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

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Cases have gone up in Northern Health in the past week, as they have all over B.C. (K-J Millar/Black Press Media)
Northern Health reports new highest number of COVID-19 cases in one day

Nineteen cases were reported to Public Health last Tuesday (Nov. 17)

New COVID-19 restrictions forced the cancellation of the in-person portion of the second annual Festival of Trees event scheduled for Nov. 20 -21 in Terrace. (Pexels)
In-person event cancelled, online auction still a go for Terrace’s Festival of Trees

Dr. R.E.M. Lee Hospital Foundation was planning to host the event at Heritage Park

FILE – British Columbia provincial health officer Dr. Bonnie Henry wears a face mask as she views the Murals of Gratitude exhibition in Vancouver, on Friday, July 3, 2020. THE CANADIAN PRESS/Darryl Dyck
Masks now mandatory in all public indoor and retail spaces in B.C.

Many retailers and businesses had voiced their frustration with a lack of mask mandate before

(Photo courtesy of LNG Canada)
An aerial shot of Cedar Valley Lodge this past August, LNG Canada’s newest accommodation for workers. This is where several employees are isolating after a COVID-19 outbreak was declared Thursday.
COVID-19 outbreak at LNG Canada Project site

14 employees have tested positive for COVID-19 at this time

Bob Wilson uses a garden hose to protect a wood shed as his daughter’s home burns nearby on Oct. 7, 2020. (Photo courtesy Natasha Candelora)
Foster family loses Old Remo home to fire

B.C. ministry unhelpful in aftermath of fire, family says

Kyle Charles poses for a photo in Edmonton on Friday, Nov. 20, 2020. Marvel Entertainment, the biggest comic book publisher in the world, hired the 34-year-old First Nations illustrator as one of the artists involved in Marvel Voice: Indigenous Voices #1 in August. THE CANADIAN PRESS/Jason Franson
VIDEO: Indigenous illustrator of new Marvel comic hopes Aboriginal women feel inspired

Kyle Charles says Indigenous women around the world have reached out

Prime Minister Justin Trudeau speak to the media about the COVID-19 virus outside Rideau Cottage in Ottawa, Friday, Nov. 20, 2020. THE CANADIAN PRESS/Adrian Wyld
Long-awaited federal rent subsidy program for businesses hurt by COVID-19 opens today

The new program will cover up to 65 per cent of rent or commercial mortgage interest

An Oceana Canada audit of Canadian fish stocks reveals a growing number with critical populations, calling on Fisheries and Oceans Canada to enact existing commitments. (File photo)
B.C.’s declining fisheries the result of poor DFO management: audit

Oceana Canada calls for follow through on government commitments

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Randy Bell. (File photo)
Former northern B.C. mayoral candidate arrested after allegedly refusing to wear mask

Randy Bell handcuffed and given a warning at Bulkley Valley Credit Union in Smithers

James Corden on the Late Late Show talking about BC Ferries on Wednesday, Nov. 18, 2020. (Screenshot)
‘You’ll see it when you see it’: BC Ferries mask graphic gains James Corden’s attention

Turns out, James Corden fans were just as quick as B.C. social media users to pick up on the dual imagery

Most Read