Unemployment Insurance - Higher Benefits and Costs

CIM Bulletin, 1971

R. D. Brown

Higher employer costs and increased employee benefits will result from the current sweeping revisions of the unemployment insurance system now receiving consideration before Parliament. The new legislation, the Unemployment Insurance Act, 1971, will substantially increase the unemployment insurance costs of many employers through an increase in the level of employer contributions - generally, employer contributions will go to 1.4 times employee costs - as well as by extending coverage to many classes of employees now exempt. Under the new legislation, executives, technicians, teachers, institutional workers and others will be covered, and eligible for the higher benefits which it provid,es. For the first time, absence from work because of illness or accident may qualify individuals for unemployment insurance benefits.
Keywords: unemployment insurance, Price Waterhouse, Canada, PHASE 2, cent