Expect salary changes in 2023 due to increased contributions to Canadian pensions and employment insurance.
Between increased payroll deductions for workers and rising costs of living, budgeting will certainly be a top priority for many residents of the Waterloo area this year.
“I’m basically confused,” said Greg Nowak, a resident of the area. “Ridiculous. I thought I’d get a reply from some of these [employers] So far not, and it put some budget constraints on me. ”
This has been the case with a lot of wrestling that has gone up in cost over the last year.
Chris Poole, corporate financial planner at CWP Financial Services Inc., said:
New Year also promises some changes in people’s household finances.
The Canada Revue Agency announced in November that the Canada Pension Plan contribution rate will increase to a maximum of $3,754.45 in 2023.
Employment insurance rates have also changed, with workers paying an annual premium of up to $1,002.45 this year, up from $952.74 last year.
The Canadian Federation of Independent Enterprises said the increase means a reduction of up to $305 in annual take-home wages for all Canadian workers.
“So this is really a savings for ourselves in the future, with future net benefits based on years of service and years of service in Canada,” Poole said.
Another savings tool Poole suggests to combat rising costs is a tax-free savings account, which will increase the contribution limit to $6,500.
“The $6,500 price increase is certainly welcome.
Nowak said he will continue to look for work while doing his best to keep up with rising costs.
“Look for other ways you haven’t thought of to cut some of your spending and generate a little extra income,” he said. maybe.”
