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What is EI and How Does It Work?
5 min read · March 3, 2026
What is Employment Insurance?
Employment Insurance (EI) is a federal program that provides temporary financial support to Canadians who lose their job through no fault of their own, or who need to take time off work for specific life events like having a baby, caring for a sick family member, or recovering from a serious illness.
EI is funded by premiums deducted from your paycheque every pay period. Your employer also pays a premium on your behalf — 1.4 times what you pay.
How Much Do You Pay?
| Item | 2026 Rate |
|---|---|
| Employee EI rate | 1.63% of insurable earnings |
| Maximum insurable earnings | $68,900 |
| Maximum annual premium | $1,123.07 |
| Employer contribution | 1.4× employee premium |
| Quebec employee rate | 1.31% (reduced due to QPIP) |
Once you hit the maximum annual premium of $1,123.07, EI stops being deducted from your paycheque for the rest of the year.
Types of EI Benefits
- Regular benefits — if you lose your job through layoff or shortage of work
- Maternity benefits — up to 15 weeks for the birth parent
- Parental benefits — up to 40 weeks standard or 69 weeks extended for parents
- Sickness benefits — up to 26 weeks if you cannot work due to illness or injury
- Caregiving benefits — to care for a critically ill family member
Who Qualifies for Regular EI?
To qualify for regular EI benefits you must:
- Have lost your job through no fault of your own (layoff, end of contract)
- Have worked a minimum number of insurable hours in the past 52 weeks (420–700 hours depending on your region's unemployment rate)
- Be available and actively looking for work
- Be a Canadian citizen, permanent resident, or have a valid work permit
⚠️ Important for newcomers
You must have worked and paid EI premiums in Canada to qualify. EI does not cover self-employed workers unless they have opted in to the program.
How Much Do You Receive?
EI pays 55% of your average insurable weekly earnings, up to a maximum of $695/week in 2026. The benefit period can last between 14 and 45 weeks depending on your region's unemployment rate and how many insurable hours you have accumulated.
How to Apply
- Apply online at canada.ca/ei as soon as you stop working — do not wait
- You will need your SIN, employment history, and Record of Employment (ROE) from your employer
- There is a 1-week waiting period before benefits begin
- You must submit regular reports every 2 weeks to confirm you are still looking for work
EI and Quebec
Quebec residents pay a reduced EI rate of 1.31% instead of 1.63% because Quebec has its own parental insurance program called QPIP (Quebec Parental Insurance Plan). QPIP covers maternity and parental benefits for Quebec workers, so they pay a separate QPIP premium instead.
Quebec workers still pay federal EI and qualify for regular, sickness, and caregiving benefits.
🛡️ See your EI deductions
Use our Paycheck Calculator to see your exact EI premium and which pay period it stops being deducted.