Rate drops to $1.98 — a savings of $9.7 billion for employers and employees compared to 1994 rates
Employment Insurance premiums will be cut by 12 cents to $1.98 in 2004, the federal government has announced.
This reduction is in accordance with the announcement made in the Feb. 18, 2003, budget and the passage of Bill C-28 in June. Maximum insurable earnings will remain at $39,000 for 2004.
The EI premium rate has declined each year from $3.07 in 1994 to $2.10 in 2003. The rate of $1.98 for 2004 is the 10th consecutive reduction in the rate since 1994. Over that 10-year span, the rate has been reduced by more than a third.
The reductions translate in an annual savings to employers and employees of $9.7 billion in 2004 compared to the 1994 rate.
The 2003 budget launched public consultations on a new rate-setting regime for 2005 and beyond. The government said it is currently reviewing the results and a summary will be made available in the near future. Legislation to implement the results of this process will be introduced in time to have the new regime in place for 2005, the government said.
This reduction is in accordance with the announcement made in the Feb. 18, 2003, budget and the passage of Bill C-28 in June. Maximum insurable earnings will remain at $39,000 for 2004.
The EI premium rate has declined each year from $3.07 in 1994 to $2.10 in 2003. The rate of $1.98 for 2004 is the 10th consecutive reduction in the rate since 1994. Over that 10-year span, the rate has been reduced by more than a third.
The reductions translate in an annual savings to employers and employees of $9.7 billion in 2004 compared to the 1994 rate.
The 2003 budget launched public consultations on a new rate-setting regime for 2005 and beyond. The government said it is currently reviewing the results and a summary will be made available in the near future. Legislation to implement the results of this process will be introduced in time to have the new regime in place for 2005, the government said.
