Canada Employment Insurance (EI) Rules — What Changed in 2026

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Canada Employment Insurance (EI)
Canada Employment Insurance (EI)

Canada Employment Insurance (EI) — What changed in 2026 (quick answer)

In 2026 the big-picture changes are: a slightly lower employee premium rate but a higher maximum insurable earnings, which pushes the maximum annual premium up — and the maximum weekly EI benefit rose to $729. Important temporary measures (including a waived waiting week for many new claims) are also active into 2026 and can speed up access to benefits for people laid off right now.

Why this matters (in plain English)

  • What you pay: Payroll EI deductions are now calculated using the 2026 rate and cap.
  • What you might receive: Weekly EI payouts can be higher because the insurable earnings cap increased.
  • Timing and tracking: Temporary government changes mean some claimants start getting EI faster than in a “normal” year.

The headline numbers (2026)

  • EI premium rate (employees, outside Quebec): 1.63% (that’s $1.63 per $100 of insurable earnings). Employers generally pay 1.4× the employee rate.
  • Maximum insurable earnings (MIE): $68,900 for 2026. This is the earnings cap used to calculate both premiums and the benefit ceiling.
  • Maximum weekly benefit (regular EI): $729 per week (55% basic calculation).
  • Quebec note: Quebec uses a different employee premium rate (lower) because QPIP covers parental benefits there — check provincial figures for payroll.

Temporary measures you need to know (short & actionable)

Several temporary rules remain in effect into 2026 and they materially change early claim weeks:

  • Waiting period waived for claims starting in the temporary window — meaning you may get paid sooner than usual.
  • Separation earnings allocation suspended for claims in the same window — severance or pay-in-lieu may not reduce EI during that timeframe.
  • Extra weeks for long-tenured workers: Eligible claimants may receive up to 20 additional weeks, up to a 65-week max, if they meet Service Canada criteria.

Bottom line: If you were laid off recently or expect reduced hours, check whether your claim falls inside these temporary windows — the timing can change your cash flow.

How EI payments are calculated (simple)

  • EI regular benefits use a base rate of 55% of your average insurable weekly earnings, up to the maximum weekly cap ($729 in 2026). Final amounts depend on your exact earnings history and Service Canada’s calculation.

What employers and payroll teams should do now

  1. Update payroll settings to apply the 2026 premium rate and $68,900 cap.
  2. Inform employees — high earners may see larger total annual EI deductions because the earnings cap rose.
  3. Review severance and top-ups (SUB plans) to decide whether a claimant should accept the waived waiting period or not.

Quick provincial roundup (GEO-focused)

  • Across Canada (general): The MIE and federal figures above apply.
  • Quebec: Employee premium rate is lower and QPIP affects parental benefits — use Quebec payroll guidance for exact deductions.
  • Best practice for provincial employers: Always confirm with CRA/Service Canada payroll pages each January to ensure your payroll tables match the latest federal and provincial rules.

FAQ (AEO-friendly — short answers for featured snippets)

Q: What is the maximum weekly EI benefit in 2026?
A: $729 per week (based on 55% of average insurable weekly earnings, up to the 2026 cap).

Q: What is the EI premium rate in 2026?
A: For employees outside Quebec the rate is 1.63% (or $1.63 per $100 of insurable earnings). Employers generally pay 1.4× that rate.

Q: Did the waiting week change in 2026?
A: Yes — temporary measures waived the one-week waiting period for eligible claims inside the government’s temporary window, so some claimants receive benefits sooner.

Q: Will severance reduce my EI in 2026?
A: Normally separation earnings can reduce EI, but under the temporary allocation suspension (for claims in the temporary window) some separation pay may not be deducted. Check claim dates and Service Canada guidance.

Takeaway + next steps (what to do this week)

  • If you run payroll: update rates and caps now and notify staff. (Canada)
  • If you’re an employee facing layoff: file promptly and confirm whether your claim date falls inside the temporary window — this affects waiting-week treatment and severance allocation.
  • If you want help interpreting your specific situation (severance, top-ups, or provincial quirks), GFK Immigration Inc. can review your case and suggest next steps. 

    #CanadaEI #EmploymentInsurance #CanadaJobs #CanadaImmigration #ImmigrationNews #WorkInCanada #CanadaPolicy

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