Dan Kelly, President of the Canadian Federation of Independent Business (CFIB) speaks in Toronto on Thursday, September 11 2014. he Canadian Federation of Independent Business has asked the federal government to hold Canada Pension Plan premiums at current levels next year when they’re scheduled to rise. THE CANADIAN PRESS/Chris Young

Dan Kelly, President of the Canadian Federation of Independent Business (CFIB) speaks in Toronto on Thursday, September 11 2014. he Canadian Federation of Independent Business has asked the federal government to hold Canada Pension Plan premiums at current levels next year when they’re scheduled to rise. THE CANADIAN PRESS/Chris Young

CFIB calls for freeze on Canada Pension Plan premiums set to rise on Jan. 1

CFIB says employees could see their take-home pay fall when their CPP premiums go up

The Canadian Federation of Independent Business has asked the federal government to hold Canada Pension Plan premiums at current levels next year when they’re scheduled to rise.

The national lobby group for small and mid-sized businesses says that higher CPP rates will be a financial burden to both employers and employees as they struggle with the pandemic.

The CFIB estimates that one-third of small businesses are currently losing money during the pandemic and higher payroll taxes will limit their ability to hire and pay employees.

CFIB says employees could see their take-home pay fall when their CPP premiums go up.

The CFIB has long opposed a federal and provincial agreement to gradually raise CPP premiums over several years to improve retirement benefits for employees over the long term.

CFIB President Dan Kelly says higher mandatory expenses like pension premiums are hard for small businesses any year and will be even harder in 2021 because of COVID-19.

“Let’s not forget that the premium hike hits employees too, ensuring that every working Canadian will see a drop in their take-home income unless their employer is able to give them a larger raise on Jan. 1,” Kelly said in a statement.

The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Coronaviruseconomy

Be Among The First To Know

Sign up for a free account today, and receive top headlines in you inbox Monday to Saturday.

Sign Up with google Sign Up with facebook

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Reset your password

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

A link has been emailed to you - check your inbox.



Don't have an account? Click here to sign up
Pop-up banner image