The department of Employment says that Employment Insurance premiums are at a “historical low” and need to increase to cover extra costs from the pandemic..By the end of the month, new premium rates will be provided..“Premium rates are expected to continue to increase in 2024 to reach a break-even rate that will pay down the costs of the current cumulative deficit in the Employment Insurance Operating Account,” said a Briefing Binder for the deputy minister. .“Costs stemming from COVID-19 temporary measures total approximately $23.2 billion.”.According to Blacklock’s Reporter, the cabinet had frozen premiums for employers and workers for two years as a COVID-19 relief measure. Premiums last September 24 were raised from $1.58 per hundred dollars of insurable earnings to $1.63. .A previous Employment Insurance Actuarial Report estimated premiums must reach $1.74 to break even..“The government remains committed to ensuring the Employment Insurance program is accessible, adequate and affordable for employees and employers while remaining financially sustainable in the long term,” said Briefing Binder..“The 2023 Employment Insurance premium rate of $1.63 is at a historical low,” said the memo. .“It is 10¢ lower than it was between 2008 and 2010 and 25¢ lower than the 2015 premium rate of $1.88 per $100 of insurable earnings.”.From 2020 to 2022, the rate of $1.58 was kept the same..“With the five-cent increase in 2023, workers earning at or above the maximum insurable earnings threshold are paying $49.71 more in premiums than they did in 2022, while employers are paying $69.59 more for each of their employees,” said Briefing Binder..“While the premium rate for 2024 will be determined by the Employment Insurance Actuarial Report that will be released in August, the latest public figures from the 2022 Fall Economic Statement projected the Employment Insurance break-even premium rate for 2024 at $1.66 per $100 of insurable earnings,” said the report. .“If premiums were held at this rate, the Employment Insurance Operating Account would be brought to near cumulative balance by 2030.”.In a recent briefing note, the Employment department stated that many people applying for Employment Insurance have been calling the federal call centres..“Call volumes have skyrocketed,” said the note 1-800-O-Canada..Current funding “only covers up to 1.6 million calls a year,” said the briefing note. Actual volumes were higher by a third, it said. No reason was given..“When compared to the pre-pandemic level of demand, call volume has increased by 35% from 1.6 million calls in 2019 compared to 2.1 million calls in 2022 and 2.2 million calls in 2023,” said the June 28 note.
The department of Employment says that Employment Insurance premiums are at a “historical low” and need to increase to cover extra costs from the pandemic..By the end of the month, new premium rates will be provided..“Premium rates are expected to continue to increase in 2024 to reach a break-even rate that will pay down the costs of the current cumulative deficit in the Employment Insurance Operating Account,” said a Briefing Binder for the deputy minister. .“Costs stemming from COVID-19 temporary measures total approximately $23.2 billion.”.According to Blacklock’s Reporter, the cabinet had frozen premiums for employers and workers for two years as a COVID-19 relief measure. Premiums last September 24 were raised from $1.58 per hundred dollars of insurable earnings to $1.63. .A previous Employment Insurance Actuarial Report estimated premiums must reach $1.74 to break even..“The government remains committed to ensuring the Employment Insurance program is accessible, adequate and affordable for employees and employers while remaining financially sustainable in the long term,” said Briefing Binder..“The 2023 Employment Insurance premium rate of $1.63 is at a historical low,” said the memo. .“It is 10¢ lower than it was between 2008 and 2010 and 25¢ lower than the 2015 premium rate of $1.88 per $100 of insurable earnings.”.From 2020 to 2022, the rate of $1.58 was kept the same..“With the five-cent increase in 2023, workers earning at or above the maximum insurable earnings threshold are paying $49.71 more in premiums than they did in 2022, while employers are paying $69.59 more for each of their employees,” said Briefing Binder..“While the premium rate for 2024 will be determined by the Employment Insurance Actuarial Report that will be released in August, the latest public figures from the 2022 Fall Economic Statement projected the Employment Insurance break-even premium rate for 2024 at $1.66 per $100 of insurable earnings,” said the report. .“If premiums were held at this rate, the Employment Insurance Operating Account would be brought to near cumulative balance by 2030.”.In a recent briefing note, the Employment department stated that many people applying for Employment Insurance have been calling the federal call centres..“Call volumes have skyrocketed,” said the note 1-800-O-Canada..Current funding “only covers up to 1.6 million calls a year,” said the briefing note. Actual volumes were higher by a third, it said. No reason was given..“When compared to the pre-pandemic level of demand, call volume has increased by 35% from 1.6 million calls in 2019 compared to 2.1 million calls in 2022 and 2.2 million calls in 2023,” said the June 28 note.
