Employment Insurance Benefit Changes for 2020


What you need to know about the Government of Canada's revisions to Employment Insurance (EI) maximums and premium rates. These changes take effect 1 January 2020.


The federal government announced its annual revisions to Employment Insurance (EI) maximums and premium rates. These changes take effect 1 January 2020.


Why is this important? Some companies insure short-term disability (STD) in their group benefits package. Insured STD can be used to apply for a reduction in EI premiums paid through payroll and can simplify an employee’s journey if they need to claim on these benefits.


The following types of short-term disability plans are affected when EI benefit amounts change:

  • The benefit is a flat weekly benefit amount equal to the EI maximum

  • The maximum weekly benefit is equal to the EI maximum

  • STD benefits are calculated using EI maximum insurable earnings

Is your plan self-insured through a salary continuation plan? Some companies opt to simply pay employees for the duration of a short-term disability.


If your weekly benefit is less than the new EI weekly maximum benefit of $573, your plan may not qualify for the EI premium reduction program.


The following table outlines new EI premium rates across Canada with the exception of Quebec.

Contact us if you are unsure of whether your salary continuation plan or insured short term disability plan will be affected by this change.