Employment Insurance Rates Reduced for 2020

On September 13, the Canada Employment Insurance Commission announced the maximum EI insurable earnings and the premium rate for 2020*. The new premium rate and maximum insurable earnings will affect the first payroll of 2020. Here’s how:

The Commission determines the rate based on the rate required to balance the EI Operating Account over the next seven years. The employee rate outside of Quebec will decrease from 1.62% to 1.58% while the rate in Quebec will be 1.20%. Employers will continue to pay 140% of the amount the employee pays (2.212% outside Quebec, 1.68% in Quebec). However, this decrease may be short-lived. The Employment Insurance Training Support Benefit announced in the 2019 Federal Budget is expected to launch in late 2020 and will likely result in an increase to the EI rate beginning in 2021.

Further changes to EI in 2020 are the maximum EI insurable earnings will increase from $53,100 (2019) to $54,200. The maximum premium for employees will be reduced from $860.22 to $856.36 while the maximum premium for employers will be reduced from $1,204.31 to $1,198.90. The 2019 Federal budget announced a Small Business EI Rebate for employers who pay $20,000 or less in EI premiums, expected to take effect for 2020, but no details have been announced to date.

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* Employment and Social Development Canada – September 13, 2019 News Release

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