CEIC and CRA 2017 MIE and MPE changes
Canada Employment Insurance Commission and Canada Revenue Agency announce 2017 changes to Maximum Insurable Earnings and Maximum Pensionable Earnings.
The Canada Employment Insurance Commission announced the Maximum Insurable Earnings (MIE) for 2017 will increase to $51,300.00 from $50,800.00.
The MIE is indexed on an annual basis and represents the ceiling up to which Employment Insurance premiums are collected. The MIE is the maximum amount considered in applications for EI benefits. Under the Employment Insurance Act, the MIE increases with average wages to ensure that as workers' wages rise, the EI program provides a consistent level of income protection.
The Canada Revenue Agency also announced the Maximum Pensionable Earnings (MPE) under the Canada Pension Plan for 2017 will be $55,300.00, up from $54,900.00 in 2016.
The MPE is calculated according to a legislated formula that takes into account the growth in average weekly wages and salaries in Canada. The basic exemption amount for 2017 will remain at $3,500. The employee and employer contribution rates for 2017 will remain unchanged at 4.95%. The maximum employer and employee contribution to the plan for 2017 will be $2564.10, up from $2,544.30 in 2016.
Manulife Group Benefits is updating its administrative processes and systems to support the changes.