Payroll costs reduce for Canadian employers in 2007

Leeds, UK: The Canadian government has confirmed the decision of the Canada Employment Insurance Commission to reduce employment insurance (EI) premium rates for 2007. For employees, the premium rate will fall to $1.80 from its current level of $1.87 per $100 of insurable earnings, effective January 1, 2007. The rate paid by employers will be reduced to $2.52 from $2.62 per $100 of insurable earnings.

The 2007 EI premium rates for Quebec will be $1.46 for employees and $2.04 for employers. These are lower than in the rest of Canada because Quebec finances its own parental benefits.

The maximum insurable earnings (MIE) for 2007 will be $40,000, up $1,000 from its 2006 level. The premium rate reduction combined with the MIE increase will save employers and employees $420 million compared to the 2006 premium rate and MIE.

For more information, see http://www.fin.gc.ca/news06/06-066e.html

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