Open
EI Premium Reduction Program
Lower EI premiums for qualifying disability plans
Last Update: June 10, 2026
Funding available
Varies by project
Timeline
- Open Date : September 22, 2020
Location
Canada
Overview
Employers may qualify for a lower EI premium rate when they offer a short-term disability plan that meets program requirements. The program supports qualifying plans and the application process for a premium reduction.
/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
Timeline
- Open Date : September 22, 2020
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 a short-term disability plan
- Undertaking to return employees' portion of the savings
- Collective agreement(s), if applicable
- Consent to Contact Insurer (NAS5067), optional
Official resources
Eligibility
Who is eligible?
- Employers with insured employees.
- Employers offering a short-term disability plan.
Eligible geographic areas
- Canada
- Quebec, for QPIP contributors
Selection criteria
The evaluation and selection criteria for the EI Premium Reduction Program are based on the short-term disability plan provided by the employer and whether it meets specific requirements. Employers must ensure their plans meet the minimum criteria to qualify for a premium reduction.
- Provide at least 15 weeks of benefits for short-term disability
- Match or exceed the level of benefits provided under EI
- Pay benefit to employees within 8 days of illness or injury (the elimination period cannot exceed 7 consecutive days)
- Be accessible to employees within 3 months of hiring
- Cover employees on a 24-hour-a-day basis
How to apply
1
Verify Eligibility
Ensure your short-term disability plan meets all the basic requirements laid out in the program guide.
2
Prepare Required Documentation
- Prepare a copy of the short-term disability plan(s) you provide to employees.
- Gather any applicable collective agreement(s) related to employees covered by the plan.
- If available, prepare a written mutual agreement regarding the return of the employees' portion of the reduction.
3
Complete Application Form
- Access the application form for Employment Insurance Premium Reduction (NAS5022).
- Fill out the form with accurate details about your organization and the short-term disability plan.
4
Submit Application
- Submit the completed application form and all required documents to the Service Canada office handling EI Premium Reduction.
- Ensure any missing documentation is provided within 30 days if requested by Service Canada.
5
Await Decision
- Await written notification from Service Canada regarding the outcome of your application.
- If approved, receive the reduced EI premium rate and recalculate your payroll as necessary.
6
Address Any Issues
If not approved, carefully review the reasons provided and consider resubmitting with modifications, or appeal if necessary.
Processing and Agreement
- Service Canada reviews the application and supporting documents.
- If more information is needed, additional documents may be requested.
- Applicants receive a written entitlement or non-entitlement decision.
- If approved, the notice includes the reduced rate to use for the year.
- Applicants may appeal a decision in writing within one year.
Additional information
- Support can be submitted online, by mail, or in person.
- If documents are missing, Service Canada may request them during assessment.
- The program provides a written decision on entitlement.
- An appeal can be filed in writing within one year of the decision notice.
Frequently Asked Questions about the EI Premium Reduction Program Program
What is the EI Premium Reduction Program?
Employers may qualify for a lower EI premium rate when they offer a short-term disability plan that meets program requirements. The program supports qualifying plans and the application process for a premium reduction.
Who is eligible for the EI Premium Reduction Program program?
To be eligible for the EI Premium Reduction Program program, you must:
Employer offers a short-term disability plan.
Plan meets program requirements.
Employer returns part of the savings.
Who can I contact for more information about the EI Premium Reduction Program?
You can contact Employment and Social Development Canada (ESDC).
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)