The EI premium rate has declined each year from $3.07 in 1994 to $2.10 in 2003. The proposed rate of $1.98 for 2004 would be the 10th consecutive reduction in EI premiums since 1994 (see Table 7.1). Thus, over the 10-year period from 1994 to 2004, the EI premium rate will have been reduced by over a third. These reductions in the EI premium rate will result in ongoing annual savings to employers and employees of $9.7 billion in 2004, compared to the 1994 rate.

Table 7.1
Evolution of Employment Insurance Premiums Since 1994
--------------------------------------------------------------------------------
Premium rate per $100 of insurable earnings
Year Employee Employer
--------------------------------------------------------------------------------

1994 3.07 4.30
1995 3.00 4.20
1996 2.95 4.13
1997 2.90 4.06
1998 2.70 3.78
1999 2.55 3.57
2000 2.40 3.36
2001 2.25 3.15
2002 2.20 3.08
2003 2.10 2.94
2004 1.98 2.77