GATINEAU, QC, Sept. 12, 2014 /CNW/ - The Canada Employment Insurance Commission (CEIC) today announced that the EI Maximum Insurable Earnings (MIE) for 2015 will increase to $49,500 from $48,600 in 2014. The MIE is indexed on an annual basis and represents the ceiling up to which EI premiums are collected and the maximum amount considered in applications for EI benefits.
The release of the EI new rates for 2015 by the CEIC follows an announcement made by the Minister of Finance on September 11, that the Government is taking action to lower the cost of EI premiums for small businesses.
CEIC also announced today that for residents of Quebec covered under the Quebec Parental Insurance Plan (QPIP), premiums will be reduced by $0.34 per $100 of insurable earnings. As such, they will pay $1.54 per $100 of insurable earnings.
There will also be reductions for the employers registered under the Premium Reduction Program (PRP). The reductions for these employers will range from $0.19 to $0.36 per $100 of insurable earnings, providing $855 million in premium relief for 2015. Registered employers will be notified individually, as individual reductions may vary.
Furthermore, for self-employed Canadians who have opted-in to the EI program, the annual earnings required to qualify for special benefits will increase to $6,645 on January 1, 2015, up from $6,515 for 2014. The level of earnings required by self-employed Canadians to be eligible for EI special benefits is indexed annually to growth in the MIE.
In addition to these changes, CEIC has made public today the EI premium rate setting reports. To ensure continued transparency and accountability in the rate setting process, CEIC is responsible for preparing reports on all elements of premium rate setting, including the MIE. The summary report is available at www.hrsdc.gc.ca/eng/jobs/ei/reports/index.shtml.
CEIC is a tripartite organization, representing the interests of workers, employers, and government. The Commissioner for Workers and the Commissioner for Employers are appointed by the Governor in Council for terms of up to five years. They are mandated to represent and reflect the views of their respective constituencies.
To learn more information about the CEIC, please visit http://www.esdc.gc.ca/eng/jobs/ei/commission/index.shtml.
- On September 11, 2014, the Minister of Finance announced the introduction of the new Small Business Job Credit which will apply to EI premiums paid by small businesses in 2015 and 2016.
- To ensure stability and predictability of EI premium rates for employers and employees the Government froze rates for 2014, 2015 and 2016 at $1.88 per $100 of insurable earnings.
- The new seven-year break-even rate-setting mechanism will take effect in 2017. As projected in Economic Action Plan 2014, the EI premium rate will fall from $1.88 in 2016 to an estimated $1.47 in 2017. All employers will continue to pay 1.4 times the EI premium rate. After the move to the seven-year break-even rate in 2017, annual adjustments to the rate will be limited to 5 cents.
SOURCE: Employment and Social Development Canada
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