Of course you realize this is for 2019, the numbers have changed for 2020 and you can read about them here!
For a lot of folks, they are just deductions that appear on every pay stub. For folks who make more, this deduction disappears some time in the year, and after that, they get a “virtual raise” given they do not have to pay these deductions for the rest of the year.
It is easy to approximate how much someone makes, by knowing when they stop paying EI premiums.
It’s actually a pretty simple game to play and well worth a couple of minutes time to create a little model to figure this thing out.
Meet Jill for 2019
Jill gets paid bi-weekly, lives in Ontario and works as an employee of private firm NUJAC. She gets paid a regular salary (assuming no bonuses ), so if we list the month in which Jill tells us “I stopped paying EI premiums in August” we can then approximate how much Jill actually makes in salary.
We learn from the EI web site that the 2019 premium is 1.62% of insurable earnings (and the maximum insurable earnings is $53,100 in 2019).
|EI Rate||1.62%||Max income||$ 53,100.00|
|CPP Rate||5.10%||Max income||$ 53,900.00|
|Approx Gross |
|Per Pay EI||Per Pay CPP|
So Jill makes about $76,000 a year.