Minister Flaherty announced today (September 9, 2013) that it will freeze the Employment Insurance (EI) premium rate for employees at 2013 levels.
On the heels of his return from a G20 summit meeting Minister Flaherty called a press conference to announce this new tax relief in order to “support Canada’s continued economic recovery and sustained, business-led, long-term growth.”
This announcement will benefit all RCC members. It is expected to save employers and employees $660 million in 2014. For a small business employing 10 workers, this would represent a savings of up to $340 per year.
Historically, EI rates were set at more than $3.00 per $100 per earnings in 1994 and fell steadily to just under $175 per $100 in 2010. More recently rates had been increasing again. Today’s announcement will hold rates at a maximum of $1.88 for each $100 of earnings for 2014, 2015 and 2016.
Employment Insurance Premium Rates