News

The Employment Insurance Commission announced the Employment Insurance (EI) premium rates for 2006 will drop 8 cents, from $1.95 per $100 of insurable earnings to $1.87 for employees.

The Canadian Federation of Independent Business (CFIB) called the announcement a positive step towards renewing confidence in the EI system.

"This is good news; the 8-cent reduction for employees and 11-cent reduction for employers is significant compared to the 3-cent decreases we have seen in the past few years," said CFIB vice-president Garth Whyte. "The announced rates will leave $800-million dollars in the economy, easing some of the burden on employers and employees."

The amount paid by employers was reduced by 11 cents to $2.62 from $2.73 per $100 of insurable earnings which amounts to 1.4 times the rate employees pay.

According Mr. Whyte, the reduction will be a direct benefit to small and medium business.

"SME owners across Canada have long-held concerns with the EI system, today's announcement helps to build trust in the new rate setting mechanism that was set up to improve accountability and transparency. The size of the reduction and the early date of the announcement help to provide a little certainty in uncertain times for SMEs," said Mr. Whyte.

The CFIB is a national lobby group representing the rights and interests of more than 105,000 owners of small- and medium-sized businesses.

Lobby group applauds EI rate reduction

CFIB calls 4.1 per cent decline a positive step for small businesses

The Employment Insurance Commission announced the Employment Insurance (EI) premium rates for 2006 will drop 8 cents, from $1.95 per $100 of insurable earnings to $1.87 for employees.

The Canadian Federation of Independent Business (CFIB) called the announcement a positive step towards renewing confidence in the EI system.

"This is good news; the 8-cent reduction for employees and 11-cent reduction for employers is significant compared to the 3-cent decreases we have seen in the past few years," said CFIB vice-president Garth Whyte. "The announced rates will leave $800-million dollars in the economy, easing some of the burden on employers and employees."

The amount paid by employers was reduced by 11 cents to $2.62 from $2.73 per $100 of insurable earnings which amounts to 1.4 times the rate employees pay.

According Mr. Whyte, the reduction will be a direct benefit to small and medium business.

"SME owners across Canada have long-held concerns with the EI system, today's announcement helps to build trust in the new rate setting mechanism that was set up to improve accountability and transparency. The size of the reduction and the early date of the announcement help to provide a little certainty in uncertain times for SMEs," said Mr. Whyte.

The CFIB is a national lobby group representing the rights and interests of more than 105,000 owners of small- and medium-sized businesses.