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Temporary EI measure for long-tenured workers to cost $853M: PBO
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News – Investment Executive
The temporary measure boosts the maximum period for EI benefits to 65 weeks.
The cost of additional benefits will be $126 million in the 2025–26 fiscal year.
EI is taxable however, and the PBO expects the government to recover $176 million.
As the EI contribution rate is set to balance the operating account over a seven-year period, the PBO estimated that the EI premium increase will be less than 1 cent per $100 of insurable earnings.
The PBO made the estimates using historical claims data and applied a 2.5% annual growth rate to average weekly benefits paid.