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

New outdoor market sets up in Clearwater

Vendor fees to be donated to Clearwater and District Food Bank

Volunteering helps communities function

“You need to be at the table and help make decisions, but also do the work. Put your money where your mouth is.”

North Thompson Community foundation spreads the wealth

Funds will be used by recipients for various operations and programs

Back in Time

Historical Perspective

Clearwater food bank receives donation from tree planting group

Dynamic Reforestation out of Williams Lake donated $1,400 in light of International Hunger Day

VIDEO: B.C. dentist gets grand welcome home after two months in hospital fighting COVID-19

Michael Chow was given a surprise send off by hospital staff and ‘welcome home’ from neighbours

‘Like finding a needle in a haystack’: Ancient arrowhead discovered near Williams Lake

The artifact is believed to be from the Nesikip period between 7,500 BP to 6,000 BP

Indigenous families say their loved ones’ deaths in custody are part of pattern

Nora Martin joins other Indigenous families in calling for a significant shift in policing

Friends, family mourn Salt Spring Island woman killed in suspected murder-suicide

A GoFundMe campaign has been launched for Jennifer Quesnel’s three sons

PHOTOS: Anti-racism protesters gather in communities across B.C.

More protests are expected through the weekend

Indigenous chief alleges RCMP beat him during arrest that began over expired licence plate

Athabasca Chipewyan Chief Allan Adam calling for independent investigation

‘I’m pissed, I’m outraged’: Federal minister calls out police violence against Indigenous people

Indigenous Minister Marc Miller spoke on recent incidents, including fatal shooting of a B.C. woman

UPDATED: Pair accused of ‘horrific’ assault at Vancouver’s Oppenheimer Park arrested

Police say Jason Tapp, 30, and Nicole Edwards, 33, did not show up to meet their bail supervisor this week

Most Read