Posted by Tim Stobbs on March 15, 2010
Out of curiosity I looked into if there are forecasts for EI rates for the next few years and the results are not exactly encouraging. First there was this recent forecast which projected the maximum increase ($0.15/year) until 2015, which actually tracks fairly closely to this older but more detailed forecast (see chart 2 on page 3).
Overall the numbers will looks something like this (rate per $100 of earnings):
- 2010/11 – $1.73
- 2011/12 – $1.88
- 2012/13 – $2.03
- 2013/14 – $2.18
- 2014/15 – $2.33
So we are looking roughly at a 35% increase over the next four years and this according to our government is not a tax but rather a premium increase. Which since it looks like my total EI deduction will easily be in excess of $1000/year when the current maximum is just under $750 doesn’t provide much comfort for me. For employers, by the way, the matching rate is just 1.4 times the above numbers.
Overall expect to pay more for EI for many years to come. The only good news in the longer term is if unemployment goes down we should see those premiums come back down by 2017 or so. So at least I should see some lower rates before I plan to retire in 2023, I hope at least.