The Employment Insurance deduction on Canadian paycheques is changing again on January 1, 2027.

The rate increase itself is small: workers outside Quebec will pay $1.64 for every $100 of insurable earnings, compared with $1.63 in 2026.

But the maximum amount a worker can pay rises by more than the one-cent rate change suggests, because the income ceiling subject to EI premiums is increasing as well.

For a worker who reaches the annual maximum, the 2027 employee contribution will be $1,161.12.

The 2027 EI numbers at a glance

The Canada Employment Insurance Commission has set the 2027 employee premium rate at 1.64%, or $1.64 for every $100 of insurable earnings.

Employers generally pay 1.4 times the employee rate, which means a 2027 employer rate of $2.30 per $100 of insurable earnings.

The 2027 Employment Insurance announcement also raises maximum insurable earnings from $68,900 in 2026 to $70,800 in 2027.

Once an employee reaches the annual maximum contribution, regular EI deductions stop for the remainder of that calendar year.

How much more could a worker pay?

The maximum employee EI premium for 2026 is $1,123.07.

In 2027, it rises to $1,161.12.

That is an increase of $38.05 for someone who earns enough to reach the maximum.

The maximum employer contribution rises from $1,572.30 to $1,625.57, an increase of $53.27 per employee.

Maple Curiosity’s CPP and EI Rates 2026 guide provides the current-year numbers for comparison.

What does the rate mean at different incomes?

For workers below the maximum insurable earnings threshold, the basic calculation is relatively straightforward.

At $50,000 of insurable earnings, a 1.64% premium equals approximately $820 for the year.

At $60,000, it is approximately $984.

At $70,000, it is approximately $1,148.

At $70,800, the worker reaches the 2027 annual maximum of $1,161.12.

Someone earning $80,000 or $100,000 does not continue paying regular EI premiums on every dollar above the $70,800 maximum insurable earnings threshold.

This is why the maximum insurable earnings figure matters just as much as the premium rate when comparing one year with another.

The rate only rises by one cent per $100

Compared with 2026, the employee rate is moving from $1.63 to $1.64 per $100 of insurable earnings.

That is a one-cent increase.

Part of the larger increase in the maximum annual contribution comes from the fact that more employment income will be insurable in 2027.

The threshold rises by $1,900, from $68,900 to $70,800.

Why is the rate set at $1.64?

EI premium rates are not simply chosen based on the previous year’s unemployment rate.

The Commission uses a seven-year forecast break-even approach based on actuarial estimates.

According to the 2027 actuarial report summary, the rate is intended to generate enough premium revenue over the forecast period to cover EI program costs and eventually eliminate the cumulative balance in the EI Operating Account.

The report projects a cumulative EI Operating Account deficit of approximately $15.6 billion at the end of 2026.

The actuarial calculation also incorporates economic assumptions and the expected cost of EI program changes.

Those estimates can change over time, which is one reason the premium rate is reviewed annually.

Recent EI program changes also affect the calculation

The 2027 actuarial summary identifies several changes that influence projected EI costs.

These include temporary support measures for workers affected by trade disruptions, extended Work-Sharing measures and additional apprenticeship-related supports.

One recent example is the planned $400 weekly Apprenticeship Training Grant for eligible apprentices attending mandatory technical training.

Maple Curiosity’s skilled-trades support guide explains that program separately, including the $5,000 Red Seal Completion Bonus and employer apprenticeship incentives.

The premium rate does not mean every EI contributor personally receives those specific programs. EI premiums support the broader Employment Insurance system under its eligibility rules.

The maximum weekly EI benefit also rises

The same maximum insurable earnings figure used in the EI system affects the maximum weekly benefit.

The Commission’s actuarial summary lists a maximum weekly EI benefit of $749 in 2027, up from $729 in 2026.

That does not mean every claimant will receive $749 per week.

The actual benefit depends on the applicable EI rules and the claimant’s insurable earnings and circumstances.

Quebec has a different EI rate

Quebec workers pay a lower federal EI premium because Quebec operates its own parental insurance program.

For 2027, the employee EI rate for Quebec residents will be $1.29 per $100 of insurable earnings.

The maximum Quebec employee EI premium will be $913.32.

Employers in Quebec will pay $1.81 per $100, up to a maximum of $1,278.65 per employee.

The different EI rate does not mean Quebec workers have no parental-insurance contributions. The province’s separate Quebec Parental Insurance Plan has its own financing structure.

What about self-employed Canadians?

Self-employed workers are not automatically covered by EI in the same way as regular employees.

Eligible self-employed people can voluntarily opt into the EI program for access to certain special benefits.

Those who opt in pay the employee premium rate rather than both the employee and employer portions.

The 2027 actuarial report lists minimum self-employed earnings of $9,515 for the relevant special-benefit eligibility calculation, subject to the program’s other requirements.

EI is separate from CPP and income tax

A paycheque can contain several deductions at the same time, which makes the change easy to misread.

EI premiums are separate from Canada Pension Plan contributions and separate from federal and provincial income tax.

A worker could therefore see one deduction rise while another changes differently.

For Alberta employees, Maple Curiosity’s Alberta Tax Brackets 2026 guide explains the provincial income-tax side of the paycheque.

What the change means for a household budget

For many employees, the difference between the 2026 and 2027 EI deduction will be relatively small on an individual pay period.

The annual maximum provides a clearer picture of the total effect.

A worker reaching the ceiling will contribute $38.05 more in 2027 than in 2026.

The important point is that both the premium rate and the earnings ceiling are changing.

Looking only at the one-cent increase in the rate understates the change for workers whose income is above the maximum insurable earnings threshold.

Key dates

The new EI rate and maximum insurable earnings take effect on January 1, 2027.

Until then, 2026 payroll continues to use the 2026 rate and maximum.

Employees do not need to submit a separate application for the new premium rate. Employers and payroll systems apply the annual EI deductions through regular payroll calculations.

For workers planning a 2027 budget, the simplest comparison is therefore $1,123.07 as the 2026 maximum employee EI premium versus $1,161.12 in 2027.