EI Rate 2026: New Payment Rates & Maximum Benefits Explained

The Government of Canada and the Canada Employment Insurance Commission (CEIC) have officially confirmed the Employment Insurance (EI) parameters for the 2026 calendar year.

These updates include significant changes to the premium rates, the maximum insurable earnings threshold, and the resulting weekly benefit amounts that workers can receive.

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These adjustments are designed to reflect the current economic landscape, including wage growth and the financial sustainability of the EI Operating Account.

For millions of Canadian workers and employers, these changes directly impact take-home pay and the level of financial support available during periods of unemployment, sickness, or parental leave.

Official 2026 EI Premium Rates for Employees and Employers

The federal government has set the 2026 EI premium rate at $1.63 per $100 of insurable earnings for employees.

This represents a slight decrease of one cent from the 2025 rate of $1.64. While the rate itself has decreased, the total amount paid by workers may still rise due to an increase in the income ceiling, known as the Maximum Insurable Earnings.

Employers continue to pay 1.4 times the employee rate. For 2026, the employer premium rate is set at $2.28 per $100 of insurable earnings.

These funds are used to finance the EI program, which provides temporary income support to unemployed workers while they look for employment or to those who take time off work due to specific life events.

The 2026 rate was determined based on the 2026 Actuarial Report on the Employment Insurance Premium Rate, which aims to reach a seven-year break-even point for the EI Operating Account.

By adjusting the rate slightly downward, the commission ensures that the fund remains stable while providing some relief to workers and businesses.

Maximum Insurable Earnings (MIE) for 2026

One of the most critical figures in the EI system is the Maximum Insurable Earnings (MIE). This is the annual income limit upon which EI premiums are paid and the basis for calculating benefit amounts.

For 2026, the MIE has been increased to $68,900, up from $65,700 in 2025. This increase is indexed to the growth in average weekly earnings in Canada. If an individual earns more than $68,900 in a year, they do not pay EI premiums on the portion of their income that exceeds this limit.

Likewise, any income earned above this threshold is not factored into their benefit calculations if they lose their job.

Because the MIE has increased, the maximum annual contribution for a worker has also risen despite the lower percentage rate.

• Maximum Annual Employee Contribution (Outside Quebec): $1,123.07
• Maximum Annual Employer Contribution (Outside Quebec): $1,572.30

Maximum Weekly EI Benefit Rates in 2026

The increase in the MIE directly leads to a higher maximum weekly benefit for claimants. For most EI claims, the benefit amount is calculated as 55% of your average weekly insurable earnings.

Starting in 2026, the maximum weekly EI benefit rate will increase to $729 per week, compared to $695 in 2025. This ensures that the safety net keeps pace with the rising cost of living and wage trends across the country.

Benefit Rates for Specific Situations

While the standard rate is $729, different benefit types have specific maximums:

• Regular, Sickness, and Maternity Benefits: $729 per week.
• Standard Parental Benefits: $729 per week.
• Extended Parental Benefits: $437 per week (calculated at 33% of average weekly insurable earnings for a longer duration).

These new rates apply to all new claims that begin on or after the effective date of the 2026 changes. If you already have an active EI claim that started in 2025, your benefit amount will generally remain at the rate established when your claim began.

Comparative Data Table: 2025 vs. 2026

The following table outlines the primary differences between the 2025 and 2026 EI structures to help individuals and payroll departments prepare for the transition.

Feature	2025 Rate	2026 Rate	Change
Employee Premium Rate (Outside QC)	$1.64 per $100	$1.63 per $100	– $0.01
Maximum Insurable Earnings (MIE)	$65,700	$68,900	+ $3,200
Max Annual Employee Premium	$1,077.48	$1,123.07	+ $45.59
Max Annual Employer Premium	$1,508.47	$1,572.30	+ $63.83
Maximum Weekly Benefit	$695	$729	+ $34

EI Rates for Residents of Quebec

Quebec has a unique arrangement within the federal EI system because the province administers its own parental insurance plan, the Quebec Parental Insurance Plan (QPIP).

