EI premiums rising in 2018

Ahead of rate change, business groups are calling for breaks for employers
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 11/09/2017

With employment insurance (EI) premium rates rising next year, some business groups are again calling on the federal government to implement measures to reduce employers’ EI costs.

In September, the Canada Employment Insurance Commission (CEIC) announced that employee EI premium rates would rise from $1.63 per $100 of insurable earnings to $1.66 in 2018 for workers outside of Quebec. For employees in Quebec, the rate will go up from $1.27 to $1.30. (The rates for Quebec are lower because Quebec administers its own parental insurance plan, financed by workers and employers in the province.)

Employers pay 1.4 times the employee rate unless they are eligible for a reduced rate because they have a qualifying wage-loss replacement plan. As a result, for 2018, the rate for employers outside of Quebec will increase from $2.282 per $100 of insurable earnings to $2.324, while the rate for Quebec employers will rise from $1.778 to $1.82.