Finance Minister Jim Flaherty announced a 3 year-freeze on EI premiums for employers and employees in Ottawa on Monday as a way to support small and medium businesses and working Canadians.
Flaherty said the step will result in savings of $660 million in 2014.
"We are able to do this because of the falling unemployment rate — more people are working, fewer people are claiming Employment Insurance benefits and as a result the Employment Insurance operating account is on track to return to balance earlier than had been planned," Flaherty told reporters.
Employees currently pay a maximum annual EI premium of $891.12 while employers pay $1,247.57 based on a maximum annual insurable earnings of $47,400.
That works out to a 1.88 per cent EI premium rate for employees.
More to come
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