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

Former Stettler resident helps to develop a potential prototype ventilator

Peter Brockley, who now lives in the West Kootenays, was a teacher at William E. Hay Secondary Campus

Non-profits that are helping people impacted by COVID-19 can apply for relief funding

Red Deer and District FCSS can draw from a provincial pot of $30 million

No Alberta renter will be evicted for non-payment on April 1, promises the premier

No evictions during the entire Alberta public health emergency

COLUMN: Overcoming COVID-19 – Damien C. Kurek, M.P. (Battle River-Crowfoot)

‘A crisis is not a time for partisanship; however, a crisis does not mean there should not be accountability’

A Message From the Publisher – ‘We will do our best, but without local advertising revenue, The Stettler Independent cannot survive’

‘We will do our best, but without local advertising revenue, The Stettler Independent cannot survive’

4 passengers dead aboard cruise ship anchored off Panama

4 passengers dead aboard cruise ship anchored off Panama

Drumheller Institution in Alberta locked down, two inmates tested for COVID-19

Drumheller Institution in Alberta locked down, two inmates tested for COVID-19

World update, 9:30 p.m. March 27: Positive news in Korea as U.S. hits 100,000 cases

The United States now has the most coronavirus cases of any country in the world

A message from Central Alberta Co-op

Please remember to practice social distancing at all our locations.

Alberta’s premier rejects call to fire health minister over abuse of citizens

Alberta’s premier rejects call to fire health minister over abuse of citizens

Trump boosts virus aid, warns governors to be ‘appreciative’

Trump boosts virus aid, warns governors to be ‘appreciative’

Marc Miller urges First Nations to delay elections during COVID-19 crisis

Marc Miller urges First Nations to delay elections during COVID-19 crisis

Supreme Court rules against speeder in dangerous-driving case

Supreme Court rules against speeder in dangerous-driving case

Most Read