EI commission posts 2014 earnings limit

Yesterday, the government announced it plans to freeze the Employment Insurance premium rate at the 2013 level of $1.88 per $100 of insurable earnings for the next three years.

Further, the EI Commission says the maximum insurable earnings (MIE) allowed for those collecting EI throughout 2014 will increase to $48,600, up from $47,400 in 2013.

Read: Canadian employment woes persist, says study

In accordance with the EI Act, 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.

Quebec residents will pay even lower premiums over the three-year period; for those covered under the Quebec Parental Insurance Plan (QPIP), the premium reduction will be $0.35 per $100 of insurable earnings. As such, they will pay $1.53 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 $0.22-to-$0.37 per $100 of insurable earnings, providing $852 million in premium relief. Registered employers will be notified individually, as individual premium reductions may vary.

For self-employed Canadians who have opted-in to the EI program, the annual earnings required to qualify for special benefits will increase to $6,515 on January 1, 2014, up from $6,342 for 2013. The level of earnings required by self-employed Canadians to be eligible for EI special benefits is indexed annually to growth in the MIE.

Read: Help self-employed clients

Though Canada has seen steady job creation since the end of the global recession, challenges remain, say officials. The rate freeze for EI premiums will leave $660 million more in the pockets of job creators and Canadian workers in 2014 alone, which will hopefully encourage growth and innovation.

For more on the job market, read:

Canadians to see salaries increase by 2.6%

A look at the hidden job market

How to boost employee performance

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.