Employment Insurance rates will be reduced in the upcoming year.
The rate is dropping from $1.62 to $1.58 per $100 of employment earnings. The maximum insurable earnings will be increasing from $53,100 to $54,200.
The maximum that an employer will have to pay for their employee will decrease slightly, from $1,204.31 to $1,198.90.
On the other hand, Canada Pension Plan premiums will be increasing in 2020.
This will be the second year of scheduled increases to Canada Pension Plan premiums. The premium rate in 2020 will be increasing from 5.10% to 5.25%. The maximum pensionable earnings will be increasing from $57,400 to $58,700.
For self employed individuals, the premium rate will be increasing from 10.20% to 10.50%.
As a result of these changes, the maximum contribution in 2020 will be $2,898 for an employee, and $5,796 for a self employed individual.