Changes to EI Maximum Insurable Earnings and Impact to Plans with Short-Term Disability
The Canada Employment Insurance Commission (CEIC) have reported the changes to the Maximum Weekly Insurable Earnings (MWIE) and Maximum Insurable Earnings (MIE), which come into effect January 1, 2021.
MIE will increase from $54,200 to $56,300, which increases the Maximum Weekly Insurable Earnings (MWIE) from $1,042 to $1,083. As EI benefits are 55% of the MWIE, the EI benefit increases from $573 to $595.
What Does This Mean for Plan Sponsors?
EI Premium Rate Update
Due to the economic impact of the global COVID-19 pandemic, the Government of Canada authorized a temporary freeze to the EI premium rate for 2021 and 2022 at the 2020 level. The EI premium rate will remain at $1.58 per $100 of insurable earnings for employees. For more information, visit Canada Employment Insurance Commission.
At Oak House Benefits, we’re here to help. We would be pleased to review your plan to ensure you remain qualified for the EI premium reduction program. Please reach out and say hello – we can’t wait to hear from you.
Sandra Scott
Principal Consultant
Oak House Benefits