Maximum per-employee contribution drops by $28
The federal government will reduce employment insurance premiums by seven cents to $3.08 for each $100 of insurable earnings, in 2002. The most any employer will pay for an employee will drop $28, to $1,201 from $1,229.
Contributions are geared to income but max out when an employee’s salary reaches $39,000.
For employees, premiums will be reduced by a nickel. That will save each employee about $20 a year. The EI rate will drop to $2.20 for each $100 of insurable earnings beginning Jan. 1. The maximum contribution an employee will make next year drops to $858 from $878.
The premium reduction won't be enough to offset the increase in Canada Pension Plan premiums; payroll taxes for both employees and employers will rise, say business groups.
The cuts will cost the government $400-million in revenue but are intended to put that $400-million in the pockets of workers and businesses next year, says Finance Minister Paul Martin.
Contributions are geared to income but max out when an employee’s salary reaches $39,000.
For employees, premiums will be reduced by a nickel. That will save each employee about $20 a year. The EI rate will drop to $2.20 for each $100 of insurable earnings beginning Jan. 1. The maximum contribution an employee will make next year drops to $858 from $878.
The premium reduction won't be enough to offset the increase in Canada Pension Plan premiums; payroll taxes for both employees and employers will rise, say business groups.
The cuts will cost the government $400-million in revenue but are intended to put that $400-million in the pockets of workers and businesses next year, says Finance Minister Paul Martin.
