What is the Employment Insurance Premium Reduction Program?

The Canadian government grants reduced Employment Insurance (EI) premium rates to employers if their employees are covered by a qualified short-term disability plan.

What are the requirements that the short-term disability plan must meet?

  • provide at least 15 weeks of benefits for short-term disability;
  • match or exceed the level of benefits provided under EI;
  • pay benefit to employees within 14 days of illness or injury;
  • be accessible to employees within three months of hiring;
  • cover employees on a 24-hour-a-day basis.


Why does Service Canada offer the Employment Insurance premium reduction to employers?

When employers offer a short-term disability plan that provides coverage which is similar to EI benefits, the employee may not have to claim EI sickness benefits or they may claim them for a shorter period of time.

How much money can I save?

Employers who qualify for this program can save up to $164.72 per employee each year.

How do I apply for an EI premium reduction?

You can apply for an EI premium reduction by completing an online form or by sending a written request on company letterhead.


What do I need to do once I have qualified for an EI premium reduction?