Canada Employment Insurance Commission announces 2014 Maximum Insurable Earnings

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Canada Employment Insurance Commission announces 2014 Maximum Insurable Earnings

Gatineau, Quebec — Further to the Government of Canada’s announcement that it will freeze the Employment Insurance (EI) premium rate for employees at the 2013 level of $1.88 per $100 of insurable earnings for 2014, and additionally that the rate will be set no higher than $1.88 for 2015 and 2016, the Canada Employment Insurance Commission (CEIC) today announced that the EI Maximum Insurable Earnings (MIE) for 2014 will increase to $48,600 from $47,400 in 2013. In accordance with the Employment Insurance 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.

For residents of Quebec 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.

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 $6,515 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.

While Canadahas seen steady job creation since the end of the global recession with over one million net new jobs, challenges remain in the global economy. The rate freeze for EI premiums announced today by the Honourable Jim Flaherty, Minister of Finance, demonstrates the concrete action this government has taken to ensure the predictability and stability of EI premium rates. This leaves $660 million in the pockets of job creators and Canadian workers in 2014 alone which will help employers, especially small businesses, keep growing.

To ensure continued transparency and accountability in the rate setting process, CEIC is responsible for engaging the Actuary of the Office of the Superintendent of Financial Institutions to prepare a report 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

Source: http://news.gc.ca/

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