The maximum insurable earnings an insured worker will pay Employment Insurance (EI) premiums on have increased from $44,200 to $45,900 effective Jan. 1, 2012.
The employee EI premium rate has also increased, to $1.83 per $100.
This means the maximum annual premium in 2012 will be $839.97, an increase of $53.21 from the 2011 maximum of $786.76.
However, unemployed workers with new claims in 2012 will see an increase in the maximum weekly EI benefit rates, which have increased from $468 to $485 per week.
Kamloops-Thompson-Cariboo MP Cathy McLeod says the EI program is intended to be self-sustainable, but these premium increases are lower than necessary to do that, in order for government to support small businesses.
"In actual fact, the government this year chose not to increase the amount by the level that it should have, to be completely self-funding, and that was because we recognize the challenge the employers have right now."
Vern Peever, branch manager at Investment Planning Counsel Inc. - South Cariboo Financial Group in 100 Mile House, says it is common knowledge the EI fund has been running a surplus for a "very long time" and, therefore, benefits could have been adjusted without these increases.
"As a business person, it is disappointing government continues to use EI like an alternative tax system. They are using this program as a way to dig not just into the pocket of business, but of every employed Canadian who will also pay more, as both parties share the cost."
The new generation will bear the brunt, he adds, because as government deals with rising health-care costs, it will continue to "punish" hard-working, middle-class people and small business.
"Government rants on about how they've cut taxes, and that British Columbia is one of the lowest taxed provinces in Canada, but over my working career, the costs for CPP [Canada Pension Plan] and EI have increased by 200 to 300 per cent."
Liberal Leader Bob Rae says this will be the second consecutive year the Conservatives have hiked EI premiums, leaving the average worker paying almost $100 more this year than in 2010.
"Unlike the Conservatives, the previous Liberal government lowered EI premiums 12 years in a row saving workers and their employers $59 billion over that time.
"As Canadian households face record levels of personal debt, it makes no sense to take even more money out of the monthly family budget with yet another EI tax hike."
On top of that, he adds many employers will pay up to $130 more for each person they keep on staff.
However, McLeod says the Liberal MPs are being "a little hypocritical" on this issue.
"[The Liberals] have many policies that increase taxes and the burden on not only employers ... they voted in favour of private members' bills that would create an astronomical cost to the EI system in terms of the benefits system."
She explains the Conservative government has also offered a hiring credit for employers bringing on new staff to offset the EI rates to help businesses.
"We actually have made some positive changes for employers and employees on this file."
Kamloops-Thompson-Cariboo Liberal Riding Association president Diane McLeod says she agrees with Rae's statement.
"The average Canadian is losing ground in terms of providing a reasonably comfortable standard of living for his or her family, and this EI increase is just another discouraging setback.
"This government needs to stop expecting hard-working Canadians to compensate it for its excessive and unnecessary over-spending in the last six years."