CPP, EI hikes hitting Canadian paycheques
Payroll deductions rise, income taxes increase for some
CBC News
Posted: Jan 1, 2013 10:25 AM ET
Last Updated: Jan 2, 2013 7:35 AM ET
Working Canadians can expect a hit to the wallet as they welcome in 2013, mostly in the form of higher payroll deductions.
Besides the bills many people will face from holiday shopping, there will be increases to Canada Pension Plan and Employment Insurance premiums.
Canadians earning at least $47,400 will pay $891.12 in EI premiums this year, up $51.50. Employers will pay $1,247.57 per employee, an increase of $71.61.
For anybody earning at least $51,100, Canada Pension Plan contributions are going up $49.50 to $2,356.20, with the employer’s share jumping the same amount.
CPP benefits will increase by 1.8 per cent for those already receiving them.
The maximum CPP retirement benefit for new recipients will increase from $986.67 to $1,012.50 per month. This increase is calculated on the average yearly maximum pensionable earnings for the last five years.
In British Columbia, workers will be hit with higher payroll health tax hikes for the fourth consecutive year.
The increased Medical Services Premium in B.C. means an individual making over $30,000 will have to pay $66.50, up from $64.
A family of three or more will end up paying $133 a month, up from $128, and the rate for two-person famlies will increase from $116 to $120.50
In Ontario, the new year means the top tax rate for the biggest earners in the province — those earning more than $500,000 — will increase by just under two percentage points from last year.
Elsewhere, a greater number of taxpayers in Nova Scotia, Prince Edward Island and Manitoba will enter higher tax brackets and therefore be subject to more income tax.
An extra income tax bracket will be added in Quebec, along with a higher rate of health tax for the wealthiest and greater contribution rates for the province’s pension plan and its parental benefits plan.
Quebecers will also be hit with increases in the so-called "sin taxes" on alcohol and tobacco.
With files from The Canadian PressShare Tools
Top News Headlines
- Neil Macdonald: Harper no Obama when it comes to dealing with scandals
- Beset by three so-called scandals at the moment, Barack Obama has been meeting his accusers and the press head on, Neil Macdonald writes. The same cannot be said for how Stephen Harper operates. more »
- Court freezes assets in widening SNC-Lavalin probe
- The RCMP are moving to freeze millions of dollars in bank accounts and real estate holdings in Montreal and Florida in their expanding probe into Canadian engineering firm SNC-Lavalin. more »
- Needed: New approaches to defuse 'suicide contagion' among teens
- Mental health experts say we need to find new ways to refer to and discuss suicide, particularly now that a large medical study has confirmed that teens are more susceptible to the idea if they know a schoolmate who died that way. more »
- 2nd suspect in Tim Bosma case in court today on murder charge
- A second man arrested in the death of Tim Bosma, a Hamilton father who disappeared after taking two men on a test drive, is due in court today to face a charge of first-degree murder. more »
Must Watch
Latest Canada News Headlines
- Court freezes assets in widening SNC-Lavalin probe
- The RCMP are moving to freeze millions of dollars in bank accounts and real estate holdings in Montreal and Florida in their expanding probe into Canadian engineering firm SNC-Lavalin. more »
- Needed: New approaches to defuse 'suicide contagion' among teens
- Mental health experts say we need to find new ways to refer to and discuss suicide, particularly now that a large medical study has confirmed that teens are more susceptible to the idea if they know a schoolmate who died that way. more »
- Neil Macdonald: Harper no Obama when it comes to dealing with scandals
- Beset by three so-called scandals at the moment, Barack Obama has been meeting his accusers and the press head on, Neil Macdonald writes. The same cannot be said for how Stephen Harper operates. more »
- Guilty pleas expected today in Nova Scotia chained-teen case
- A man accused of chaining up a teen and sexually assaulting him last fall is expected to enter guilty pleas in a Bridgewater, N.S., courtroom this morning. more »
The National
The Current
- Director James Cameron on deep-sea exploration May. 22, 2013 3:36 PM Film director and deep sea explorer James Cameron on piloting submarines, finding new species and experiencing mechanical trouble 11 kilometres under water.
- 2nd suspect named in Tim Bosma slaying
- Killing near London barracks probed as 'terror' act
- Senators' Alfredsson on defeating Penguins: 'Probably not'
- Rob Ford fired as Don Bosco Eagles football coach
- Harper 'not consulted' about Duffy Senate expense repayment
- 1.3 million Montrealers face boil water advisory
- Xbox One: A closer look
- Plumber's car explodes near Vancouver apartments
- 'You will see him again in heaven,' Sharlene Bosma tells daughter
