2022 Payroll Rate Updates
Welcome to 2022!
Every year, rates change for the various components of your paycheque. Here is a summary of the changes:
|Benefit:||2021 Rate:||2022 Rate:|
|EI Max Employee:||$ 889.54||$ 952.74|
|CPP Max||$ 3,166.45||$ 3,499.80|
Why CPP premiums are going up
The increase is part of a multi-year plan approved by provinces and the federal government five years ago to boost retirement benefits through the public plan by increasing contributions over time. The increases started in 2019.
A KPMG note in November said the maximum employer and employee contributions will hit $3,499 each in 2022, an increase from $3,166 this year.
The CPP is a self-financed plan, funded by employer and employees. Contributions are used exclusively to provide benefits within the CPP program.
A spokesperson for the Department of Finance says this CPP enhancement is raising the maximum CPP retirement pension for Canadian workers by 50 per cent over time and that young Canadians just entering the workforce will see the largest increase in retirement benefits.
Worksafe BC Premiums Up for Social Services
WorkSafeBC premiums are updated annually and are based on injuries for the past three years. In 2021, WorkSafeBC limited our sector’s base premium rate to 2. 74% of assessable payroll. The rate needed to cover the costs of our sector’s injuries and prevention activities in 2022 is 5.41%, but they are again limiting the increase for 2022 to 3.29%. We can expect another increase in 2023.
Spectrum’s experience is better than average and we have a 3.4% discount on the sector rate. Thank you to everyone for following safe work practices.
New Rates for Municipal Pension Plan in 2022
MPP rates are updated once every three years. The rate structure has been changed for a number of reasons:
- reflect the changing nature of work and retirement,
- better align benefits with how the majority of employees are using them, and
- rebalance contribution rates with accrual rates.
Health and Dental Rates will be updated effective April 1, 2022
We will find out soon how our health and dental rates will change in April 2022. Rates change based on utilization of benefits and the average increase in costs of services.