OTTAWA: Major updates to Canada’s Employment Insurance (EI) program are set to take effect in January 2027, bringing higher weekly payouts for claimants alongside adjusted payroll deductions for workers and employers. Employment and Social Development Canada (ESDC) announced the new rates, which are indexed to reflect inflation and growth in average industrial wages across the country.
Beginning January 1, 2027, the Maximum Insurable Earnings (MIE) threshold will increase from $68,900 to $70,800. Workers and employers only pay EI premiums on earnings up to this annual ceiling. For employees outside Quebec, the premium rate will tick up slightly from $1.63 to $1.64 per $100 of insurable earnings, bringing the maximum annual worker contribution to $1,161.12—an increase of $38.05 over 2026. In Quebec, which administers its own parental insurance plan, the employee rate will edge down from $1.30 to $1.29 per $100, though the higher earnings ceiling will bring the maximum annual contribution to $913.32.
Claimants applying for benefits on or after December 27, 2026, will see higher weekly support. Because benefits are calculated at 55 percent of average insurable weekly earnings, the higher earnings cap pushes the maximum weekly EI payout from $729 to $749. This $20 weekly boost applies across regular unemployment benefits as well as sickness, maternity, standard parental, and caregiving benefits. Additionally, the maximum weekly rate for extended parental benefits will increase from $437 to $449.
Alongside the annual rate adjustments, Ottawa is extending key temporary relief measures to support workers navigating economic transitions. The waiver of the standard one-week waiting period for new EI claims and flexible rules regarding severance pay will remain in place until October 9, 2027. Furthermore, long-tenured workers will continue to qualify for up to 20 extra weeks of regular benefits through June 12, 2027. Self-employed Canadians opted into the special benefits program will need to have earned a minimum of $9,515 in 2026 to qualify for claims filed in 2027.