Because QPIP covers maternity, parental, and adoption benefits, the federal EI premium rate is lower for workers in Quebec.

For 2026, the Quebec EI premium rate for employees is $1.30 per $100 of insurable earnings. Employers in Quebec pay $1.82 per $100.

• Maximum Annual Employee Premium (Quebec): $895.70
• Maximum Annual Employer Premium (Quebec): $1,253.98

The Maximum Insurable Earnings of $68,900 remains the same across all provinces, including Quebec. This ensures a consistent ceiling for unemployment and sickness benefits across the nation.

Temporary Measures and Enhanced Access in 2026

In response to evolving economic conditions and trade-related shifts, the Government of Canada has implemented several temporary measures to enhance access to EI benefits. These measures are designed to provide a more robust cushion for vulnerable workers and those in industries facing instability.

Waiving the One-Week Waiting Period

Normally, there is a one-week waiting period before a claimant starts receiving EI payments. Under a current temporary measure, this waiting period is waived for all new claims starting between March 30, 2025, and April 11, 2026. This allows workers to receive their first payment faster, supporting immediate financial stability after a job loss.

Additional Weeks for Long-Tenured Workers

The government has introduced extra support for “long-tenured workers”—those who have been in the workforce for years and have rarely used EI. For claims starting between June 15, 2025, and April 11, 2026, eligible long-tenured workers may receive up to 20 additional weeks of regular benefits.

This can extend the maximum duration of benefits to a total of 65 weeks. This measure aims to give workers more time to reskill or find comparable employment in a shifting job market.

Treatment of Separation Earnings

Another temporary adjustment involves how “separation earnings” (such as severance pay or vacation pay) are handled. For claims starting before April 11, 2026, these payments are not deducted from EI benefits in the way they traditionally were. This allows claimants to keep their severance while also accessing EI support immediately.

Impact on Business Owners and Payroll Management

Employers must update their payroll systems to reflect these new figures by January 1, 2026. Failure to deduct the correct amounts can lead to administrative errors and the need for future adjustments.

Key actions for employers include:

• Updating the employee deduction rate to 1.63% (1.30% in Quebec).
• Adjusting the employer contribution multiplier to 2.28% (1.82% in Quebec).
• Updating the MIE threshold to $68,900 to ensure deductions stop at the correct limit.
• Communicating these changes to employees, as they will see a slight increase in the total annual EI deduction on their pay stubs.

Businesses that offer their own short-term disability plans may be eligible for a reduction in their EI premiums through the EI Premium Reduction Program. If an employer’s private plan meets certain standards, they can apply for a lower multiplier, as their private plan reduces the burden on the federal EI system.

Eligibility and Application Process for 2026

To be eligible for EI regular benefits in 2026, individuals must generally:

1. Have been employed in insurable employment.
2. Have lost their job through no fault of their own (e.g., layoff, seasonal work, or shortage of work).
3. Have been without work and without pay for at least seven consecutive days.
4. Have worked the required number of insurable hours in the last 52 weeks or since the start of their last claim.

The number of hours required varies between 420 and 700 hours, depending on the regional unemployment rate where the claimant lives. In areas with higher unemployment, fewer hours are required to qualify.

Claimants should apply as soon as they stop working. Delaying the application for more than four weeks after the last day of work may result in a loss of benefits. The application is completed online through the Service Canada website.

Summary of the 2026 EI Outlook

The 2026 Employment Insurance changes represent a balance between lowering the premium rate and increasing the coverage ceiling. While the percentage of income deducted is slightly lower, the higher MIE ensures that more of a worker’s income is protected, leading to a record maximum weekly benefit of $729.

Combined with temporary measures like the waiving of the waiting period and extended benefits for long-tenured workers, the EI program remains a vital pillar of the Canadian social safety net.

Workers and employers should review their financial plans and payroll settings to align with these new federal standards. For the most accurate and personalized information regarding a specific claim, individuals are encouraged to use the My Service Canada Account (MSCA) portal.

Frequently Asked Questions