Employment Insurance premiums will be reduced by 5¢ to $2.20 per $100 of earnings in 2002, Finance Minister Paul Martin and Human Resources Development Minister Jane Stewart announced today.

“This reduction will put $400 million in the pockets of workers and businesses next year,” said Martin, noting that this is the eighth consecutive time EI premiums have been lowered since 1994, when they were $3.07 per $100 of earnings. In total, employers and employees will save $6.8 billion in 2002 compared to the 1994 rate. Maximum insurable earnings will remain at $39,000 for 2002.

The rate reduction is based on a joint recommendation to cabinet by Stewart and Martin, and they say it is consistent with the planning assumption used in Budget 2000 and the October 2000 Economic Statement and Budget Update.

“The EI program is responding to the needs of Canadians,” said Stewart. “This reduction in premiums, along with recent changes such as enhancing parental benefits, making small weeks a permanent national feature and repealing the intensity rule, make the program even more responsive.”