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Normandin Beaudry

The 2003 social security programs parameters

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There, in black and white

NB Bulletin Vol. 5 N. 10, December 2002

As mentioned in our latest bulletin of December 2002¸ we are pleased to inform you about the latest developments regarding the main parameters of the major social security programs for 2003.

Régime d´assurance maladie du Québec

The current contribution rate will remain unchanged for the year 2003. This rate is set at 4.26% for companies with a total payroll of more than $5 million and at 2.70% for those with a total payroll of less than $1 million and which are eligible for the reduction program. For eligible companies which have a total payroll of more than $1 million but less than $5 million¸ the rate is a function of total payroll and ranges from 2.70% to 4.26% of total payroll according to the following formula:


2.31% plus (0.39% of total payroll divided by $1 million).

Commission de la santé et de la sécurité du travail (CSST)

The maximum earnings for the income replacement benefit will increase from $52¸500 to $53¸500 for the year 2003.

Commission des normes du travail (CNT)

The current contribution rate will remain unchanged for the year 2003¸ and is set at 0.08% of earnings subject to contribution. The earnings subject to contribution will increase from $52¸500 to $53¸500 for 2003.

Since July 1st¸ 2000¸ an additional contribution of 0.12% of earnings subject to contribution must also be paid by employers of the clothing industry governed by a decree.

Employment Insurance (EI)

As mentioned in our previous bulletin¸ the government of Canada announced on November 28¸ 2002¸ a 10-cent Employment Insurance employee premium rate reduction effective January 1st¸ 2003.

The employee premium rate for the upcoming year will be reduced from $2.20 to $2.10 per $100 of insurable employee earnings. For employers¸ the premium rate will be reduced from $3.08 to $2.94¸ namely¸ 1.4 times the employee rate outlined above. The maximum insurable earnings will remain at $39¸000 for 2003.

Employer contributions can be reduced further for employers offering a salary continuation program (SCP) registered with the Employment Insurance Commission. There are four types of SCPs each offering a unique Employment Insurance premium rate reduction.


Type 1: SCP based on the accumulation of paid sick days of at least one day per month and a maximum of at least 75 days.
Type 2: SCP based on the accumulation of paid sick days of at least one day and 2/3 per month and a maximum of at least 125 days.
Type 3: SCP providing a weekly indemnity for at least 15 weeks.
Type 4: SCP providing a weekly indemnity for at least 52 weeks (this reduction is only available to employers of public and para-public sectors of the province of Quebec).

Employer premium rates as of January 1st¸ 2003


 

Type Regular
rate
Reduction
rate¹
Reduced premium
rate for 2003²
Employer
premium factor³
1 $2.94 $0.21 $2.73 1.300
2 $2.94 $0.30 $2.64 1.257
3 $2.94 $0.29 $2.65 1.262
4 $2.94 $0.32 $2.62 1.248

 


¹ Premium rate reduction per $100 of insurable employee earnings.
² Employer premium rate per $100 of insurable employee earnings.
³ Premium factor to be applied to the employee premium rate of $2.10 per $100 of insurable employee earnings.

The reduced premium rates are applicable for one complete year. In the event a plan is registered during the year¸ an adjustment will be applied to the premium rate in proportion with the time of registration.

 

Please feel free to contact us for additional information.

514.285.1122
 
630, René-Lévesque Blvd. West, 30th floor
Montreal, Quebec, H3B 1S6