EI premiums to fall in 2020 for workers and employers

As of Jan. 1, the premium for individual workers will drop four cents per $100 of insurable earnings

Minister of Finance Bill Morneau and Minister of Middle Class Prosperity and Associate Minister of Finance Mona Fortier make an announcement on lowering taxes for the middle class in the Foyer of the House of Commons on Parliament Hill in Ottawa, on Monday, Dec. 9, 2019. (THE CANADIAN PRESS/Justin Tang)

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.

READ MORE: EI benefits for sick workers cost feds $1 billion a year

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

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Robert Barron column: Winter can be hard, but it brings back good memories

I would carefully poke the handle of the shovel through the snow until it bumped into a solid object

Andrea Rondeau column: What are your time capsule must-haves?

It would also be fun to include some pop culture mementos that represent our time.

Climbers compete for Choc and Chalk

Annual competition attracts more than 100

Sarah Simpson Column: Social media mobilized to identify found film photo

Over the course of the day, the post generated a couple of hundred responses.

Northern B.C. RCMP investigating alleged sexual assault in lingerie

One person was transported by ambulance to hospital following RCMP investigation at Sedaz

UBC, Iranian-Canadian community create memorial scholarship in honour of victims

The Jan. 8 crash killed 176 people, including 57 Canadians

Disrespectful that Horgan won’t meet during northern B.C. tour: hereditary chief

Na’moks said he was frustrated Horgan didn’t meet with the chiefs

Canucks extend home win streak to 8 with 4-1 triumph over Sharks

Victory lifts Vancouver into top spot in NHL’s Pacific Division

BC Green Party leader visits northern B.C. pipeline protest site

Adam Olsen calls for better relationship between Canada, British Columbia and First Nations

‘Extensive’ work planned at Big Bar landslide ahead of salmon, steelhead migration

Fisheries Minister Bernadette Jordan visited the site of the slide from June

B.C. society calls out conservation officer after dropping off bear cub covered in ice

Ice can be seen in video matted into emaciated bear cub’s fur

Most Read