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Sep 16, 2013

Maximum insurable earnings announced for 2014

Canada Employment Insurance Commission boosts maximum to $48,600
    
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The Canada Employment Insurance Commission (CEIC) announced that the 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 employment insurance (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 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.

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.

Last week, Canada announced 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 that the rate will be set no higher than $1.88 for 2015 and 2016.

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