2025-02-25
EI Premiums and Benefits: What Canadians Need to Know in 2025
How Employment Insurance (EI) premiums are calculated, what benefits you can receive, Quebec's QPIP, and how to maximize your EI coverage.
Employment Insurance (EI) provides temporary income support to eligible Canadians who lose their jobs, fall ill, or take parental or compassionate care leave.
2025 EI Premium Rates
| Employee Rate | Employer Rate | |
|---|---|---|
| All provinces (except QC) | 1.64% | 2.296% (1.4× employee) |
| Quebec | 1.32% | 1.848% |
Maximum insurable earnings (2025): $65,700
Maximum annual employee premium (non-QC): $65,700 × 1.64% = $1,077.48
Why Is Quebec Different?
Quebec pays lower EI premiums because the Quebec Parental Insurance Plan (QPIP) provides maternity, paternity, parental, and adoption benefits that EI provides in other provinces. QPIP is funded through separate QPIP premiums on your T4.
What EI Benefits Are Available?
- Regular benefits: Unemployment after layoff; 55% of insurable earnings, up to $695/week (2025)
- Maternity benefits: 15 weeks for birth mothers
- Parental benefits: Standard (40 weeks at 55%) or Extended (69 weeks at 33%)
- Sickness benefits: Up to 26 weeks
- Caregiving benefits: For seriously ill family members
- Self-employed: Can opt into EI for special benefits (maternity/parental/sickness) by paying premiums
Eligibility for Regular Benefits
To qualify for regular EI benefits, you need:
- Insured hours: Typically 420–700 hours of insurable employment in the past 52 weeks (varies by regional unemployment rate)
- Laid off without cause or resigned with just cause
- Available and actively seeking work
The Waiting Period
There’s a 1-week waiting period (no EI paid) before benefits start. This is waived for certain situations like quarantine or adoption.
EI and Self-Employment
Self-employed individuals can opt in to EI to access special benefits (maternity, parental, sickness, compassionate care, and family caregiver). You pay the employee rate on your net self-employment income. You must wait 12 months after registration before claiming.
Regular unemployment benefits are not available to the self-employed who opt in.
Impact on Take-Home Pay
EI premiums are deducted from each paycheque. They also create a non-refundable federal tax credit at the lowest federal rate (15%), partially offsetting the cost.
If your employer provides a short-term disability plan that reduces your EI claim, they may get a reduced employer EI premium rate.
Employer’s Responsibility
Employers must:
- Deduct EI premiums from each insurable payment
- Remit employee and employer premiums to the CRA
- Issue T4 slips showing EI deducted
- Register employees with Service Canada when hired
Use our calculators to apply these concepts to your own income. Tax information is for general guidance only — consult a CPA for advice specific to your situation.