Restaurants Canada urges Ottawa to lower EI premiums in 2016
Toronto – Restaurants Canada is urging Ottawa to act on a government actuary report and lower Employment Insurance premiums in 2016, rather than wait until 2017.
Lower premiums would be much-needed good news for employers and employees who pay into the EI program, the association said in a news release.
A summary of the Actuarial Report on the Employment Insurance Premium Rate released Monday indicates that EI premiums should drop to $1.56 per $100 of insurable earnings in 2016 from the current rate of $1.88.
At $1.56, the program is forecast to be at a break-even rate without a deficit in the Operating Account, as the legislation requires. However, the EI Act was amended this year to allow the premium rate to remain artificially high until 2017 when a significant premium drop is expected.
Reducing EI premiums in 2016 would be great news for employees and employers alike,” said Joyce Reynolds, executive vice-president of government affairs with Restaurants Canada. “The savings would add up to $68 million for restaurant operators alone, and would certainly help with job creation in these turbulent times.”