Section 12 – Social Programs and Benefits
Employment Insurance Contributions and Quebec’s Parental Insurance Plan
Employment Insurance
EI contributions for employers and employees in provinces other than Quebec are as follows:
| Contributions – EI (Residents outside Quebec) |
2020 | |
|---|---|---|
| Employer | Employee and registered self-employed worker | |
| Contributions: | ||
|
2.212% | 1.580% |
|
$1,198.90 | $856.36 |
| Maximum pensionable earnings | $54,200 | |
Self-Employed Workers
Self-employed workers who want to qualify for parental, maternity, adoption, sickness and compassion benefits may register and make EI contributions. Registered self-employed workers must calculate and pay EI contributions in their income tax return for the taxation years in question. They must wait 12 months after registering before applying for a benefit.
Quebec Parental Insurance Plan
The QPIP is payable in addition to EI. Workers covered must contribute to both plans. As a result, adjustments were made to the EI plan in order to integrate both programs.
The QPIP provides additional benefits to EI, including:
- Elimination of the one-week waiting period;
- Increase in maternity, parental and adoption benefits.
Employee contributions are subject to employer deductions at source. Self-employed workers’ contributions must be taken into account in calculating their income tax instalments. With a few exceptions, the insurable earnings for both plans are the same1.
The following table compares the main conditions of the QPIP and the federal EI plan and illustrates the principles governing both plans, including persons subject thereto, and contribution rates.
| 2020 | QPIP | EI |
| Applicable to | ||
|
Yes | Yes |
|
Yes | No |
|
Yes | Yes |
|
Yes | On a voluntary basis |
| Contribution (employees working in Quebec) | ||
| Maximum insurable earnings | $78,500 | $54,200 |
| Contribution | ||
|
0.692% |
1.680% |
|
0.494% |
1.200% |
|
0.878% |
1.200%2 |
1 For more information, consult the summary chart published by Service Canada: https://www.canada.ca/en/employment-social-development/programs/ei/ei-list/reports/roe-guide/information.html.
2 For registered self-employed workers.
This document is up to date as of September 3, 2020 and reflects the status of legislation, including proposed amendments at this date.
