Program
Federal
Active
EI Premium Reduction Program
Employment and Social Development Canada / Canada Revenue Agency
Maximum Funding
Up to $261
Ongoing; employers may apply at any time and, once granted, entitlement conti...
Difficulty
Hard
Payment
Tax Credit Offset
Trend
Stable
First-Timers
—
Co-Funding
Varies
EI Premium Reduction Program provides up to $261. Reduces EI premium rates for employers who provide insured employees with a qualifying short-term disability or wage-loss replacement plan. Applications are accepted on an ongoing basis.
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Eligibility & Details
What this program funds and who can apply
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Program Description
Reduces EI premium rates for employers who provide insured employees with a qualifying short-term disability or wage-loss replacement plan.
Eligibility Requirements
- Employer, including for-profits, with insured employees covered by a short-term disability plan.
- Plan must provide at least 15 weeks of benefits.
- Plan must match or exceed the level of benefits provided under EI.
- Benefits must be paid within 8 days of disability.
- Eligibility period for benefits must be 3 months or less.
- Plan must cover employees on a 24-hour-a-day basis.
- Employer must return five-twelfths of the savings to employees covered by the plan.
Provinces
Industries
Business Stage
Quick Assessment
Difficulty
Hard
Competition
Low
First-Timer
Not rated
Funding Details
- Amount
- Up to $261Not a fixed dollar grant. Employers with a qualifying short-term disability plan pay EI premiums at a rate lower than the standard 1.4 multiple. For 2026, the best reduced rate for Category 2 or 3 plans is 1.167, yielding a maximum savings example of $261.68 per employee per year.
- Type
- Program
- Level
- Federal
- Deadline
- Ongoing; employers may apply at any time and, once granted, entitlement continues until the approved plan changes or is cancelled.
Program Scorecard
Competition, effort, and approval at a glance
Competition
Low
Deadline
Ongoing
Approval
Varies
Accessibility
3/5
Moderate — standard application process
Competition
1/5
Low competition — good odds of approval
Difficulty
4/5
Complex — detailed documentation needed
Processing Time
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How to Win
Insider tips, common pitfalls, and what successful applicants look like
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Insider TipCategory 2 enhanced cumulative paid sick leave plans or Category 3 weekly indemnity plans with 15 or more weeks qualify for the 2026 best reduced rate of 1.167.
Rejection Pitfalls 6
- Plan does not provide at least 15 weeks of benefits
+5 more pitfalls
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Success Profile
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Evaluation Criteria
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All 6 pitfalls, the checklist and the reviewer notes are in the Playbook below. See what it includes ↓
What's in this Playbook
Everything you need to win EI Premium Reduction Program
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 6 rejection pitfalls reviewers flag — so you catch them first
- 5-document checklist with what each reviewer is actually checking
- Your Application Game Plan — the print-ready PDF the preview below describes
- 5-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- Success profile + evaluation criteria — exactly what reviewers score on
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Application Playbook
Step-by-step process, required documents, and expenses
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5 steps
5 docs
Application Steps
1
Complete the application form Fill out the Application for Employment Insurance Premium Reduction (NAS5022).
Required Documents 5
✓ Completed Application for Employment Insurance Premium Reduction (NAS5022) form
✓ Copy of the short-term disability plan(s) provided to employees
Intake Periods
Deadline Notes
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The full guide for this program also covers:
- 4 more application steps
- 3 more required documents
- Intake periods
- Deadline notes
Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
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Stacking partner data not yet available.
Combined Funding Potential
See your total funding potential
Clawback Risk
Unknown Risk
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How EI Premium Reduction Program Compares
Side-by-side with similar programs
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|---|---|---|---|---|
| EI Premium Reduction Program | Not a fixed dollar grant.... | Hard | Tax Credit Offset | Ongoing; employers may... |
| Digital Technology Supercluster | Up to $5 million | Hard | Reimbursement | Open — Call for... |
| Canadian Northern Economic Developmen... | Varies | Moderate | Mixed (Advance + Reimb.) | Main EOI for 2026-27... |
| Colleges and Institutes Canada (CICan... | Varies | Moderate | Advance Payment | Ongoing |
| Genome Canada | Up to $10 million | Hard | Reimbursement | Ongoing |
Related Programs
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Frequently Asked Questions
Quick answers to the questions founders most often ask about EI Premium Reduction Program
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Who can apply for an EI premium reduction?
Employers with insured employees covered by a qualifying short-term disability plan may apply.
How much will my reduction be worth?
For 2026, the best available rate is 1.167 (versus the standard 1.4), capping savings at $261.68 per insured employee per year, based on the $68,900 maximum insurable earnings.
Can I get a retroactive reduction?
No. The effective date is based on your application date, though you can ask for an antedated application if you had good cause for applying later.
Do I have to reapply every year?
No. Once granted, your entitlement continues until you change or cancel your approved plan.
What do I have to give back to employees?
You must return at least five-twelfths of your total EI premium savings to the employees covered by the plan.
What if some of my required documents are missing when I apply?
Submit what you can; Service Canada will request any missing documents, and you must supply them within 30 days of that request.
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Full Playbook: EI Premium Reduction Program
5 steps · 5 docs · reviewer insights