ARCHIVED CD 2007-019

Warning This Web page has been archived on the Web.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please contact us to request a format other than those available.

November 21, 2007

SUBJECT: Employment Insurance (EI) and Quebec Parental Insurance Plan (QPIP) -- 2008 Taxation Year

1. PURPOSE

1.1 The purpose of this directive is to provide clients with the Employment Insurance (EI) Plan rates and the Quebec Parental Insurance Plan (QPIP) rates for the 2008 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 "Who are you? - Public Service Employee" page of the Compensation Sector 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

Effective January 1, 2008, the employee's EI premium rate (excluding employees working in the province of Quebec), will be decreased from 1.80% to 1.73% of insurable earnings. The annual maximum insurable earnings will be increased from $40,000 to $41,100. Therefore, the maximum annual premium for the 2008 taxation year will be $711.03.

EI premiums - employee working in Quebec

Effective January 1, 2008, the EI premium rate for employees working in the province of Quebec will be decreased from 1.46% to 1.39% of insurable earnings. The annual maximum insurable earnings will be increased from $40,000 to $41,100. Therefore, the maximum annual premium for the 2008 taxation year for employees working in the province of Quebec will be $571.29.

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, 2008, the employee's QPIP premium rate will be increased from 0.416% to 0.45% of insurable earnings. The annual maximum insurable earnings will be increased from $59,000 to $60,500. Therefore, the maximum annual premium for the 2008 taxation year will be $272.25.

QPIP premiums - employer

The employer's regular premium will be increased from 0.583% to 0.63% of insurable earnings.

3. PROCEDURES - INSTRUCTIONS

3.1 Effective January 1, 2008, 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 1.73% of insurable earnings.

Effective January 1, 2008, the employee's EI premium rate in the RPS, (for employees working in the province of Quebec), will be automatically adjusted to 1.39% of insurable earnings.

3.2 Effective January 1, 2008, the employee's QPIP rate in the RPS, will be automatically adjusted to 0.45% 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
Brigitte Fortin

Brigitte Fortin
Director General
Compensation Sector
Accounting, Banking and Compensation


Reference(s): CJA 9006-18