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Human Resources and Skills Development Canada

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2012 INSURABLE EARNINGS MAXIMUM INSURABLE EARNINGS (MIE)

Section 4 of the EI Act states that the annual MIE, the income level up to which EI premiums are contributed, will be set at $39,000, beginning in 1996, until this threshold is surpassed by the amount calculated based on the growth in the twelve month average of the monthly Average Weekly Earnings (“AWE”), as reported by Statistics Canada, for the period ending June 30 in the preceding year.

In 2007, the calculated amount was $40,041.56, the first time the $39,000 threshold had been exceeded. The MIE was set equal to $40,000, the nearest multiple of $100 for the calculated amount.

2012 Maximum Insurable Earnings Formula

The unrounded MIE for 2012 is equal to the unrounded MIE from 2011 ($44,259.17) multiplied by the average of the AWE for each month for the twelve month period ending June 30, 2011 ($866.91) divided by the average of the AWE for each month for the twelve month period ending June 30, 2010 ($835.89).

Rounded down to the nearest multiple of $100, the MIE is $45,900 for 2012. This is an increase of $1,700 or 3.8% from the 2011 MIE of $44,200.

MAXIMUM INSURABLE EARNINGS 1
Year 12-month AWE as of June 30
Two-Years Previous		 12-month AWE as of June 30
Previous Year		 Calculated MIE (unrounded) MIE rounded down to nearest $100 % change
2006 $698.33 $713.38 $37,897.08 $39,000 -
2007 $713.87 $741.41 $40,041.56 $40,000 2.60%
2008 $738.13 $758.45 $41,143.87 $41,100 2.80%
2009 $758.53 $781.58 $42,394.37 $42,300 2.90%
2010 $800.37 $816.88 $43,268.88 $43,200 2.10%
2011 $816.88 $835.58 $44,259.17 $44,200 2.30%
2012 $835.89 $866.91 $45,901.69 $45,900 3.80%

1The 12-month AWE average may not correspond to the latest Statistics Canada published figures since historical data is regularly adjusted retroactively.

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Date Modified:
2011-11-15