Disability Insurance Plan premium rates

Monthly Disability Insurance plan premium rates effective July 8, 2020

The Disability Insurance (DI) Plan costs are shared between the plan member and the Government of Canada.

The Government of Canada pays 85% of the premium and the plan member the remaining 15%.

Effective July 8, 2020, the premium rate for the DI Plan is $2.32 for every $1,000 of a plan member’s insured salary. Employees pay 15% of this amount; or $0.35 for every $1,000 of insured salary. The employer pays the remaining 85%; or $1.97 for every $1,000 of insured salary.

To calculate a plan member’s insured salary, round their annual salary up to the next multiple of $250. For example, if a plan member’s annual salary is $44,825 at the end of their elimination period, their insured salary would be $45,000. Based on that total, the plan member’s monthly contribution would be $15.75 and the employer’s monthly contribution would be $88.65.

Premium contributions are normally made by payroll deduction but are waived while a member is receiving disability benefits or when not receiving pay from which to deduct a premium such as during any part of an ’elimination period’.

Elimination period:  The elimination period is a waiting period applied before benefits are paid. Benefits become payable after 13 weeks of disability or when the member’s paid sick leave has expired, whichever date is later.

Monthly Disability Insurance plan premium rates effective February 1, 2013

The Disability Insurance (DI) Plan costs are shared between the plan member and the Government of Canada.

The Government of Canada pays 85% of the premium and the plan member the remaining 15%.

Effective February 1, 2013, the premium rate for the DI Plan is $1.93 for every $1,000 of a plan member’s insured salary. Employees pay 15% of this amount; or $0.29 for every $1000 of insured salary.

Premium contributions are normally made by payroll deduction but are waived while a member is receiving disability benefits or when not receiving pay from which to deduct a premium such as during any part of an ’elimination period’.