Employment Insurance Premiums

Maintaining financial stability is hard enough for some individuals, but unemployment would make it even more difficult. This is why employment insurance comes in handy during unfortunate circumstances. If you get laid off from your job or you have to absent yourself from work because of responsibilities such as caring for a newborn or adopted child, or caring for a seriously ill relative, you can file your claim for employment insurance benefits. However, it's important that you have paid your employment insurance premiums in order for you to be eligible for your benefits. Aside from the employment insurance premium which you have to pay, it's also vital that you file your claims immediately. Delaying the filing of your claims for over four weeks after you lose your work may result in loss of benefits.

The Canada Employment Insurance Commission sets the amount a person and an employer will have to pay for premiums for employment insurance. These employment insurance premiums typically change every year, although the change has a certain limit. There are several factors that the Canada Employment Insurance Commission takes into consideration when setting employment insurance premiums. These factors are as follows:

* The Chief Actuary's report * The principle that employment insurance premiums should be able to generate enough revenue within the year in order to cover all payments expected to made during that same period of time * Public input

The Government of Canada can substitute a different rate through an Order-in-Council for the sake of public interest. However, the limit for changes should still be adhered to. This limit was set in order to ensure the stability of the premium rate and to minimize any negative impact on the business cycle.