Glossary
Employment Insurance (EI)
Employment Insurance provides temporary income to workers who lose a job, take parental leave, or cannot work for certain covered reasons. Employers deduct EI premiums from each employee's insurable earnings and add an employer premium that is larger than the employee's, then remit both to the Canada Revenue Agency with the rest of their source deductions. Because the employer share outweighs the employee's, EI is a meaningful part of the true cost of payroll. See how it fits alongside CPP in our CPP, CPP2 and EI guide.
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