EI Premium Reduction Program

• Application for Employment Insurance Premium Reduction (NAS5022)
• Evidence of the short-term disability plan commitment
• Collective agreement(s), if applicable
• Written undertaking to return employees’ share of savings
• Consent to Contact Insurer (NAS5067), optional

Who is eligible?

• Employers with insured employees.
• Employers offering a short-term disability plan.

Eligible geographic areas

• Canada
• Quebec, for QPIP contributors

• Applications are reviewed by Service Canada.
• Applicants are notified in writing if approved or refused.
• If approved, the notice provides the reduced rate to use for the year.
• If refused, the decision letter explains the reasons.
• Applicants may appeal a decision in writing within one year.

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.