Employment Insurance (EI)

Employment Insurance is the federal program that pays temporary income to eligible workers who lose work or are off sick, on parental leave or caregiving.

Also called: EI, unemployment insurance, pogey

What employment Insurance (EI) means

Employment Insurance (EI) is a federal program, run by Service Canada, that gives temporary income support to eligible workers. It pays regular benefits to people who lose their job through no fault of their own, and special benefits to people who are off work because of illness, pregnancy, caring for a new child, or caring for a family member who is critically ill or near the end of life.

For an employer, EI has three parts. You deduct EI premiums from employees' insurable earnings and pay an employer share on top. You issue a Record of Employment (ROE) when an employee has an interruption of earnings. And you answer Service Canada's questions about a claim when asked.

You do not decide who gets EI or how much. Service Canada does. But the accuracy and timing of your ROE can make a real difference to how quickly a former or absent employee gets paid.

How it works

Premiums: each pay, you deduct the employee's EI premium from insurable earnings, add the employer share, and remit both with income tax and CPP contributions through your payroll account. The employer share is 1.4 times the employee premium. For 2026, the employee rate is $1.63 for every $100 of insurable earnings and the employer rate is $2.28, on insurable earnings up to a maximum of $68,900 for the year. In Quebec the 2026 rate is lower, $1.30 per $100 for the employee and $1.82 for the employer, because Quebec runs its own parental insurance plan. The rates and the maximum change each year, so use the current figures from the Canada Revenue Agency.

Eligibility is Service Canada's decision. For regular benefits, a worker needs enough hours of insurable employment in the qualifying period (generally the 52 weeks before the claim), and the number depends on the unemployment rate where they live: between 420 and 700 hours. They also need a valid reason for the job ending.

The ROE: issue one when an employee has, or is expected to have, 7 consecutive days with no work and no insurable earnings, or when employment ends. For an electronic ROE on a weekly, biweekly or semi-monthly pay cycle, the deadline is 5 calendar days after the end of the pay period in which the interruption happens. For a paper ROE, it is 5 calendar days after the first day of the interruption or the day you learn of it. Keep your copy for 6 years.

Reasons and details matter. The ROE shows why the employee stopped working, their insurable hours and earnings, and any amounts paid at the end, such as vacation pay. For a layoff because of a shortage of work, including the end of a contract or season, the reason code is A. A wrong reason code or missing amounts can delay the claim or lead to questions from Service Canada.

Answer requests promptly and honestly. Service Canada may contact you to check why someone left. Give the facts; it is not your role to argue for or against a claim.

Common mistakes: not issuing an ROE because the employee "will be back soon", using the wrong reason code, and forgetting to issue one when someone quits.

Is it the same in every province?

EI is a federal program and the same rules apply across Canada, including the Record of Employment rules. In Quebec, maternity, paternity, parental and adoption benefits come from the Québec Parental Insurance Plan instead of EI, so Quebec employers deduct and remit QPIP premiums to Revenu Québec and pay a lower EI premium.

Example: A seasonal layoff at a Cavendish gift shop

Leah runs a gift shop in Cavendish, Prince Edward Island, with 8 seasonal staff. The shop closes for the winter after Thanksgiving, and she pays staff biweekly using electronic ROEs.

The last pay period of the season ends on Saturday 17 October 2026, and all 8 staff stop working that week. Leah's deadline is 5 calendar days after that pay period ends, so 22 October. She issues all 8 ROEs on 19 October with the right reason code, includes the vacation pay she paid out, and keeps copies on file.

Hollis handles the exit checklist

When someone leaves, Hollis, part of the Staffkin HR Suite, gives you the exit checklist, including final pay timing, vacation pay owed and the Record of Employment deadline.

Try Hollis live

Free tools and guides for this

Questions about employment Insurance (EI)

Do employers pay EI?

Yes. Employers deduct the employee's EI premium from pay and pay an employer share on top. Both are remitted to the Canada Revenue Agency through payroll.

When do I have to issue a Record of Employment?

When an employee has, or will have, 7 consecutive days with no work and no insurable earnings, or when employment ends. Electronic ROEs on weekly, biweekly or semi-monthly pay are due 5 calendar days after the end of that pay period.

How long do I keep ROE copies?

Keep your copy of each Record of Employment for 6 years.

Official sources

General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.

Checked against official sources on 5 November 2026.