CD 2012-019

Subject: Employment Insurance (EI) and Quebec Parental Insurance Plan (QPIP) - 2013 Taxation Year

December 3, 2012

1. Purpose

1.1. The purpose of this directive is to provide clients with the Employment Insurance (EI) Plan and the Quebec Parental Insurance Plan (QPIP) rates for the 2013 taxation year.

1.2. For additional information on EI and QPIP, refer to ARCHIVED CD 2005-023, dated December 1, 2005.

2. Policy

2.1. EI premiums

2.1.1. EI premiums - employee working outside Quebec

Effective January 1, 2013, the employee's EI premium rate (excluding employees working in the province of Quebec) will be increased from 1.83% to 1.88% of insurable earnings. The annual maximum insurable earnings will be increased from $45,900 to $47,400. Therefore, the maximum annual premium for the 2013 taxation year will be $891.12.

2.1.2. EI premiums - employee working in Quebec

Effective January 1, 2013, the EI premium rate for employees working in the province of Quebec will be increased from 1.47% to 1.52% of insurable earnings. The annual maximum insurable earnings will be increased from $45,900 to $47,400. Therefore, the maximum annual premium for the 2013 taxation year for employees working in the province of Quebec will be $720.48.

2.1.3. EI premiums - employer outside Quebec

The employer's regular premium remains equal to 1.4 times the total of the employee's premium, for those employees working outside Quebec.

2.1.4. EI premiums - employer in Quebec

The employer's regular premium remains equal to 1.4 times the total of the employee's premium, for those employees working in Quebec.

2.2. QPIP premiums (only for employees working in Quebec)

2.2.1. QPIP premiums - employee

Effective January 1, 2013, the employee's QPIP premium rate will remain at 0.559% of insurable earnings. The annual maximum insurable earnings will be increased from $66,000 to $67,500. Therefore, the maximum annual premium for the 2013 taxation year will be $377.33.

2.2.2. QPIP premiums - employer

The employer's regular premium will remain at 0.782% of insurable earnings.

3. Procedures and Instructions

3.1. Effective January 1, 2013, the employee's EI premium rate in the Regional Pay System (RPS) (excluding employees working in the province of Quebec) will be automatically adjusted to 1.88% of insurable earnings.

Effective January 1, 2013, the employee's EI premium rate in the RPS for employees working in the province of Quebec will be automatically adjusted to 1.52% of insurable earnings.

3.2. Effective January 1, 2013, the employee's QPIP rate in the RPS will remain at 0.559% of insurable earnings.

4. Inquiries

4.1. Any inquiries on the information contained in this document should be addressed to your Public Works and Government Services Canada (PWGSC) Compensation Services Office.

Original Signed by
Carrie E. Roussin

Carrie E. Roussin
Director General
Compensation Sector
Accounting, Banking and Compensation

Reference(s): CJA 9006-18

Information Notice to Employees

Employment Insurance (EI) and Quebec Parental Insurance Plan (QPIP) - 2013 Taxation year

The purpose of this notice is to provide you with information concerning the Employment Insurance (EI) Plan rates and the Quebec Parental Insurance Plan (QPIP) rates for the 2013 taxation year.

If you work outside the province of Quebec, your EI premium rate will be increased from 1.83% to 1.88% of insurable earnings for the 2013 taxation year. The annual maximum insurable earnings will increase from $45,900 to $47,400. Therefore, your maximum annual premium for the 2013 taxation year will be $891.12.

If you work in the province of Quebec, your EI premium rate will be increased from 1.47% to 1.52% of insurable earnings starting with the first pay in January 2013. The annual maximum insurable earnings will increase from $45,900 to $47,400. Therefore, your maximum annual premium for the 2013 taxation year will be $720.48.

If you work in the province of Quebec, your QPIP premium rate will remain at 0.559% of insurable earnings on January 1, 2013. The annual maximum insurable earnings will increase from $66,000 to $67,500. Therefore, your maximum annual premium for the 2013 taxation year will be $377.33.

Should you reach the maximum annual premium for either insurance plan in 2013, you will see an increase in the amount of your net pay, as deductions for these will no longer be withheld.

Any request for information regarding this information notice should be addressed to your compensation advisor.