Employment Insurance Premium Rate Actuarial Report: 2023 Highlights

Report type
Employment Insurance
Published date

Message from the Actuary

The 7-year forecast break-even rate decreases from 1.81% in 2022 to 1.74% in 2023.

The maximum premium rate the Commission may set in 2023 is 1.63%. This rate reflects the limit to the annual variation in the premium rate of 0.05% established in the EI Act. The EI premium rate in 2022 is 1.58%.

Overview of financing

7-year forecast break-even rate

Single rate required over the next 7 years to:

  • Pay for the expected expenditures, and
  • Eliminate the projected deficit/surplus that has accumulated in the EI Operating Account.

Premium rate

Actual premium rate paid by employees for a given year – employers usually pay 1.4 times the premium rate.

Reductions

Premium reductions are available to provinces and to employers who have a plan that reduces benefits payable by the EI program.

Quick facts (2023)

  • $61,500 Maximum Insurable Earnings
  • 1.74% 7-Year Forecast Break-Even Rate
  • 0.36% Reduction for Provincial Plans (Québec)
  • $1,345 M Estimated Reduction for Qualified Wage-Loss Plans
  • $(25.2) B Projected End of Year EI Operating Account

Recent program changes

Temporary – Increasing benefits and facilitating access to EI in response to the COVID-19 pandemic.

Permanent – Increasing the number of sickness benefits from 15 to 26 weeks.

Rates and multipliers

Key rates
  Canada
(excl. Québec)		 Québec
7-year forecast break-even rate 1.74% 1.38%
2023 maximum premium rate 1.63% 1.27%
Employer multiplier 1.4 1.4
Qualified wage-loss plans: premium reduction / multiplier
  Canada
(excl. Québec)		 Québec
Category 1 0.25% / 1.249 0.25% / 1.206
Category 2 0.39% / 1.160 0.39% / 1.092
Category 3 0.39% / 1.163 0.39% / 1.096
Category 4 0.42% / 1.140 0.42% / 1.066

Projection of the EI operating account using the 7-year forecast break-even rate

Bar graph showing premium revenue and expenditures and line graph showing cumulative annual surplus (deficit) between 2022 and 2029

Projection of the EI operating account ($ billion) - Table
Projection of the EI operating account ($ billion)
Year Premium Revenue Expenditures Cumulative Annual Surplus
(Deficit)
2022 26.1 -27.5 -27.3
2023 29.9 -25.8 -23.1
2024 31.2 -27.7 -19.5
2025 32.2 -28.8 -15.9
2026 33.3 -29.5 -12
2027 34.3 -30.4 -8.3
2028 35.5 -31.1 -4.2
2029 36.7 -32.2 0

Reconciliation of the 7-year forecast break-even rate

  • 1.81002022 Actuarial Report
  • 0.0186EI Operating Account as at 31 December 2021
  • -0.0261 Change in Unemployment Rate Assumptions
  • -0.0070 Changes in Earnings Base
  • 0.0048 Changes in Expenditures
  • -0.0504 Updated Cost for Program Changes
  • -0.0075 Change in 7-year period
  • 1.74002023 Actuarial Report

Part I expenditures for 2023 - $22 billion

Pie chart showing the Part I regular and special expenditures for 2023

Part I expenditures for 2023 - Table
Part I expenditures for 2023
  (%)
Regular 60.2
Maternity and Parental 23.7
Sickness 13.2
Caregiving 0.8
Fishing 1.8
Work-Sharing 0.1
Training 0.1
Date modified: