Sick leave plans can lead to lower EI premiums

The federal government’s EI Premium Reduction Program can benefit employers with short-term disability plans
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 11/03/2015

Employment insurance (EI) premium rates may be frozen at 1.88 per cent for the next year for employers outside Quebec, but some employers will still see lower EI rates in 2016.

Employers that take part in the federal government’s EI Premium Reduction Program (PRP) pay premiums at rates that are less than the standard 1.4 times the employee rate other employers pay.

For 2016, employers registered in the program can expect their employer multiplier to range from 1.203 times the employee rate to 1.296, depending on the category in which Employment and Social Development Canada (ESDC) places them for the rate reduction.