As Canada's economy teeters on the brink of recession, the Department of Employment has revealed that further hikes in Employment Insurance (EI) premiums are necessary to ensure the program's financial sustainability. Blacklock's Reporter says while the department acknowledges that a rate hike this summer would be poorly timed and unpopular with employers, it insists that additional premium rate increases are required to support the EI Operating Account.“Future improvements to the Employment Insurance program will require additional premium rate increases at a time when many economists are predicting a recession,” said the Briefing Binder memo dated last December 11. “This could be mitigated by other measures to support the financial sustainability of the EI Operating Account.”“The 2025 rate will be set based on the information available in summer 2024 and these projections will be released by the Employment Insurance senior actuary in August."Employment Minister Randy Boissonnault echoed this sentiment in May, emphasizing the need for a robust system, especially in the face of economic uncertainty.Despite the projected rate hike, premiums remain at a historic low, with the 2024 rate of $1.66 per hundred dollars of insurable earnings representing a mere three-cent increase from the previous year. However, the department notes that this rate is still seven cents lower than the 2008-2010 rate and 22 cents lower than the 2015 rate.The EI program supports approximately two million Canadians annually, making it the most important income support program in the country. While the government froze premiums for employers and workers for two years as a pandemic relief measure, the program's financial sustainability remains a pressing concern.
As Canada's economy teeters on the brink of recession, the Department of Employment has revealed that further hikes in Employment Insurance (EI) premiums are necessary to ensure the program's financial sustainability. Blacklock's Reporter says while the department acknowledges that a rate hike this summer would be poorly timed and unpopular with employers, it insists that additional premium rate increases are required to support the EI Operating Account.“Future improvements to the Employment Insurance program will require additional premium rate increases at a time when many economists are predicting a recession,” said the Briefing Binder memo dated last December 11. “This could be mitigated by other measures to support the financial sustainability of the EI Operating Account.”“The 2025 rate will be set based on the information available in summer 2024 and these projections will be released by the Employment Insurance senior actuary in August."Employment Minister Randy Boissonnault echoed this sentiment in May, emphasizing the need for a robust system, especially in the face of economic uncertainty.Despite the projected rate hike, premiums remain at a historic low, with the 2024 rate of $1.66 per hundred dollars of insurable earnings representing a mere three-cent increase from the previous year. However, the department notes that this rate is still seven cents lower than the 2008-2010 rate and 22 cents lower than the 2015 rate.The EI program supports approximately two million Canadians annually, making it the most important income support program in the country. While the government froze premiums for employers and workers for two years as a pandemic relief measure, the program's financial sustainability remains a pressing concern.
