Open
EI Premium Reduction Program
Money for employers
Last Update: March 4, 2026
Funding available
Varies by project
Timeline
- Open Date : September 22, 2020
Location
Canada
Overview
You could get a premium reduction in the short-term disability benefits you pay to your insured employees.
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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
- Financial cooperative
- Non-profit
- Public or Parapublic institution
- For-profit business
- Sole proprietorship
- Social economy enterprise
- Non-financial cooperative
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
Eligibility
Who is eligible?
Employers who have insured employees covered by a short-term disability plan may apply. Insured employees are those on whose behalf an employer remits EI premiums to the Canada Revenue Agency (CRA).Additional information
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.
Documents and links
Frequently Asked Questions about the EI Premium Reduction Program Program
Here are answers to the most common questions about the EI Premium Reduction Program. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the EI Premium Reduction Program?
You could get a premium reduction in the short-term disability benefits you pay to your insured 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 offering at least 15 weeks of benefits.
The plan must pay benefits within 8 days of a disability, with an elimination period not exceeding 7 consecutive days.
The disability plan must be available to employees within 3 months of hiring and cover them 24 hours a day.
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), Government of Canada