AHN News Staff
Ottawa, Ontario, Canada (AHN) – Ottawa will have to make a tough decision on a proposed large increase in employment insurance premiums by Jan. 1.
On one hand, workers, employers and the political opposition are moving against the planned premium hike. They have sent Canadian Prime Minister Stephen Harper, Finance Minister James Flaherty and other cabinet members emails and letters expressing their disagreement with the planned increase.
Reports said the EI premium would go up by 15 cents for employees and 21 cents for employers for every $100 earned.
Critics argue that it is not the right time to increase payroll tax, which makes it more costlier for companies to hire a worker. They add that the move would slow down job generation and eventually Canadian economic growth. They warn that if the federal government allows the EI rate increase, 170,000 jobs would be lost over the next three to four years resulting from hiring delays and reduction of work hours.
A new panel established by Ottawa is expected to push for the rate hike when the two-year freeze on EI premiums ends this year. The panel has until Nov. 14 to officially announce the new premiums, while the cabinet has until Nov. 30 to oppose the panel’s decision and provide a different rate.
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