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.
The EI premium hike will further drive up the cost of doing business for Canada’s small businesses while shrinking the paycheques of Canadian workers.
CFIB is calling on Ottawa to introduce a lower rate or credit for small businesses to offset the rate increases for employers.
– Dan Kelly, President and CEO, CFIB
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