Minister of Finance Jim Flaherty speaks with the media after making an announcement at an RV dealership today in Ottawa. — Photo by The Canadian Press
OTTAWA — Finance Minister Jim Flaherty says employment insurance premiums will be frozen for the next three years.
Flaherty says previously planned rate hikes are no longer necessary, and the freeze will save businesses and workers $660 million next year.
The premium rate will remain at the 2013 level of $1.88 per $100 of insurance earnings.
Flaherty says the unemployment rate has been falling and EI account is on track to return to balance sooner than expected.
He notes that 60 per cent of the cost of EI premiums is borne by employers, and the freeze will promote hiring.
The Canadian Federation of Independent Business says it’s happy with the announcement.