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In order to discern the hourly rate of CPP contribution for our
living wage earner, we must
divide the yearly contribution of $924.21 by 1820 hours (or 35
hour work week multiplied by 52
weeks per year). Our hourly CPP contribution is $0.51.
An employee earning a living wage will pay $0.51 an hour to
CPP.
Employment Insurance Contribution (EI)
As of January 1st
, 2009, everyone must pay EI premiums on all earnings up to the
annual
maximum salary of $42,300. The EI premium rate is set to $1.73
for every $100 of salary. Our
living wage of $22,171 must first be divided by $100, and then
multiplied by $1.73.
22,171.00
100.00
221.71
x 1.73
383.54
We must also define what an hourly EI contribution would be for
our living wage earner.
Therefore, we must divide the yearly contribution of $383.54 by
1820 hours. Our hourly EI
contribution is $0.21.
An employee earning a living wage will pay $0.21 an hour to
EI.
Insurance benefits
To calculate our living wage earners allowable insurance
benefits, we must look at Canadasleading insurance providers basic
insurance packages and found the average hourly
contribution.
Sunlife Financial
For a person between the ages of 30-44 with no dependants,
living in Ontario, the
monthly cost is $58.52 for a basic plan. We must divide this
monthly cost by 140 (or 35
hour work week multiplied by 4 weeks). The hourly insurance
benefit premium is $0.42.
Manulife Financial
For a person of 40 years of age, with no dependants, living in
Ontario, the monthly cost
is $62.00 for a starter plan. We must divide this monthly cost
by 140 (or 35 hour work
week multiplied by 4 weeks). The hourly insurance benefit
premium is $0.44.
Great West Life
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For a person of 40 years of age, with no dependants, living in
Ontario, the monthly cost
is $62.05 for a starter plan. We must divide this monthly cost
by 140 (or 35 hour work
week multiplied by 4 weeks). The hourly insurance benefit
premium is $0.44.
Therefore if we calculate the average of the three leading
insurance benefit providers in
Canada, our living wage earner of approximately 40 years of age
would have to pay anadditional $0.43 per hour for basic insurance
coverage.
An employee earning a living wage would have to pay $0.43 per
hour for basic insurance
coverage.
Grand Calculation of a our Living Wage Premium
0.11 OHP
0.51 CPP
0.21 EI+ 0.43 Basic Insurance Coverage
$1.26
Our Living Wage Premium is $1.25
