MP Cheryl Gallant welcomes reduced EI premiums

November 01, 2007

“Lower EI premiums plus lower taxes equals more take home pay,” says MP

OTTAWA – Renfrew-Nipissing-Pembroke MP Cheryl Gallant says today’s announcement that the Canada Employment Insurance Commission will reduce premium rates for 2008 is more welcome news after the government’s Economic Update revealed meaningful tax cuts for individuals and businesses. “Lower EI premiums, along with the substantial tax reductions, will help to stimulate more job creation in the Ottawa Valley,” said Gallant. “Together, these changes leave more money in the pockets of workers and better position employers to compete in the global economy.”

“I am further encouraged because this initiative reflects one of the concerns that community leaders expressed to me during a roundtable conference with local business owners that was held before the beginning of this session of Parliament. They urged the government to reduce EI premiums,” said Gallant.

The premium rate for employees will fall to $1.73 from its current level of $1.80 per $100 of insurable earnings, effective Jan. 1, 2008. The rate paid by employers will also fall – from $2.52 per $100 of insurable earnings to $2.42.

“The previous government allowed EI premiums to rise so high that these wage deductions effectively became another form of taxation,” said Gallant. “Thankfully, our government is more interested in allowing every day Canadians to keep more of their income and allowing the private sector to create more wealth and more jobs.”

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For more information, please call Cheryl Gallant, M.P. at (613) 732-4404