The EI Premium Reduction

Are you paying more Employment Insurance (EI) premium than necessary?

Financial Impact

If your benefits plan includes a Short-Term Disability (STD) policy that meets Service Canada's standards, your multiplier drops to 1.167.

• At the 2026 earnings maximum of $68,900, this reduction saves $261.68 per employee, per year.

• For a company with 50 employees at the maximum, that equates to $13,084 in annual savings.

• Legislation requires that 5/12 of these savings are returned to employees, leaving the employer with 7/12 (approximately $7,632 annually for a 50-person group) simply for filing the application.

How to Qualify

Most insured weekly indemnity plans already qualify. Common disqualifying reasons include a 14-day waiting period (EI requires benefits to begin by day 8) or a benefit amount below EI's 55% threshold. These shortfalls can easily be fixed at renewal, and the resulting EI savings often cover the cost of the enhancement. 

Have any Questions? Connect with a Tennet advisor to review whether your STD plan qualifies for the premium reduction.