Feds cut EI rate for employers, employees

But businesses charge the premium is still too high and is piling more money on the EI surplus
|hrreporter.com|Last Updated: 09/02/2005

The federal government is reducing the employment insurance (EI) contribution rate for employers and employees on Jan. 1, 2005.

The rate for employees will drop to $1.95 per $100 of insurable earnings, down from the current level of $1.98 per $100. The rate paid by employers will drop to $2.73 from $2.77 per $100 of insurable earnings.

“Today’s announcement represents the 11th consecutive reduction in the EI premium rate since 1994 when the rate was $3.07,” said Minister of Finance Ralph Goodale. “As a result of these rate reductions, employers and employees will pay $10.5 billion less in premiums in 2005 than they would have paid under the 1994 rate.”