TORONTO, Sept. 14, 2015 /CNW/ - Restaurants Canada is urging Ottawa to act on today's Actuary report and lower Employment Insurance premiums in 2016, rather than wait until 2017. Lower premiums would be much-needed good news for employers and employees who pay into the EI program.
A summary of the Actuarial Report on the Employment Insurance Premium Rate released today indicates that EI premiums should drop to $1.56 per $100 of insurable earnings in 2016 from the current rate of $1.88.
At $1.56, the program is forecast to be at a break-even rate without a deficit in the Operating Account, as the legislation requires. However, the EI Act was amended this year to allow the premium rate to remain artificially high until 2017 when a significant premium drop is expected.
"This is an excellent opportunity for Ottawa to lower the cost of creating jobs in Canada. Reducing EI premiums in 2016 would be great news for employees and employers alike," says Joyce Reynolds, executive vice president of government affairs with Restaurants Canada. "The savings would add up to $68 million for restaurant operators alone, and would certainly help with job creation in these turbulent times."
Restaurants Canada is a growing community of 30,000 hospitality businesses, including restaurants, bars, caterers, institutions and suppliers. We connect our members from coast to coast, through services, research and advocacy for a strong and vibrant restaurant industry. Canada's restaurant industry directly employs 1.2 million Canadians, is the number one source of first jobs, and serves 18 million customers every day.
SOURCE Restaurants Canada
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