How this calculator works
Enter the year's insurable earnings and choose the pay period you want the premium shown for. The 2026 maximum insurable earnings are $68,900, so any earnings above that are ignored. The employee premium is 1.63% of insurable earnings and the employer premium is 1.4 times that, or 2.282%. At the maximum, the employee pays $1,123.07 for the year. Dividing by 12, 26 or 52 gives the amount withheld from a monthly, biweekly or weekly pay. The calculation assumes one employer for the whole year: each employer withholds as if it were the only one, and the maximum is refunded only at tax time. Quebec employees pay a reduced federal EI rate because they also pay the Quebec Parental Insurance Plan, which is out of scope here, as are the premium reduction for employers with a registered wage-loss plan, the self-employed election into EI, and any earnings that are not insurable.
Formula
Insurable earnings = min(annual insurable earnings, $68,900). Employee premium = insurable earnings x 1.63%. Employer premium = insurable earnings x 2.282%. Premium for a pay period = annual premium / 12, 26 or 52.
Worked example
On $60,000 of insurable earnings the employee premium is $60,000 x 1.63%, or $978.00 for the year, and the employer premium is $60,000 x 2.282%, or $1,369.20. That is $81.50 and $114.10 from each monthly pay. At $90,000 the earnings are capped at $68,900, so the employee premium is $1,123.07 and the employer premium is $1,572.30.
Frequently asked questions
Which earnings are insurable?
Most salary, wages and commissions are insurable. Some payments, such as most dividends and certain severance amounts, are not. This page treats all the earnings you enter as insurable.
Why is the employer premium higher?
The employer rate is 1.4 times the employee rate. Employers with a registered wage-loss plan may qualify for a reduction, which is not modelled here.
What is the maximum premium?
The 2026 maximum insurable earnings are $68,900. At 1.63% the employee premium cannot exceed $1,123.07 for the year.
Do Quebec employees pay the same rate?
No. Quebec employees pay a lower federal EI premium because they pay the Quebec Parental Insurance Plan instead of the federal parental benefits. That province's premium is out of scope here.