The new year brings new rates

Changes to EI, workers' compensation, and RPP and RRSP on the horizon
||Last Updated: 11/30/2005

EI rate going down

The Employment Insurance (EI) premium rate for employees in all parts of Canada but Quebec will go down from 1.95% to 1.87%, beginning January 1, 2006. The employer rate will be 1.4 times the employee rate, or 2.618%, down from 2 .73% in 2005, unless the employer has been approved for a reduced rate.

In Quebec the employee EI premium rate will be 1.53%, while the employer rate will be 2.14%. The rates are different for Quebec because, beginning January 1, 2006, the province will have its own parental insurance program. Employees and employers in the province will have to contribute to that plan and will no longer be covered under EI for maternity or parental benefits.