EI premiums to fall in 2020 for workers and employers

As of Jan. 1, the premium for individual workers will drop four cents per $100 of insurable earnings

Minister of Finance Bill Morneau and Minister of Middle Class Prosperity and Associate Minister of Finance Mona Fortier make an announcement on lowering taxes for the middle class in the Foyer of the House of Commons on Parliament Hill in Ottawa, on Monday, Dec. 9, 2019. (THE CANADIAN PRESS/Justin Tang)

Minister of Finance Bill Morneau and Minister of Middle Class Prosperity and Associate Minister of Finance Mona Fortier make an announcement on lowering taxes for the middle class in the Foyer of the House of Commons on Parliament Hill in Ottawa, on Monday, Dec. 9, 2019. (THE CANADIAN PRESS/Justin Tang)

Canadian workers and employers will enjoy a slight decrease in employment insurance premiums in the new year, resulting in about $1.1 billion in total reductions in 2020.

Starting on Jan. 1, the premium for individual workers will be $1.58 per $100 of insurable earnings while their employers will pay $2.21 per $100 of the workers’ insurable earnings.

Employment and Social Development Canada, which administers the program, says that’s a decrease of four cents per $100 for workers and six cents per $100 for employers compared with the 2019 rates.

The annual EI adjustments also include an $1,100 increase in the maximum insurable earnings, which will be $54,200 in 2020.

As a result of adjustments, the maximum annual EI contribution for a worker will fall by $3.86 to $856.36 and employers’ maximum contribution will fall $5.41 to $1,198.90 per employee.

For self-employed Canadians who have opted into the EI program, the annual earnings required in 2019 will increase to $7,279 for claims filed in 2020.

READ MORE: EI benefits for sick workers cost feds $1 billion a year

In a fiscal update issued Dec. 16, the finance department signalled that EI premiums will decrease further in 2021 to $1.55 per $100 of insurable earnings, causing a proportionate decline in what employers pay, which is 1.4 times the individual rate.

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

BC Emergency Health Services Advanced Care Paramedic Practice Educator Trevor Campbell. (Vernon Jubilee Hospital Foundation - Contributed)
ECG machines onboard Okanagan ambulances for quickest response to heart attacks

Donations from Lake Country, Predator Ridge, Vernon and Armstrong behind purchase of 8 live-saving machines

Ranchero Deep Creek firefighters respond to a blaze involving two adjacent structures at a property off of Deep Creek Road on Sunday, Feb. 21. The buildings were believed to have been used as part of a cannabis growing operation, and RCMP are investigating. (Sean Coubrough/CSRD photo)
Ranchero Deep Creek firefighters respond to a blaze involving two adjacent structures at a property off of Deep Creek Road on Sunday, Feb. 21. The buildings were believed to have been used as part of a cannabis growing operation, and RCMP are investigating. (Sean Coubrough/CSRD photo)
Update: Fire at North Okanagan-Shuswap cannabis grow operation not suspicious

Ranchero-Deep Creek firefighters find two structures ablaze on property

A 50-year-old Lake Country man was arrested and cocaine, methamphetamine and fentanyl were seized from his vehicle after a concerned citizen called in the suspicious vehicle idling on the wrong side of Woodsdale Road Feb. 18, 2021. (Lake Country RCMP)
Drugs, cash seized from suspicious three-wheeled vehicle in Lake Country

Man, 50, arrested after police respond to concerned citizen’s call

(Phil McLachlan - Black Press file)
Enderby man prohibited from driving after colliding into Kelowna bus stop

Vehicle was towed, 35-year-old man served 24-hour driving prohibition

Numbers of new COVID-19 cases for the week of Feb. 14 to 20 appear to be trending down for all local health areas in the North Okanagan-Shuswap. (BC Centre for Disease Control map)
Colours on COVID-19 map getting lighter for North Okanagan-Shuswap

Number of new weekly cases reported by BC Centre for Disease Control drop throughout region

Provincial health officer Dr. Bonnie Henry updates B.C.’s COVID-19 situation at the B.C. legislature. (B.C. government)
B.C. reports 10 additional deaths, 395 new COVID-19 cases

The majority of new coronavirus infections were in the Fraser Health region

Enchante the cat. AlleyCats.
Okanagan pet rescue looking for adoption hero

AlleyCats is looking for a special forever home for a young grey tabby

Kelowna Law Courts. (Phil McLachlan - Capital News)
Accused Kelowna Canada Day killer confessed to ‘murder’ in drunk tank, court hears

Noah Vaten is charged with manslaughter related to a killing on Canada Day in 2018

Captain and Maria, a pair of big and affectionate akbash dogs, must be adopted together because they are so closely bonded. (SPCA image)
Shuswap SPCA seeks forever home for inseparable Akbash dogs

A fundraiser to help medical expenses for Captain and Maria earned over 10 times its goal

(File photo)
Federal Court exonerates Kamloops Mountie in burger beef dispute

A Federal Court ruling has overturned punishment in case involving a cop, McDonald’s manager

Numbers of new COVID-19 cases for the week of Feb. 14 to 20 appear to be trending down for all local health areas in the North Okanagan-Shuswap. (BC Centre for Disease Control map)
Weekly COVID-19 case count continues downward trend in Central Okanagan

BC CDC data show 36 new cases in the region over Feb. 14-20

(Kevin N. Hume/Black Press file)
Penticton’s bike lane gets $1 million provincial grant

The grant must be used by the end of 2021

A 50-year-old man was stabbed in an altercation that started with a disagreement about physical distancing. (File photo)
Argument about physical distancing escalates to stabbing in Nanaimo

Victim, struck with coffee cup and then stabbed, suffers minor injuries; suspect arrested

Most Read