In our previous article, we explained what Employment Insurance (EI) is, why it appears as a deduction on your pay stub, and why temporary foreign workers may also be subject to this contribution.
But how is the amount shown as EI on your paycheck determined? You do not need to know a complicated formula. The important thing is to understand that the contribution is calculated by applying a percentage to your insurable earnings, up to the established annual limit.
What percentage is applied?
In 2026, in Quebec, the Employment Insurance contribution rate for an employee is 1.30% of their insurable earnings. There is also a maximum annual amount of insurable earnings of $68,900. This means that EI contributions are calculated only up to this limit. If your earnings exceed $68,900 during the year, the portion above that amount does not generate additional EI contributions.
A simple example
Let’s imagine that during one pay period, you receive $1,000 in insurable earnings.
- The simplified calculation would be: $1,000 × 1.30% = $13
In this example, approximately $13 would correspond to the employee’s Employment Insurance contribution for that pay period. The exact amount shown on your pay stub may vary depending on your situation and how the payroll calculation is performed.
Why isn’t the same amount deducted every time?
The EI contribution may vary from one pay period to another. For example, if you work more hours during one pay period and earn more money, the contribution may be higher. If you work fewer hours during another period and earn less, the amount deducted may be lower. It is therefore normal for the amount identified as EI to be different from one pay stub to another.
- In simple terms: Insurable earnings → the EI rate is applied → the contribution is calculated
The contribution is deducted progressively from your different paychecks throughout the year.
Is there a limit to how much EI can be deducted from my paycheck?
Yes. There is an annual maximum EI contribution. In 2026, in Quebec, the employee contribution is 1.30% of insurable earnings, up to a maximum of $68,900 in insurable earnings. The maximum amount a worker can pay in EI contributions during the year is $895.70.
Once you have reached this annual maximum, your employer must stop deducting EI contributions for the rest of the year. It is important to understand that $895.70 is a maximum, not an amount that every worker must pay. If your insurable earnings during the year are less than $68,900, your total EI contributions will be less than $895.70.
What if I only work part of the year?
If you are a TFW and work only part of the year, for example 8 months, you may still be subject to Employment Insurance contributions. The fact that your contract is temporary or that you do not work all 12 months of the year does not automatically mean that you are exempt. If you meet the applicable conditions, your employer will make the required deductions during the period you work.
For example, if you work for 8 months and your insurable earnings during that period are less than $68,900, your total EI contributions will be less than the annual maximum of $895.70. Therefore, you do not have to work all 12 months of the year to contribute to EI, but that does not mean you will automatically reach the annual maximum.
What if I am a temporary agricultural worker?
If you are a temporary foreign worker who works seasonally in the agricultural sector, you may also be subject to Employment Insurance contributions. For example, if you work during an agricultural season for several months and receive insurable earnings, your employer may make an EI deduction from each paycheck.
Working only during one season does not automatically mean that you are exempt from contributing to EI. If you do not reach the annual maximum of insurable earnings during the season, your total contributions will be less than the annual maximum of $895.70.
Do I have to calculate this myself every time I get paid?
No. Your employer is responsible for calculating and withholding the applicable Employment Insurance contribution from your wages. However, understanding the basic logic behind the calculation can help you better understand your pay stub and check whether the amount deducted is consistent with your earnings.
What should you remember?
If you see a deduction identified as EI on your pay stub, remember these four things:
- EI stands for Employment Insurance.
- In 2026, the employee contribution rate in Quebec is 1.30%.
- The rate applies to insurable earnings, up to an annual maximum of $68,900. The maximum employee contribution is $895.70.
- TFWs, including temporary agricultural workers, may be subject to this contribution if they meet the applicable conditions.
In our next article, we will talk about another important part of your pay stub: the taxes deducted from your wages and why you may see different tax deductions in Quebec.
Understanding how each deduction is calculated can help you better understand your wages and review your pay stub with greater confidence. At InfoTET d’Immigrant Québec, we continue to share useful information to help temporary foreign workers (TFWs) better understand their rights, obligations, and the different aspects of their work experience in Quebec.
