EI Premium Reduction Program

Eligibility for the EI Premium Reduction Program requires that the employer-provided short-term disability plan meets specific criteria.

• The plan must provide at least 15 weeks of benefits for short-term disability.
• The benefits provided by the plan must match or exceed those offered under EI regulations.
• Benefits must be disbursed to employees within 8 days of illness or injury, with an elimination period not exceeding 7 consecutive days.
• Employees must have access to the plan within 3 months of their hiring date.
• The plan must cover employees on a 24-hour-a-day basis.
• The employer must provide evidence of commitment to the short-term disability plan.
• The employer must undertake to return five-twelfths of the savings from the premium reduction to employees covered by the plan.

Who is eligible?

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

Here are additional relevant details for this grant:

• The Premium Reduction Program requires employers to refund five-twelfths of the savings to the employees covered by their plan.
• Employers must maintain sufficient documentation proving the eligibility of their short-term disability plans and must be prepared to submit additional documentation upon request within 30 days.
• If granted a reduction, employers might need to adjust their financial calculations retroactively from January 1 of the calendar year in which the reduction applies.
• A written appeal can be submitted within one year if the employer disagrees with a non-entitlement decision.
• Employers must notify the program of changes to their short-term disability plan, address, payroll deductions account, ownership or organizational structure.