Employment Insurance premiums will be reduced by one cent next year, a change the EI Commission says is worth billions over time.The cut lowers worker premiums from $1.64 to $1.63 per $100 of insurable earnings, while employers continue to pay 1.4 times the employee rate. Blacklock's REporter reported the Commission said a one cent variation in premiums between 2026 and 2032 would amount to a $1.76 billion difference in the program’s balance.“Actual 2024 expenditures were lower than projected,” said the Chief Actuary, noting the fund’s deficit decreased. .Premiums are adjusted annually to maintain a break-even rate within seven years, though cabinet previously froze them at $1.58 during the pandemic before raising them as high as $1.66.The Department of Employment said $1.63 is at a historical low, 10¢ below the 2008–2010 level and 25¢ below the 2015 rate of $1.88. A departmental briefing warned, however, that future improvements to the program could require higher premiums, particularly if the economy slows.Then–employment minister Randy Boissonnault told MPs in 2024 that EI premiums must be managed with care. “We want to have a robust system especially if we see there could be a recession or a slowdown in the economy,” he said. Boissonnault described EI as the nation’s “most important income support program,” providing assistance to about two million Canadians every year.
