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Normandin Beaudry

The 2008 Social Security Programs Parameters

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There, in black and white

NB Bulletin Vol. 10 N. 16, December 2007

As in previous years, we are pleased to inform you about the parameters that will be used by the major social security programs in 2008.

The Quebec Pension Plan and the Canada Pension Plan

The Year's Maximum Pensionable Earnings (YMPE) for 2008 will be $44,900, an increase of 2.7% over the 2007 YMPE ($43,700). The basic exemption remains at the current level of $3,500, which is the level applicable since January 1st, 1998. Employee and employer contribution rates will remain at 4.95% of contributory earnings in 2008. The annual maximum contribution is $2,049.30. The maximum monthly retirement pension at age 65 is set at $884.58 for 2008, based on the average YMPE over the last five years.

Canada Employment Insurance Commission

On October 29, 2007, the Canada Employment Insurance Commission confirmed a reduction of $0.07 per $100 of insurable employee earnings in the premium rate for employees effective January 1st, 2008. The premium rate for employees in Quebec will therefore be reduced from $1.46 to $1.39. For Quebec employers, the premium rate will be reduced from $2.04 to $1.95, which is 1.4 times the employee rate outlined above. These rates consider the Quebec Parental Insurance Plan (QPIP) in place since January 1st, 2006.

The Employment Insurance premium rates for employees and employers outside Quebec will be reduced respectively from $1.80 to $1.73 and from $2.52 to $2.42 per $100 of insurable employee earnings. The maximum insurable earnings will increase from $40,000 to $41,100 for 2008.

Employer contributions can be further reduced for those 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 indemnity1 for at least 15 weeks.

Type 4: SCP providing a weekly indemnity1 for at least 52 weeks (this reduction is only available to employers of public and para-public sectors).
 
 

Quebec Parental Insurance Plan (QPIP)

The QPIP contribution rates for the year 2008 per $100 of insurable income will be $0.45 for employees, $0.63 for employers and $0.80 for self-employed workers. The maximum insurable income will increase from $59,000 to $60,500 for 2008.

Régime d'assurance maladie du Québec

The current contribution rate will remain unchanged for 2008. This rate is set at 4.26% of total payroll for certain public-sector employers and for companies with a total payroll of more than $5 million. For companies with a total payroll of less than $1 million, the rate is set at 2.70% of total payroll. For 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:
 
 

Commission de la santé et de la sécurité du travail

The contribution rate to the Commission de la santé et de la sécurité du travail is determined according to the type of industry and, if applicable, to the claims experience. The maximum earnings for the income replacement benefit will increase from $59,000 to $60,500 for 2008.

Commission des normes du travail

The current contribution rate will remain unchanged for 2008, and is set at 0.08% of earnings subject to contribution. The earnings subject to contribution will increase from $59,000 to $60,500 for 2008.


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1 The SCP weekly indemnity must be at least equal to the benefits provided by the Employment Insurance.

 

Please feel free to contact us for additional information.

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