Canadian workers and employers will enjoy a slight decrease in employment insurance premiums in the new year, resulting in about $1.1 billion in total reductions in 2020.
Starting on Jan. 1, the premium for individual workers will be $1.58 per $100 of insurable earnings while their employers will pay $2.21 per $100 of the workers’ insurable earnings.
Employment and Social Development Canada, which administers the program, says that’s a decrease of four cents per $100 for workers and six cents per $100 for employers compared with the 2019 rates.
The annual EI adjustments also include an $1,100 increase in the maximum insurable earnings, which will be $54,200 in 2020.
As a result of adjustments, the maximum annual EI contribution for a worker will fall by $3.86 to $856.36 and employers’ maximum contribution will fall $5.41 to $1,198.90 per employee.
For self-employed Canadians who have opted into the EI program, the annual earnings required in 2019 will increase to $7,279 for claims filed in 2020.
In a fiscal update issued Dec. 16, the finance department signalled that EI premiums will decrease further in 2021 to $1.55 per $100 of insurable earnings, causing a proportionate decline in what employers pay, which is 1.4 times the individual rate.
The Canadian Press