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

Saanich Police searching for high-risk missing man

The 35-year-old man was last seen at his Saanich residence on Sept.15.

West Shore RCMP searching for missing Langford man

The 59-year-old man was last seen Aug. 23 and was reported missing to police Sept. 20

WorkBC Sidney zooms up virtual job fair

Fair scheduled from 10 a.m. to 1 p.m. Thursday features four local employers

After 53 years, Saanich Jr. B team rebrands as Predators

Saanich Predators Junior B hockey team navigates COVID, culture

New Sooke library project awarded to Nanaimo-based company

No construction timeline announced by contractor

B.C. reports 96 new COVID-19 cases, one hospital outbreak

61 people in hospital as summer ends with election

Canada’s active COVID-19 cases top 10,000 as daily new cases triple over the past month

Dr. Tam repeated her warning to young people, who have made up the majority of recent cases

Greater Victoria Crime Stoppers wanted list for the week of Sept. 22

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS

Grand jury indicts police officer in Breonna Taylor death

Officer Brett Hankison was charged with three counts of wanton endangerment

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

First 8 months of fatal overdoses in B.C. have now exceeded 2019 death toll

Nine people died every two days in August, BC Coroners Service data shows

Attorney General of Canada defends Kelowna Mountie involved in rough arrest

Tyler Russell filed a lawsuit against Const. Siggy Pietrzak in June of this year

Most Read