How much funding can be received?

There is no informations about how much funding can be received.

What is the deadline to apply?

The deadline to apply is not specified.

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

What are EI Premium Reduction Program's eligibility criterias?

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.

EI Premium Reduction Program

Last Update: January 24, 2025

Canada

Money for employers

EI Premium Reduction Program at a glance

Eligible Funding

No Condition

Timeline

Open Date : September 22, 2020

Financing Type

Grant and Funding

Eligible Industries

All industries

Grant Providers

Employment and Social Development Canada (ESDC)
Government of Canada

Status

Open

Overview of the EI Premium Reduction Program program

You could get a premium reduction in the short-term disability benefits you pay to your insured employees.

Financing terms and conditions

The EI Premium Reduction Program offers employers lower EI premium rates by providing short-term disability plans that qualify under specific conditions. This reduction aids in cost efficiency for employers while ensuring employee benefits.

Employers can obtain reduced EI premium rates when employees are covered by a qualifying short-term disability plan.
Rates of premium reduction are categorized based on the type of short-term disability plan provided and the duration it meets the program’s requirements.
The reduction rate is expressed as a percentage of the employee's insurable earnings, impacting the employer's premium calculations.
Employers must continue providing five-twelfths of the savings from the reduction to the employees covered by the plan.
Reduced rates require the employer to wait for an entitlement decision from Service Canada before applying the new rate.

Eligible projects & activities

Examples of admissible projects:

$ 20,000

Implementing a short-term disability plan for a new software development startup

$ 20,000

Establishing a comprehensive short-term disability plan for employees at a non-profit organization

$ 20,500

Implementing a short-term disability plan at a social economy enterprise

$ 25,000

Introducing a short-term disability program at a financial cooperative

$ 25,000

Implementing a new short-term disability plan for employees at a local manufacturing company

$ 25,000

Introducing a new short-term disability plan for employees at a legal firm

Eligibility criteria of the EI Premium Reduction Program 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?

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).

Eligibility criteria of the EI Premium Reduction Program program

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 to the EI Premium Reduction Program program

Verify Eligibility

Ensure your short-term disability plan meets all the basic requirements laid out in the program guide.

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.

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.

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.

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.

Address Any Issues

If not approved, carefully review the reasons provided and consider resubmitting with modifications, or appeal if necessary.

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.