Understanding how government sponsored programs operate is essential to communicating benefits to all employees. Here is what you need to know regarding Employment Insurance benefits in 2025. The Employment Insurance (EI) program provides temporary income support to unemployed workers while they look for employment or to upgrade their skills. The EI program also provides special benefits to workers who take time off work due to specific life events, including:
- Illness
- Pregnancy
- Caring for a newborn or newly adopted child
- Caring for a critically ill or injured person
- Caring for a family member who is seriously ill with a significant risk of death.
Effective January 1, 2025, the employee EI premium rate is $1.64 per $100. A payroll deduction of $1.64 is made for every $100 an employee is paid until the MIE is reached for 2025.
For claims beginning on or after December 29, 2024, the maximum weekly EI benefit rate increases to $695 per week (from $668) while the maximum weekly benefit rate for extended parental benefits increases to $417 (from $401).
Employer Responsibilities
Employers have a share of the responsibility of making sure the EI program works efficiently for their members. These responsibilities include:
- Advising employees to register for EI benefits as soon as possible after they stop working
- Accurately recording the reason for separation, hours worked, gross earnings, and any money paid or payable on separation
- Ensuring the information on the record of employment (ROE) is accurate. If you intentionally record false or misleading statements, you may be subject to penalties.
- Issuing ROEs when employees stop working. (Find out when you have to issue an ROE.)
- Promptly responding to all Service Canada requests for information
- Storing blank paper ROEs in a safe place and for your business use only
- Contacting Service Canada if:
- You offer work to an EI claimant who does not accept it
- You must pay an employee an arbitration award or similar settlement.
The premium rate will be $1.31. This rate is lower than in the rest of Canada because Québec collects premiums and administers its own maternity, parental and paternity benefits under the Québec Parental Insurance Plan.
- The Province of Québec is responsible for providing maternity, paternity, parental and adoption benefits to its residents. If you’re a resident of Québec, visit the Québec Parental Insurance Plan for more information about those benefits.
EI Estimator:
The Minister of Citizens’ Services announced the launch of the EI Benefits Estimator to support workers during a major life event or due to loss of a job by no fault of their own. The EI Benefits Estimator provides an estimate of eligible benefits and the timeframe based on an actual or potential situation.
The EI Benefits Estimator helps workers get greater clarity on the benefits they could be eligible to receive. By answering a few questions anonymously, workers can quickly and efficiently obtain an estimate of benefits and the duration for which they could receive them, based on their actual or potential situation.
How to Use the EI Estimator:
Answer a few questions to determine which type of EI benefit might be the right one, whether for a current or anticipated situation. The EI Benefit Estimator will provide participants with an estimate of the potential weekly benefit rate and how long someone might be able to receive benefits. Afterward, the estimator will guide participants through the next steps, including when and where to apply if they are ready to proceed.
Step 1: Employment Status
- Are you self-employed?
- Are you planning to apply for benefits for self-employed people?
Step 2: Life Event
- Select the option that best describes your current or anticipated situation so that we can match you to the right benefit type.
- I’m no longer working and looking for a job.
- I’m unable to work for medical reasons.
- I’m pregnant or have recently given birth.
- I’m caring for my newborn or newly adopted child.
- I’m caring for a person who is critically ill or injured.
- I’m caring for a person who requires end-of-life care.
Step 3: Employment Details
- Have you worked at least 600 hours in the last 12 months?
If your hours were consistent, multiply your weekly hours worked by 52. If your hours varied, multiply your average weekly hours by the number of weeks you worked. For example, working 40 hours a week for 15 weeks, or an average of 20 hours a week for 30 weeks is equivalent to 600 hours. If you received EI benefits in that period, only include the hours worked since your last claim started.
- On average, how much did you earn weekly (before taxes) from your employment in the last 12 months?
If your earnings varied or you had multiple employers, enter your average weekly earnings.
- If you received EI benefits in that period, it only includes the average amount you earned every week since your last claim started.
Estimated Results
Once participants have entered the required information, the estimate will appear in a second window. The estimated results may include:
- If the participant is or is not eligible for a specific EI Benefit coverage
- Estimated benefit rate and calculation information
- Maximum number of weeks participant may be eligible for coverage.
Want to stay up to date on the latest legal and regulatory updates impacting your plans? Attend the Canadian Legal and Legislative Update in Winnipeg, Manitoba, May 14-15, 2025, or the 58th Annual Canadian Employee Benefits Conference in San Diego, California, November 23-26, 2025.
