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Ottawa, November 25, 2003
2003-059
Employment Insurance Premium Cut: Rate Set at $1.98 for 2004
Related document:
Employment insurance (EI) premiums will be reduced by 12 cents to $1.98 in 2004, John Manley, Deputy Prime Minister and Minister of Finance, and Jane Stewart, Minister of Human Resources Development, confirmed today.
This reduction is in accordance with the announcement made in the budget of February 18, 2003, and the passage of Bill C-28 in June. Maximum insurable earnings will remain at $39,000 for 2004.
The EI premium rate has declined each year from $3.07 in 1994 to $2.10 in 2003. The rate of $1.98 for 2004 is the 10th consecutive reduction in the EI premium rate since 1994. Thus, over the 10-year period from 1994 to 2004, the EI premium rate has been reduced by more than a third.
These reductions in the EI premium rate will result in ongoing annual savings to employers and employees of $9.7 billion in 2004, compared to the 1994 rate.
Budget 2003 launched public consultations on a new rate-setting regime for 2005 and beyond. The Government is currently reviewing the results and a summary will be made available in the near future. Legislation to implement the results of this process will be introduced in time to have the new regime in place for 2005.
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For further information:
| Andrée Houde Public Affairs and Operations Division Department of Finance Canada (613) 996-8080 |
Mike Scandiffio Communications Advisor Office of the Deputy Prime Minister and Minister of Finance (613) 996-7861 |
| Media Relations Human Resources Development Canada (819) 994-5559 |
Andrew Graham Press Secretary Office of the Minister of Human Resources Development Canada (819) 994-2482 |
If you would like to receive automatic e-mail notification of all news releases, please visit the Department of Finance Canada Web site at http://www.fin.gc.ca/scripts/register_e.asp.
Impact of Changes to the EI Premium Rate and Maximum Insurable Earnings: 1994 to 2004
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| Maximum Annual Insurable Earnings | Premium Rate Per $100 of Insurable Earnings | Maximum Annual Contribution | Change in Maximum Annual Contribution | ||||
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| EE* | ER* | EE | ER | EE | ER | ||
| 1994 | $40,560 | $3.07 | $4.30 | $1,245 | $1,743 | ** | |
| 1995 | $42,380 | $3.00 | $4.20 | $1,271 | $1,780 | + $26 | + $37 |
| 1996 | $39,000 | $2.95 | $4.13 | $1,151 | $1,611 | - $121 | - $169 |
| 1997 | $39,000 | $2.90 | $4.06 | $1,131 | $1,583 | - $20 | - $27 |
| 1998 | $39,000 | $2.70 | $3.78 | $1,053 | $1,474 | - $78 | - $109 |
| 1999 | $39,000 | $2.55 | $3.57 | $995 | $1,392 | - $59 | - $82 |
| 2000 | $39,000 | $2.40 | $3.36 | $936 | $1,310 | - $59 | - $82 |
| 2001 | $39,000 | $2.25 | $3.15 | $878 | $1,229 | - $59 | - $82 |
| 2002 | $39,000 | $2.20 | $3.08 | $858 | $1,201 | - $20 | - $28 |
| 2003 | $39,000 | $2.10 | $2.94 | $819 | $1,147 | - $39 | - $55 |
| 2004 | $39,000 | $1.98 | $2.77 | $772 | $1,081 | - $47 | - $66 |
| Cumulative change in maximum annual contribution since 1994 | - $473 | - $662 | |||||
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* EE: employee contributions; ER: employer contributions (1.4 times the employee rate).
** This column shows yearly changes since 1994. Numbers are rounded.
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| Last Updated: 2004-11-02 |
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