Employment Insurance Premium Rate 2023

Summary#

The Canada Employment Insurance Commission set the Employment Insurance premium rate for 2023 at $1.63 per $100 of insurable earnings. For residents of Quebec covered by the Quebec Parental Insurance Plan, the Commission applied a reduction of $0.36, making the Quebec rate $1.27 per $100. This notice was published in the Canada Gazette on October 8, 2022.

What it does#

• Sets the national Employment Insurance premium rate for 2023 at $1.63 per $100 of insurable earnings.
• Applies an Employment Insurance premium reduction of $0.36 for residents of Quebec covered under the Quebec Parental Insurance Plan, so the Quebec rate is $1.27 per $100 of insurable earnings.
• Announces these figures under the authority of the Employment Insurance Act and the Employment Insurance Regulations.

Who's affected#

• People who earn wages or salaries that count as insurable earnings and pay Employment Insurance premiums.
• Employers who are responsible for collecting and remitting those premiums on payroll.
• Residents of Quebec who are covered by the Quebec Parental Insurance Plan (they get the reduced rate).
• The notice does not spell out any other exemptions or changes to who must pay; it simply sets the rates.

Why it matters#

• The rate determines how much is taken from paycheques (and added to employer payroll costs) for Employment Insurance in 2023.
• A lower rate for Quebec residents covered by the provincial parental plan means slightly smaller premium deductions for those workers.
• Anyone who runs payroll or watches their take-home pay will want to use these figures when calculating 2023 deductions.