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2018 Employment Insurance (EI) Maximum Insurable Earnings

| July 18, 2018

The Canada Revenue Agency announced the maximum insurable earnings  and Employment Insurance (EI) premiums for 2018 on September 14, 2017. The rate has been increased to 1.66%  for employees, and 2.324% (1.4 times of 1.66%) for employers. Contributors who earn more than $51,700 in 2018 are not required or permitted to make additional contributions to EI.  The increase in premium rate will cost approximately a maximum of $22.03 in 2018 for an employee.

Below is the comparison:

  2018 2017 2016 2015 2014 2013
Maximum Insurable Earnings $51,700 $51,300 $50,800 $49,500 $48,600 $47,400
Basic Exemption Nil Nil Nil Nil Nil Nil

EMPLOYER CONTRIBUTION

Maximum employer contribution $1,201.51 $1,170.67 $1,337.06 $1,302.84 $1,279.15 $1,247.57
Contribution rate 2.324% 2.282% 2.632% 2.632% 2.632% 2.632%

EMPLOYEE CONTRIBUTION

Maximum employee contribution $858.22 $836.19 $955.40 $930.60 $913.68 $891.12
Contribution rate 1.66% 1.63% 1.88% 1.88% 1.88% 1.88%

Please note that this applies to each job.  For example,  during the year, if you switch employers, each employer will deduct the EI premium without considering the amount of EI premiums paid with the previous employer.  The employee will receive the refund of any over-payments when income tax and benefit return is filed with the Canada Revenue Agency.

(This posting is for personal educational purposes only.  Please consult your tax advisor for your specific situation).

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