The Employment Insurance (EI) premium rate for employees in all parts of Canada but Quebec will go down from 1.87 per cent to 1.8 per cent, beginning January 1, 2007. The employer rate will be 1.4 times the employee rate, or 2.52 per cent, down from 2.62 per cent in 2006, unless the employer has been approved for a reduced rate.
In Quebec the employee EI premium rate will be 1.46 per cent, down from 1.53 per cent. The employer rate will be 2.04 per cent, down from 2.14 per cent. The rates for Quebec differ because of the Quebec Parental Insurance Plan, which came into force Jan. 1, 2006. Employees and employers in the province contribute to that plan for maternity, paternity, parental and adoption benefits and, as a result, pay EI premiums only for other EI benefits (e.g., regular, sickness, compassionate care).
The maximum insurable earnings will increase to $40,000 for 2007. It will be the first increase since 1996. As a result, the maximum employee contribution for next year will be $720, while the maximum employer contribution will be $1,008. For Quebec employees, the maximum employee EI contribution will be $584, while the employer maximum will be $817.60.
CPP rates and maximums
The Canada Revenue Agency has released the Canada Pension Plan (CPP) rates and maximums for 2007. They are:
|Maximum pensionable earnings:||$43,700|
|Maximum contributory earnings:||$40,200|
|Contribution rate (employee and employer):||4.95 per cent|
|Maximum employee contribution:||$1,989.90|
|Maximum employer contribution:||$1,989.90|
WCB maximum insurable earnings
The following workers’ compensation bodies have announced their maximum assessable/insurable earnings ceiling for 2007:
|Newfoundland and Labrador||$47,245||$48,425|