EI premiums on the rise, Parliamentary Budget Office says

OTTAWA-The cost of employment insurance per worker is set to jump by $535 annually by 2014 over 2010 rates according to a new report from the Parliamentary Budget Office.

The report projects that EI premiums, which were frozen in 2009 and 2010 as a part of the federal government's economic action plan, will rise by the maximum amount each year from 2011 until 2014.

It means that starting in 2011 premiums will jump by 15 cents per $100 earned until they go from the $1.73 per $100 being paid today, to $2.33 per $100 earned in 2014.

In four years time, that will mean an increase of $535 per employee, per year, which will be split with the employee paying $223 and the employer paying $312.

The Parliamentary Budget Office is basing their projections on the fact that the EI fund is currently in deficit because of the recession and the Canadian Employment Insurance Financial Board, which sets rates, will want to get it back into balance as soon as possible.

But even with these hikes it will take until 2015 for the fund to be in surplus again.