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Workforce: Statutory Benefits

Costs: Average Wages, All Industries Wages by Occupation Wages by Manufacturing Minimum Wages by Province Statutory Benefits Workers Compensation Health & Social Services

Canada Pension Plan

All employees are required to contribute to the Canada Pension Plan (CPP) to an annual maximum.  The employer must match this contribution.  For 2009, the basic criteria are:

Contribution Rate

4.95%

Maximum Pensionable Earnings

$46,300.00

Basic Exemption

$3,500.00

Maximum Earnings on which Contributions are based

$42,800.00

Maximum Employee Contribution

$2,118.60

Maximum Employer Contribution

$2,118.60

Deductions are made from each pay cheque at the prescribed rate throughout the year or until such time as the maximum has been reached. Normally, tables provided by the government are used to determine the amount to be deducted; deductions can, of course, be calculated. Deductions and employer contributions are remitted to the government monthly.

Employment Insurance

All employees are required to pay employment insurance premiums based on earnings to a maximum insurable earnings level, provided they meet minimum earnings levels.  Employers are required to make contributions based on the employees’ premiums.  Deductions and employer contributions are remitted to the government monthly.  For 2009 the rates are:

Employee Premium Rate:

            1.73%

Employer Premium Rate:

1.4 times employee premium

Maximum Annual Insurable earnings:

$42,300.00

Maximum Annual Employee Premium:

$731.79

Maximum Annual Employer Premium:

$1,024.51

Source: Canada Revenue Agency

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