Reduced EI/QPIP rates

The EI Premium Reduction Program allows employers to pay EI premiums at a reduced rate if their employees are covered by a short-term disability plan that meets the requirements set by Service Canada.

Prerequisites

To benefit from a reduced employer premium rate, register with the EI Premium Reduction Program.

  1. Register annually with the EI Premium Reduction Program.
  2. Submit an application.
  3. Submit a copy of the wage-loss replacement plan.
  4. Get an additional payroll deductions account (after receiving approval for the reduction).
  5. Fax the deductions account number and reduction details to Dayforce so they can be entered in Powerpay.

For more information on EI premium reductions, check with Human Resources Development Canada EI Premium Reduction Program (www.servicecanada.gc.ca/eng/cs/prp/0200_000.shtml).

Tasks

If you have recently applied with the EI Premium Reduction Program and received your rate, contact your Customer Support Team. Service fees apply to update your rate(s).

Tip: Access your “My Business Account” with CRA to view your reduced rate.

For set up, you require the following information:

  • Your approved rate
  • The effective date of the rate change
  • The taxation number the reduced EI premiums are to be remitted to. Refer to the notice received from Service Canada.
  • The taxation number the regular (1.4) EI premiums are to be remitted to.
  • The employees covered by the disability plan and eligible for the reduced rate. For example, all employees or full-time employees only.
  • When the reduced rate should be applied for new hires. For example, effective immediately or after a three month probation period.

Note: Your Customer Support Team will provide instructions on setting up the eligible employees with the reduced rate.

Customers already approved for a reduced rate receive a new rate letter in the last quarter of the year. Service Canada provides Dayforce the rates for future years based on the table below.

Tip: Access your “My Business Account” with CRA to view your reduced rate.

If your category is the same for the future year, do not send a copy of the notice to Dayforce. Your reduced rate will automatically adjust based on the current category.

If your category has changed, forward a copy of the notice to Dayforce. Service fees apply to update your rate(s).

Note: Employers must notify Service Canada within 30 days of a cancellation or a change to the short-term disability plan.

EI reduced rates

By Category 2024 2025
1 1.263 1.269
2 1.175 1.172
3 1.177 1.173
4 1.155 1.150

EI reduced rates for QPIP Contributors

By Category 2024 2025
1 1.228 1.236
2 1.116 1.114
3 1.119 1.116
4 1.092 1.087