Employment Insurance Premium Rate Capped

The deadline for the Canada Employment Insurance Financing Board to officially announce the EI premium rate for 2011 is November 14, 2010. Speculation of late has been that the rate would be increased by the maximum allowed (0.15%). However, on September 30, the finance minister announced that the maximum increase for 2011 will be limited to .05% and for subsequent years, the increase will be limited to 0.1%.

The EI premium rate for 2010 was capped at the 2009 rate (1.73%; 1.36% in Quebec).  The new rate for 2011 will therefore be no more than 1.78% of insurable earnings.  With Statistics Canada reporting an increase in the average weekly earnings of about 3.9%, one can expect that the maximum insurable earnings will increase from $43,200 to roughly $44,800.  This would mean an increase of about $50.00 in maximum EI premiums ($44,800 x 1.78% ñ $43,200 x 1.73%) to $797.44  (from $747.36). 

The official announcement of the 2011 rate and maximum insurable earnings has not yet been made.