EI Premiums 2026: Max $1,123.07 Explained
Your pay stub has a line you probably never question: EI. In 2026, Canadian employees pay $1.63 for every $100 of insurable earnings — on the first $68,900 of pay, which caps your annual EI bill at $1,123.07. The rate actually dropped a cent from 2025, yet most people pay more anyway. Here's the 2026 math, where the cap kicks in, and what your premiums actually buy.
How we check the numbers: every figure on this page is calculated from official CRA, Statistics Canada or Bank of Canada data and cross-checked with the free calculators on this site — run them yourself to verify.
The short version
The Canada Employment Insurance Commission set these numbers on September 12, 2025, based on the 2026 Actuarial Report on the EI Premium Rate. The employee rate fell one cent from 1.64% — but maximum insurable earnings jumped $3,200, from $65,700 to $68,900. That's why the most you'll pay still rose $45.59 for the year.
How the $1,123.07 is calculated
The formula is simple:
Two things make EI different from CPP:
- EI starts from the first dollar. CPP skips the first $3,500 of earnings; EI has no basic exemption — the 1.63% applies to your entire pay until the cap.
- Every pay period is the same math. Biweekly? That's about $43.20 per cheque ($1,123.07 ÷ 26) while you're under the cap. Monthly? About $93.59 ($1,123.07 ÷ 12).
What different salaries actually pay in 2026:
- $50,000 salary → $815.00 a year (never hits the cap)
- $60,000 salary → $978.00 a year (never hits the cap)
- $68,900 salary → $1,123.07 a year (cap hit exactly)
- $80,000 salary → $1,123.07 a year (capped — the extra $11,100 is EI-free)
Your employer pays more than you do
Employers pay 1.4 times the employee rate — that's the law, not a choice. In 2026 that means 2.282% of your insurable earnings, up to $1,572.30 per employee (up $63.83 from 2025).
The good news for your pay stub: that employer share comes out of the employer's pocket, on top of your pay. It never shows up as a deduction on your side.
Employers that offer qualified short-term disability plans can apply for a premium reduction — in 2026 that's worth up to $261.68 per employee, shared between employer and worker. Five-twelfths of any savings must go back to employees.
Quebec pays less, thanks to QPIP
Quebec administers its own parental insurance plan (QPIP), so EI premiums there skip maternity, parental and adoption benefits. The 2026 Quebec numbers:
The 33-cent premium reduction is set by the Commission each year. Quebec employees hit the same $68,900 earnings ceiling — just at a lower rate.
What the premiums buy: up to $729 a week
EI isn't just for layoffs. Your premiums fund regular benefits, maternity and parental leave, sickness benefits, compassionate care and family caregiver benefits. For 2026:
The $729 maximum applies to claims starting on or after December 28, 2025. In 2027, the ceiling rises again: CRA already lists maximum insurable earnings of $70,800 with a 1.64% rate, for a $1,161.12 employee maximum.
Three pay-stub checks worth doing
- Find your YTD EI total. If your earnings passed $68,900 and EI is still being deducted, your payroll is overcharging you.
- Changed jobs this year? Each employer applies the annual cap separately, so two jobs can push you past $1,123.07. The CRA refunds the employee overpayment when you file your tax return.
- Watch the December bump. If you cross $68,900 late in the year, your last pay cheques of December get slightly bigger — that's the cap doing its job.
Frequently asked questions
Why did my EI premiums go up if the rate went down in 2026?
The employee rate did drop from 1.64% to 1.63%, but maximum insurable earnings jumped $3,200 to $68,900. Because the earnings ceiling rose faster than the rate fell, the maximum annual premium still increased $45.59 — from $1,077.48 to $1,123.07.
When do EI deductions stop in 2026?
EI comes off every pay until you have paid $1,123.07 or your insurable earnings reach $68,900 — whichever happens first. After that, deductions stop for the rest of the calendar year with that employer.
Why does my employer pay more EI than I do?
By law, employers pay 1.4 times the employee rate — 2.282% in 2026 — up to $1,572.30 per employee. That share comes out of the employer's pocket on top of your pay; it's not deducted from your wages.
Why is EI cheaper in Quebec?
Quebec runs its own parental insurance plan (QPIP), so EI premiums there exclude maternity, parental and adoption benefits. Quebec employees pay 1.30% in 2026, capped at $895.70 — a $227.37 saving versus the rest of Canada.
What happens if I change jobs mid-year and overpay EI?
Each employer applies the annual maximum separately, so two jobs in one year can push your total past $1,123.07. The CRA refunds the employee overpayment when you file your tax return — no application needed.
Sources
The other payroll deduction: CPP
EI stops at $1,123.07 — but CPP keeps going. CPP2 takes another $416 in 2026 on earnings between $74,600 and $85,000. And if you want the full paycheque picture, see what a $50,000 Ontario salary actually keeps.
Educational content only — not financial advice. Figures are estimates; confirm your own situation with the CRA or a licensed financial advisor. See our Disclaimer.