Source: www.hcamag.com
Decrease comes from changes to Canada Pension Plan and federal Employment Insurance
Take-home income will decrease across Canada next month, due to Canada Pension Plan and federal Employment Insurance (EI) changes. These changes were outlined by the Canada Employment Insurance Commission in its summary of the 2024 Actuarial Report on the Employment Insurance Premium Rate.
In October, the Canadian Federation of Independent Business released a statement expressing its disappointment that the federal government did not take the opportunity to reject the planned EI premium hike.
“In the spring federal budget, Ottawa projected that EI rates would not need to increase into the future because of the strength of Canada’s labour market. But while the labour market remains strong, the rate will now increase at cost of $1.4 billion to businesses and employees in 2024. The EI premium increase will affect all workers, while many will also see an increase in CPP premiums due to a hike in the maximum pensionable earnings calculation,” said Dan Kelly, president and CEO, of CFIB.
