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2020 Employment Insurance Changes

2020 Employment Insurance Adjustments

Employees and their employers will welcome a slight decrease in employment insurance premiums starting on January 1st 2020. 

Changes at a glance

The premium for individual workers will be $1.58 per $100 of insurable earnings while their employers will pay $2.21 per $100 of the workers’ insurable earnings. This represents both a decrease of four cents per $100 for workers and six cents per $100 for employers compared with the 2019 rates.

The annual EI adjustments also include an $1,100 increase in the maximum insurable earnings, which will be $54,200 in 2020.

As a result of adjustments, the maximum annual EI contribution for a worker will fall by $3.86 to $856.36 and employers’ maximum contribution will fall $5.41 to $1,198.90 per employee.

Here’s a summary of the changes below:

Maximum Insurable Earnings Premium Rate per $100 of Insurable Earnings Maximum Annual Contribution Maximum EI Weekly Benefit Payable to Claimants
Rest of Canada
$54,200
Employee: $1.58 Employee: $856.36
$573
Employer:
1.4 times employee premium
Employer: $1,198.90
Quebec
$54,200
Employee: $1.20 Employee: $650.40
$573
Employer:
1.4 times employee premium
Employer: $910.56

Impact on Disability Benefits

This change will affect a Short Term Disability (STD) plan if: 

  • The benefit is a flat amount equal to the EI maximum
  • The STD maximum is equal to the EI maximum 
  • STD benefits are calculated using EI maximum insurable earnings

Looking Onward

In a fiscal update issued Dec. 16, the Ministry of Finance signalled that EI premiums will decrease further in 2021 to $1.55 per $100 of insurable earnings, causing a proportionate decline in what employers pay, which is 1.4 times the individual rate.