Your money and your new year
The Government of Canada is increasing the maximum amount workers can get on Employment Insurance (EI) from January 1, 2023. This is great news for all categories of workers, especially highly skilled immigrants in job transitions.
The maximum insurable earnings (MIE) is the income level up to which Employment Insurance (EI) premiums are paid. It determines the maximum rate of weekly benefits paid for all types of benefits under the EI program.
Effective January 1, 2023, the MIE will increase from $60,300 to $61,500. This means that an insured worker will pay EI premiums in 2023 on insured earnings up to $61,500.
In 2023, the employee EI premium rate will be $1.63 per $100. This premium rate and the MIE increase means that insured workers will pay a maximum annual EI premium in 2023 of $1,002.45 compared with $952.74 in 2022.
Because of the increased MIE, beginning in January 2023, the maximum weekly EI benefit rate will increase from $638 to $650 per week. Claims established before December 31, 2022, will not be affected by the 2023 MIE increase.
Insured workers will pay EI premiums on all earnings up to the annual maximum salary of $61,500. This means a deduction of $1.63 will be made for every $100 of salary until the $61,500 for the year has been reached.
For example, if an individual earns $65,000 a year, premiums are payable on the first $61,500.
The premium rate for workers in Quebec will be $1.27. This rate is lower than in the rest of Canada, because the Province of Quebec has been collecting premiums from their workers since January 2006 to administer its own maternity, parental, and paternity benefits under the Quebec Parental Insurance Plan.
People can apply for EI online at Service Canada. It usually takes more than 4 weeks for Service Canada to review an application and start paying benefits.