GATINEAU, QUEBEC--(Marketwire - Sep 14, 2012) - The Canada Employment Insurance Commission (CEIC) today announced that the Maximum Insurable Earnings (MIE) for 2013 will increase to $47,400 from $45,900.
In addition, for self-employed people who have opted into the EI program, the annual earnings required to qualify for special benefits will increase to $6,342 from $6,222 on January 1, 2013.
The MIE is indexed on an annual basis and represents the ceiling up to which Employment Insurance (EI) premiums are collected. It is therefore also the maximum amount considered in applications for EI benefits.
The EI program insures employment income. Under the Employment Insurance Act, the MIE increases in line with average wages. This makes certain that as workers'' wages rise, the EI program provides a consistent level of income protection.
The CEIC is responsible for determining the annual MIE in accordance with the EI Act and Regulations. The calculations for determining the MIE for 2013 have been performed by the Chief Actuary of the Canada Employment Insurance Financing Board (CEIFB) at the request of the CEIC.
As part of the Government of Canada''s plan for jobs, growth and long-term prosperity, changes have been made to the way the MIE and the EI premium rate are now calculated. In part, these changes allows for an earlier release of the MIE so that businesses and employees can plan for premiums in the coming year. Also, in response to public consultations, the Government is ensuring predictability and stability in the EI premium rate by limiting annual EI premium rate increases to 5 cents until the EI Operating Account is balanced. Once the Account has returned to balance, the EI premium rate will be set annually on a seven‐year break‐even rate to ensure that EI premiums are no higher than needed to pay for the EI program. After the seven‐year rate is set, annual adjustments to the rate will also be limited to 5 cents.
To create jobs now, Economic Action Plan 2012 also extended the $1,000 Hiring Credit for Small Business for one year to help small businesses defray the costs of hiring new workers. This is a practical, proven measure which encourages businesses to hire more workers.
To learn more about Economic Action Plan 2012, visit http://actionplan.gc.ca/.
This news release is available in alternative formats upon request.
Human Resources and Skills Development Canada