CD 2010-022

• Information Notice to Employees

November 25, 2010

SUBJECT: Employment Insurance (EI) and Quebec Parental Insurance Plan (QPIP) -- 2011 Taxation Year

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 2011 taxation year.

1.2 A notice of information to employees concerning the above has been included with this Compensation Directive and will also be posted in the "Are You a Public Service Employee?" Web site.

1.3 For additional information on EI and QPIP, refer to Compensation Directive 2005-023, dated December 1, 2005.

2. POLICY

2.1 Employment Insurance (EI)

2.1.1 EI premiums - employee and employer

EI premiums - employee working outside Quebec

For the 2011 taxation year, the employee's EI premium rate (excluding employees working in the province of Quebec) will be increased from 1.73% to 1.78% of insurable earnings. The annual maximum insurable earnings will be increased from $43,200 to $44,200. Therefore, the maximum annual premium for the 2011 taxation year will be $786.76.

EI premiums - employee working in Quebec

Effective January 1, 2011, the EI premium rate for employees working in the province of Quebec will be increased from 1.36% to 1.41% of insurable earnings. The annual maximum insurable earnings will be increased from $43,200 to $44,200. Therefore, the maximum annual premium for the 2011 taxation year for employees working in the province of Quebec will be $623.22.

EI premiums - employer outside Quebec

The employer's regular premium remains equal to 1.4 times the total of the employee's premium.

EI premiums - employer in Quebec

The employer's regular premium remains equal to 1.4 times the total of the employee's premium.

2.2 Quebec Parental Insurance Plan (QPIP)

2.2.1 QPIP premiums - employee and employer

QPIP premiums - employee

Effective January 1, 2011, the employee's QPIP premium rate will be increased from 0.506% to 0.537% of insurable earnings. The annual maximum insurable earnings will be increased from $62,500 to $64,000. Therefore, the maximum annual premium for the 2011 taxation year will be $343.68.

QPIP premiums - employer

The employer's regular premium will be increased from 0.708% to 0.752% of insurable earnings.

3. PROCEDURES - INSTRUCTIONS

3.1 Effective January 1, 2011, 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 1.78% of insurable earnings.

Effective January 1, 2011, the employee's EI premium rate in the RPS for employees working in the province of Quebec will be automatically adjusted to 1.41% of insurable earnings.

3.2 Effective January 1, 2011, the employee's QPIP rate in the RPS will be automatically adjusted to 0.537% 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