If an employee has insurable employment, Employment Insurance premiums are deducted from their insurable earnings.
The Employment Insurance premium rate for 2017 is 1.63%. This percentage is taken from each paycheque.
The yearly maximum insurable earnings are set at $51,300, making the maximum employee premium $836.19. This means that EI premiums will not be taken on any income earned over $51,300.
Employers are also required to contribute to employment insurance for each employee. As in previous years, employer premiums are 1.4 times the employee contribution. As such, the maximum employer premium for the year is therefore $1170.67.
Employment Insurance provides individuals with a source of income if they:
- lose their job (at no fault of their own)
- become ill or injured and are unable to work
- are pregnant, recently gave birth or are adopting
- are taking care of a newborn
- are carrying for a critically ill or injured child
- are a self-employed fisher seeking work
- work in a seasonal industry where annual layoffs occur during the off season
To find out how to apply for benefits, visit the Government of Canada Website.
