Canada’s Employment Insurance Changes for 2025
Canadians eligible for Employment Insurance (EI) will receive higher benefits while paying lower premiums in 2025. These changes aim to provide more financial relief during times of unemployment, illness, or parental leave.
Key Changes in EI for 2025
Starting January 1, 2025, the maximum insurable earnings (MIE) increased from $63,200 to $65,700. This means higher weekly EI benefits for those who qualify.
- Maximum EI benefit increased from $668 to $695 per week.
- Extended parental benefits increased from $401 to $417 per week.
- Lower EI premiums: Employees now pay $1.64 per $100 of insurable earnings (down from $1.66). Employers pay $2.30 per $100 (down from $2.32).
- Quebec workers pay the lowest rate at $1.31 per $100 due to the Quebec Parental Insurance Plan.
What These Changes Mean for Workers
Workers earning up to $65,700 will see higher EI payments while paying slightly less in deductions.
For example:
- An employee earning $75,000 annually will only pay premiums on the first $65,700.
- Their maximum annual EI premium is now $1,077.48, compared to $1,049.12 in 2024.
- Although they pay $28.36 more annually, they receive higher weekly benefits when claiming EI.
How Much Extra EI Can You Receive?
Workers who qualify for EI benefits can receive payments between 14 and 45 weeks, depending on the unemployment rate in their area and their work history.
- An additional $27 per week means $378 more for 14 weeks and $1,215 for 45 weeks.
- The maximum EI payout for 45 weeks is now $31,275.
How to Apply for EI Benefits
If you become unemployed, apply for EI benefits immediately.
- Submit an online application via My Service Canada Account (MSCA).
- Ensure your employer submits a Record of Employment (ROE).
- Respond promptly to any Service Canada inquiries.
- Submit bi-weekly reports to continue receiving benefits.
What If You Work While Receiving EI?
If you find part-time work, you can still receive partial EI benefits.
- You keep 50 cents of EI for every $1 earned, up to 90% of your weekly insurable earnings.
- Earnings above the 90% threshold reduce EI benefits dollar-for-dollar.
Stay Informed and Plan Ahead
These EI changes for 2025 provide higher financial support while easing premium costs for workers. For more details, visit My Service Canada Account or contact Service Canada.
More…
