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Canadian Employment Insurance (EI) Premiums For 2011

The EI premiums have gone up for 2011 (no surprise) so I thought it would be a good idea to go over the new amounts.  Here are the 2007 EI premiums if you want to compare.

First of all the maximum insurable annual earnings has gone up from $43,200 to $44,200 which means that for someone earning more than $43,200  – a larger part of your income will be covered by employment insurance.

The way it works is that for any income up to $44,200 you are charged a premium which is 1.78% of your applicable earnings up to the maximum insurable amount.

The maximum amount of EI premiums for 2011 is $786.76  ($587.52 for Quebec).

This premium is not pro-rated throughout the year so even if you make $90k a year – the EI calculation will be applied to your entire pay cheque starting in January even though this means you will reach the maximum limit before the year is half over.

If you change jobs then the EI contributions start all over again for that year so you will probably end up over contributing.  You will get this over payment back at tax filing time.

The maximum weekly EI payment will be $468 per week.

Here are the 2011 CPP contribution limits.

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