2016 Social Security Programs ParametersLinkedIn
NB Bulletin Vol. 19 N. 1, January 2016
As in previous years, we inform you about the parameters that will be used by the major social security programs in 2016.
Quebec Pension Plan and Canada Pension Plan
The Employment Insurance premium rate for employees in Quebec decreases by $0.02 per $100 of insurable employee earnings effective January 1st, 2016. The premium rate for employees in Quebec therefore decreases from $1.54 to $1.52. As for employers, they continue to contribute 1.4 times the employee rate so their premium rate will move down from approximately $2.16 to $2.13. These rates consider the Quebec Parental Insurance Plan (QPIP) in place since January 1st, 2006.
The Employment Insurance premium rate for employees outside Quebec remains at $1.88 per $100 of insurable employee earnings for 2016 and the employers continue to contribute 1.4 times the employee rate, for a premium rate of approximately $2.63 per $100 of insurable employee earnings.
The maximum insurable earnings increases from $49,500 to $50,800 for 2016.
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.
Employer Premium Rates as of January 1st, 2016 (1)
Quebec Parental Insurance Plan (QPIP)
The QPIP contribution rates have decreased in 2016, moving down from 0.559% to 0.548% for employees, from 0.782% to 0.767% for employers and from 0.993% to 0.973% for self-employed workers. The maximum insurable income increases from $70,000 to $71,500 for 2016.
Health Services Fund Contribution
The current contribution rate remains unchanged for 2016. 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:
Note that some employers of the primary sector and the manufacturing sector are now eligible to a reduced contribution rate.
Commission des normes, de l'équité, de la santé et de la sécurité du travail
The current contribution rate remains unchanged for 2016, and is set at 0.08% of insurable earnings. The maximum insurable earnings subject to contribution increases from $70,000 to $71,500 for 2016.
1The SCP weekly indemnity must be at least equal to the benefits provided by the Employment Insurance.