $100 of insurable earnings for workers. The 2027 premium rate for workers who reside in Quebec is $1.29 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 2027, the premium rate for employers is $2.30 per $100 of insurable earnings. For employers in Quebec, the premium rate for 2027 is $1.81 per $100 of insurable earnings.
Variations in the premium rate affect the EI Operating Account's cumulative balance. A ±1 cent variation over 2027 to 2033 would result in a $1.888 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 2027 Actuarial Report on the EI premium 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 2027 is $1.64 per $100 of insurable earnings. This represents an increase of 1-cent from the forecast 2026 rate of $1.63 per $100 of insurable earnings.
2027 premium rate
The EI premium rate for 2027 is $1.64 per $100 of insurable earnings for workers ($2.30 for employers).
Quebec Parental Insurance Plan premium reduction
The 2027 QPIP reduction is 0.35 cents. The premium rate for Quebec residents is $1.29 per $100 of insurable earnings ($1.81 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 23,800 employers registered in the PRP. This covers an estimated total amount of insurable earnings in 2027 of about $440 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 2027, reductions will provide registered employers and their employees with an estimated $1.687 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) | $0.22 | $0.42 | $0.41 | $0.46 |
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 2027 is $70,800. This is an increase from $68,900 in 2026. The maximum weekly benefit rate for 2027 is $749, an increase from $729 in 2026.
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 2027. It is based on the MIE and premium rates.
| Contributor | 2027 Premium rate (per $100 of insurable earnings) | Maximum annual contribution 2027 | Difference in maximum annual contribution from 2026 |
|---|---|---|---|
| Workers | $1.64 | $1,161.12 | $38.05 |
| Employers | $2.30 | $1,625.57 | $53.27 |
| Workers residing in Quebec | $1.29 | $913.32 | $17.62 |
| Employers in Quebec | $1.81 | $1,278.65 | $24.67 |
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 2027, the minimum amount of self-employed earnings is $9,515.
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 addendum to the Senior Actuary's report projects the EI Operating Account to show a cumulative deficit of $15.623 billion as of December 31, 2026. The cumulative deficit is expected to increase to $16.726 billion as of December 31, 2027. 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 |
|---|---|---|---|---|---|---|
| 2025 | 1.64% | 2.30% | 32,664 | 30,887 | 1,777 | (15,144) |
| 2026 | 1.63% | 2.28% | 34,408 | 34,887 | (479) | (15,623) |
| 2027 | 1.64% | 2.30% | 35,637 | 36,741 | (1,104) | (16,726) |