The federal government intends to reduce the employee base CPP rate from 4.95% to 4.75% on January 1, 2027. The first additional CPP rate remains 1%, while the 2027 EI employee rate rises to $1.64 per $100 of insurable earnings.
Two things can be true at once: a CPP rate reduction can lower deductions on the same pensionable earnings, while a higher earnings ceiling can extend deductions further into the year. That is why the exact annual difference cannot be calculated from the rate alone until all CPP ceilings are published.
2027 EI employee premium rate outside Quebec.
Confirmed EI numbers for 2027
| Federal EI | 2026 | 2027 |
|---|---|---|
| Employee rate | 1.63% | 1.64% |
| Maximum insurable earnings | $68,900 | $70,800 |
| Maximum employee premium | $1,123.07 | $1,161.12 |
At or above the annual maximum, the 2027 employee premium is $38.05 higher than the 2026 maximum. Quebec uses a lower EI rate because the province operates the Quebec Parental Insurance Plan.
The planned CPP rate change
The CRA’s payroll formula guidance says the government announced an intended reduction in the base CPP rate from 4.95% to 4.75% for employees and employers, effective January 1, 2027. The 1% first additional rate and 4% CPP2 rate are not affected. For earnings below the main CPP ceiling, that would move the combined employee rate from 5.95% to 5.75%.
As of this update, the official 2027 CPP earnings ceilings and maximum employee contributions were not shown in the CRA annual maximum table. Do not treat an estimate using the 2026 ceiling as the final 2027 maximum.
Why January deductions may look larger
CPP and EI restart with the first pensionable and insurable earnings of a new calendar year. Higher earners who max out later in the year often see deductions disappear after reaching the annual limit, then return in January. That restart can shrink the first paycheque even when a contribution rate falls.
What to do before January
- Compare gross pay, not bank deposits alone. Taxes, benefits and workplace deductions can also change.
- Use the EI calculator. It compares the confirmed 2026 and 2027 employee premiums.
- Wait for the official CPP ceilings. Revisit the calculation when the CRA publishes the final annual limits.
Official sources
- CRA: EI premium rates and maximums
- Employment and Social Development Canada: 2027 EI rate
- CRA: payroll formulas and announced 2027 CPP rate change
- CRA: CPP rates and annual maximums
Run the confirmed comparison
Compare your 2026 and 2027 EI employee premiums.
This page was reviewed and approved for publication by Matelacom Inc. Confirmed figures link to primary sources; analysis and estimates are labelled. Corrections: info@matelacom.ca.
This article is for general educational purposes only and is not personalized financial, tax, legal, employment or real-estate advice. Figures can change after publication; confirm decisions with the linked official source and a qualified professional where appropriate.