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OTTAWA (Reuters) - Canadian Finance Minister Jim Flaherty said on Thursday the government will limit increases in employment insurance premiums to avoid derailing economic recovery.
Increases in employment insurance premiums will be limited to 5 Canadian cents per C$100 of insurable earnings, while increases in subsequent years will be limited to 10 Canadian cents per C$100 of insurable earnings.
"These new limits strike an optimal balance between supporting economic recovery and ensuring that the EI program breaks even over time," Flaherty said.
The finance minister said the changes will amount to C$1.2 billion in savings for workers and employers compared with what they would have paid if recommendations for increases been implemented in full.
Reporting by David Ljunggren, writing by Jennifer Kwan; editing by Peter Galloway