Canadians eligible for Employment Insurance (EI) will get a higher maximum and pay lower premiums in 2025.
As Canadians struggle with record unemployment during a cost-of-living and housing crisis, the federal EI program helps many stay afloat.
Unemployed workers looking for work or taking time to upgrade their skills are given temporary income support under the EI program. However, other workers who take time off due to certain life events are also eligible for special benefits. Examples of such cases include pregnancy, illness, new parenthood and taking care of someone who is ill, injured or at risk of death.
Additionally, only workers who have paid premiums on their income in the past year are entitled to EI benefits. Self-employed people can also pay these premiums to ensure a safety net in uncertain times.
According to the government, the maximum insurable earnings (MIE) is the income level up to which EI premiums are paid.
The MIE determines the maximum rate of weekly benefits paid for all benefits under the EI program.
Lower premiums, bigger payouts in 2025
Starting this year, Canadians will receive more money in EI while paying a lower premium.
On January 1, 2025, new rules kicked in, bringing the MIE from 63,200 to $65,700.
“The maximum annual EI contribution for a worker will increase by $28.36 to $1,077.48 (up $39.70 for employers to $1,508.47 per employee),” Employment and Social Development Canada (ESDC) announced last fall about the now in-effect changes.
Under the Premium Reduction Program, premium rates for employers went from $2.32 to $2.30 for every $100. The rate for employees is $1.64 per $100 of insurable earnings (down from $1.66).
What does this look like in practice?
In simpler terms, a payroll deduction of $1.64 is made for every $100 a worker is paid until the MIE is reached for 2025.
Here’s an example from the government: If an employee earns $75,000 per year, premiums must be paid only on the first $65,700. The employee will pay a maximum annual EI premium of $1,077.48, compared with $1,049.12 in 2024. That may look like $28.36 more annually, but this means much higher weekly maximums in EI benefits.
For EI claims filed this year, the maximum weekly EI benefit rate increases to $695 per week from $668 in 2024. That’s already $27 higher per week.
The maximum weekly benefit rate for extended parental benefits filed in 2025 also increases from $401 to $417.
Quebec workers will pay the lowest premium rate in Canada: $1.31 for every $100 in insurable earnings.
“This rate is lower than in the rest of Canada because Quebec collects premiums and administers its own maternity, parental and paternity benefits under the Quebec Parental Insurance Plan,” the ESDC explained.
How much extra EI can I get this year?
According to the feds, workers eligible for EI can receive it from 14 weeks up to a maximum of 45 weeks, depending on the unemployment rate in their region at the time of filing the claim, plus the number of insurable hours accumulated in the last 52 weeks or since the previous claim — whichever is shorter.
With an additional $27 per week (maximum), you will get a total of $378 extra for 14 weeks and $1,215 for a maximum of 45 weeks.
That addition results in a maximum EI payment of $9,730 for 14 weeks and $31,275 for 45 weeks.
