Surprise…EI premium rates are increasing

I guess we could have all predicted that EI premium rates would increase at some point. When the economic downturn hit causing massive job losses it was only a matter of time. Over a 4 year span from 2011 to 2014 the Parliamentary Budget Officer projects the EI premium rates for the employee will be:

2011 – $1.88
2012 – $2.03
2013 – $2.18
2014 – $2.33

Currently, the maximum allowable EI premium rate is $1.73 per year and will increase to $2.33 (per $100 of insurable earnings) by 2014. That’s only a $0.60 increase over the next 4 years. Just to put these figures into perspective, on average, the projected annual contribution increase per worker would be $535. The employee would pay $223 and the employer would pay $312.

Since the EI premium rate will be increasing over the next 4 years, so will employees maximum insurable earnings. The Parliamentary Budget Officer projects employee maximum insurable earnings will be:

2011 – $44,650
2012 – $45,675
2013 – $46,775
2014 – $47,925

Even though the actual EI premium rates will be set for the next four 4 years by the Canada Employment Insurance Financing Board (CEIFB), employers should still be conscious of these projected figures when planning and budgeting.

If you would like to see the full report on these projected figures, please click on the following link:

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