Regulation

2017 Employment Insurance Changes

Jan 30, 2017
·
2
min read

The Canada Employment Insurance Commission has recently confirmed the 2017 EI premium rates.

So, how will that impact your organization's plan? Well, let’s start with the numbers:

  • The employee premium rate will decrease to $1.63 (from $1.88) per $100 of insurance earnings.
  • The maximum employee contribution will also decrease to $836.19 from $955.04 in 2016.
  • Meanwhile, the new employer premium rate is lower at 1.4X the employee rate, and the maximum employer contribution will decrease accordingly.
  • If you’re in Quebec, where EI works differently, the EI rate effective January 1, 2017 will be $1.27 (from $1.52) per $100 of insurance earnings.

What does this mean?

These changes can translate into major savings both for employees and their employers, while some smaller employers may even qualify for an additional premium reduction.The 2017 rate change is the first under a new rate-setting mechanism that will set the EI premium rate annually at a seven-year break-even level, as forecasted by the EI Chief Actuary. Annual rate adjustments after 2017 will be subject to a limit of 5 cents.

That’s a lot of numbers! The end result of which can mean a little more money in your employee’s pockets.

But did you know these changes can impact parts of your group benefits plan? Employers have some due diligence surrounding these changes. Some questions you need to ask yourself to start are:

  • Are you participating in the EI Premium Reduction Program?
  • Is your short-term disability plan (be it insured or self-funded) still meeting the eligibility requirements, in light of these changes?
  • Was your LTD plan designed to kick in as the EI benefit is exhausted?
  • Should you make any changes? Do you know what your options are with your insurer?

Also, while the total EI benefit duration itself is not reduced, there is a shorter waiting period for EI benefits — it was reduced from two weeks to one week. If you offer long-term disability benefits to your employees, you’ll want to ensure it still meets your corporate/employee needs.

If you're thinking "what’s right for my organization, what changes are needed, and what are my choices?", it might be time to talk to your broker to ensure you’re getting the most from your group benefits plan.

No broker? No problem.

Humi is your all-in-one HR, Benefits, and Payroll solution. Find out how we can ensure that you're confident and succesful wih the way you manage your benefits. Show me how

Topics in this article
About the Author
Emmett O'KaneEmmett O'Kane

Emmett is a Licensed Benefits Solutions Advisor at Humi. Emmett's team helps clients ensure they have the perfect benefits plan for their organization, customized for their people, at the best price. Emmett has worked in technology his entire career and having been with Humi since the company's inception, Emmett has guided hundreds of businesses through their benefits, HR, and payroll administration.

Upcoming
The new compensation strategy: how a retirement plan can be your secret weapon
Thu
,
Oct
28
,
1:00 pm
EST
Starting in
00
Days
00
Hrs
00
Min
00
Sec
Register Now
Upcoming
Growing your HR department: a conversation with two HR professionals
Thu
,
Nov
25
,
1:00 pm
EST
Starting in
00
Days
00
Hrs
00
Min
00
Sec
Register Now

Get HR insights from Andrea
Subscribe to Think with Humi

Hey there 👋 my name is Andrea Bartlett.

I’m the Director of HR at Humi, and I’m obsessed with all things people and human resources. Throughout my time working in a range of industries, I’ve learned that one thing is clear: the world of work is changing and HR professionals are leading the charge. 

I believe that businesses should know their people as well as they know their product. But people are complex, and the solutions aren’t always easy. That’s how Think with Humi will help. 

Written by me, this newsletter is designed to give you insight into the relevant and raw people challenges, and give you the tools to enable you to continuously to shape the future of work. 

Written by a people leader, for people leaders.

Written by a real HR expert

Yes, Andrea is actually writing them every two months. Got questions about something in an email? No problem – reply to the email and she’ll get back to you.

Not your typical HR content

We know that HR is evolving and you don’t need to be told the same advice you've been hearing for years.

Practical resources

A list of resources that we find useful. If a template or an article has helped us, it’s probably going to help you too.

Get  HR insights from Andrea
Subscribe to Think with Humi

Continue reading

Explore Topics