Reducing your Employment Insurance Premium Rate

What is the Employment Insurance Premium Reduction Program?

The Canadian government grants reduced Employment Insurance (EI) premium rates to employers if their employees are covered by a qualified short-term disability plan.

What are the requirements that the short-term disability plan must meet?

  • provide at least 15 weeks of benefits for short-term disability;
  • match or exceed the level of benefits provided under EI;
  • pay benefit to employees within 14 days of illness or injury;
  • be accessible to employees within three months of hiring;
  • cover employees on a 24-hour-a-day basis.

Why does Service Canada offer the Employment Insurance premium reduction to employers?

When employers offer a short-term disability plan that provides coverage which is similar to EI benefits, the employee may not have to claim EI sickness benefits or they may claim them for a shorter period of time.

How much money can I save?

Employers who qualify for this program can save up to $164.72 per employee each year.

How do I apply for an EI premium reduction?

You can apply for an EI premium reduction by completing an online form or by sending a written request on company letterhead.

What do I need to do once I have qualified for an EI premium reduction?

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