Equation for Account Balance Rate

The account balance rate is calculated by dividing the EI Operated Account surplus as of 31 December 2015 by the earnings base of residents of all provinces.

The earnings base of residents of all provinces is developed as follows: 1.4 times the TIE, plus the TIE times (1 minus the adjustment to reflect employee premium refunds which is expressed as a percentage of TIE), plus the total self-employed earnings for individuals who opted into the EI program.

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