Yesterday afternoon, the Federal Government tabled the 2016 federal budget. Here’s the complete budget.
Here are the highlights for employers:
The budget proposes to amend the rules to reduce the number of hours worked before new entrants and re-entrants are eligible for EI regular benefits. Another change being proposed is that the EI waiting period will be reduced to one week, down from two, effective January 1, 2017.
“We’re looking forward to more details into how this change could potentially impact employers’ payments for scenarios like maternity leave top up,” said Accompass Vice President Tiina Liivet. “In addition, I’m interested in seeing more information from the government about the qualifications for EI premium reduction, and whether short-term disability costs for private plans will be impacted.”
+ Work-sharing agreements also being extended
Canada Pension Plan
In December, the federal government began discussions with provinces about CPP expansion to help Canadians avoid the risk of outliving their savings. Finance Minister Bill Morneau shared his hope to reach a collective decision with the provinces by the end of 2016.
“The timing seems to line up with Ontario’s recent decision to delay contributions to the Ontario Retirement Pension Plan,” Accompass Senior Vice President Mark Dowdell said.
The Advisor will continue to provide updates as they happen, including announcements about CPP expansion and any developments related to the ORPP.
+ Why businesses with Ontario businesses should still plan for ORPP
OAS and GIS benefits
The budget confirms that the age of eligibility for Old Age Security will return to 65, canceling the former government’s original provision to increase OAS and Guaranteed Income Supplement benefits to 67.
+ GIS top-up benefits increasing