After a delay, on Wednesday Federal Finance Minister Bill Morneau unveiled a largely status quo budget as the Liberal government attempts to prepare for policy changes in the U.S.
Among the announcements that could impact employers were an option for parents to receive EI parental benefits over an extended period of up to 18 months at a lower benefit rate of 33 per cent of average weekly earnings. EI parental benefits would continue to be available at the existing benefit rate of 55 per cent over a period of up to 12 months.
For employers, a review of maternity and parental top up policies would make sense as the extended period at the lower rate could have an impact on the top up amounts. Employer costs for these leaves could increase as a result of this change.
Canadians can expect to see a five-cent increase in EI premium rates in fiscal 2018 -19, up to $1.68 per $100 of insurable earnings, with some of that additional premium being used to fund expanded access to benefits.
In addition, as anticipated, Wednesday’s budget did not include a tax on employer-sponsored health and dental benefit premium.
As expected, the Liberals also announced that it would be phasing out the Canada Savings Bond program.