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Source verified July 12, 2026
EI Premium Reduction Program
Lower EI premiums for qualifying disability plans
Latest source updateLast Update: April 16, 2026Latest change: The program’s legal basis was substantially revised, with updates affecting eligibility, scope, and premium reduction rules.View change
Latest source update
Last Update: April 16, 2026
Latest change: The program’s legal basis was substantially revised, with updates affecting eligibility, scope, and premium reduction rules.
EI Premium Reduction Program updated
The program content now reflects substantial changes to the governing Employment Insurance Act provisions, including revised eligibility tests and updated premium reduction conditions. These updates also affect the program’s scope and target audience, as well as the rules used to calculate and apply reduced premium rates. The main application guidance, contact information, and portal details appear unchanged.
Funding available
Varies by project
Deadline
Open continuously
Opened September 22, 2020
Location
Canada
Who can apply
Employers that provide employees with a short-term disability plan.
See full eligibility
Overview
The EI Premium Reduction Program helps employers that offer short-term disability plans lower EI premium rates when their plans meet program requirements. It applies in Canada and supports qualifying weekly indemnity plans, cumulative paid sick leave plans, and the return of 5/12 of savings to employees.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Attract or retain talent
Eligible Funding
- Varies by project
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
- Financial cooperative
- Non-profit
- Sole proprietorship
- Public or Parapublic institution
- Non-financial cooperative
- Social economy enterprise
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Non-profit candidates
Sector of operation
- Employment and Training
Target groups
- Business owners / entrepreneurs
Revenue structures
- All structures
Scope
- Provincial
- National
Next Steps
1
Determine your project
2
Validate your eligibility
Documents Needed
- Application for Employment Insurance Premium Reduction (NAS5022)
- Evidence of the formal commitment to provide employees with a short-term disability plan
- Undertaking to return the employees' portion of the savings
- Consent to Contact Insurer (NAS5067), optional
Official resources
Program guide
Application form
Eligibility
Who is eligible?
- Employers that provide employees with a short-term disability plan.
How to apply
- Complete the Application for Employment Insurance Premium Reduction (NAS5022).
- Include evidence of your formal commitment to provide a short-term disability plan and your undertaking to return the employees' portion of the savings.
- Submit your application and supporting documents online through the Employment Insurance Premium Reduction Web Portal, by mail, or in person at a Service Canada Office.
- If you modify your existing approved plan, notify Service Canada within 30 days and apply for a continuation of the EI premium reduction by sending a completed NAS-5022 form or a letter on company letterhead with all documentation relevant to the changes.
Processing and Agreement
- Applications and supporting documents are processed in the order they are received.
- After receipt, Service Canada reviews the application and makes a decision on whether you can continue receiving an EI premium reduction, then informs you in writing.
- If the application is incomplete or more information is needed, the Commission may request additional information or documentation, and the employer must provide it within 30 days.
- If you qualify, Service Canada will contact you to verify whether an additional payroll account number is needed; if so, you must contact the CRA office serving your area and provide the additional number before the entitlement notice is issued.
Additional information
- The EIPR Web Portal is optimized for desktop or laptop computers.
- You will receive a confirmation email within 24 hours of uploading documents.
- Submit only the documents related to the business number you provide on the profile page, and use separate submissions for different business numbers.
- Each document must not exceed 50 MB, only PDF files are accepted, and encrypted or password-protected PDFs are not accepted.
Contacts
Frequently Asked Questions about the EI Premium Reduction Program Program
What is the EI Premium Reduction Program?
The EI Premium Reduction Program helps employers that offer short-term disability plans lower EI premium rates when their plans meet program requirements. It applies in Canada and supports qualifying weekly indemnity plans, cumulative paid sick leave plans, and the return of 5/12 of savings to employees.
Who is eligible for the EI Premium Reduction Program program?
To be eligible for the EI Premium Reduction Program program, you must:
The employer must provide employees with a short-term disability plan.
The plan must provide at least 15 weeks of benefits, match or exceed EI benefits, pay benefits within 8 days of illness or injury, be accessible within 3 months of hiring, and cover employees on a 24-hour-a-day basis.
The employer must provide evidence of its commitment to the plan and return five-twelfths of the savings to covered employees.
Who can I contact for more information about the EI Premium Reduction Program?
You can contact Employment and Social Development Canada (ESDC) or by phone at 1-800-367-5693.
Where is the EI Premium Reduction Program available?
The EI Premium Reduction Program program is available across Canada.
Is the EI Premium Reduction Program a grant, loan, or tax credit?
EI Premium Reduction Program is a Grant and Funding
Who are the financial supporters of the EI Premium Reduction Program?
EI Premium Reduction Program is funded by Employment and Social Development Canada (ESDC), Government of Canada