2.43 per cent would generate enough revenue to cover payments but feds froze rate at 1.73 as part of economic action plan
A report from the Canada Employment Insurance Commission has revealed the EI premium rate for 2010 that would generate enough revenue to cover expected payments.
This break-even premium rate would be $2.43 per $100 of insurable earnings for all provinces except Quebec, which has its own provincial plan and thus a premium reduction of 0.37 percent for a break-even rate of $2.06 per $100, according to the 2010 Report of the Chief Actuary to the Employment Insurance Commission.
This premium reflects the proposed legislation that would temporarily provide five to 20 weeks of additional EI benefits to unemployed, long-tenured workers.
However, because the federal government froze the EI premium rate for 2010 at the 2009 level of $1.73 per $100 of insurable earnings as part of its economic action plan, the calculation of this year's break-even premium rate serves an informational purpose only.
As a result, for 2010, the EI rate for Quebec is set at 1.36 per cent and the rate for the rest of Canada will remain at 1.73 per cent.
The report also increased the maximum insurable earnings to $43,200 from $42,300. The maximum employee and employer yearly contributions also increased to $747.36 and $1,046.30, respectively.
In Quebec, the maximum contribution for employees increased to $587.52 and the maximum contribution for employers increased to $822.53.
The maximum weekly EI benefits to claimants increased to $457 a week from $447.
Going forward, the Canada Employment Insurance Financing Board (CEIFB) will be responsible for a new EI premium rate-setting mechanism and will set the 2011 EI premium rate.
