Posted on: 09-07-07 16:22:03
Thinking about this a little more - there is no way around this issue.
All workers (in US and Canada) have to pay the premium for social services like health care (provincial in Canada and Medicare in US), unemployment (EI in Canada and Employment Insurance in US) and retirement (CPP in Canada, Social Security in the US).
The reason benefits cannot be paid to non-resident workers (in both US and Canada) is not because the Govt. is a group of exploitative, appropriating bunch of robber Barons, but simply because if a non-resident worker stops working, he/she loses his/her status i.e. the right to stay in the country.
Therefore, neither unemployment benefits nor retirement benefits can be paid to such people.
But consider the alternative - do not charge these premiums from the paychecks of non-resident workers.
That sounds nice and fair, however, what happens when a non-resident worker becomes a permanent resident after several years (PR in Canada and GC in US)?
Now, all of a sudden, this person is eligible to get those benefits.
If we had not charged premiums earlier, should the benefits be paid now?
If yes, then it penalised the resident workers unfairly because they have to pay for these folks' benefits now.
If the benefits are not paid, then these people are no better off than they are now.
However, with the system currently in place, once a non-resident worker becomes a permanent resident (or GC), all the contributions they have done are taken into account.
It may seem unfair at first, but it is rational to a large degree.
My $0.02 CAD 
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Hi, I don't in details about any other benefits in US or Canada but since I work for UN (united nations) and our pension plan is from USA, the pension plan has two contributions, employee as well as employer, when a employee leaves and want to quit the pension plan (be on any reasons, short term work or going back to India) the employee contribution is paid back to them but the employer contribution is withheld cause it's only paid after one turns 60. I don't know if it happens universally in US and Canada too. If any of the countries don't pay the employee share at the time of parting (in work permits or short term working conditions) then it’s definitely bitter.
Jona
Pension plan for UN employees is not from USA ...... it is not part of the united states government ..... so UN makes its rules for payment of pension plan as an independent entity ..... it is like a corporate ...... In any case contribution to the pension funds is like taxes ..... u dont get them back ....
Quote:
Originally posted by jonav
Hi, I don't in details about any other benefits in US or Canada but since I work for UN (united nations) and our pension plan is from USA, the pension plan has two contributions, employee as well as employer, when a employee leaves and want to quit the pension plan (be on any reasons, short term work or going back to India) the employee contribution is paid back to them but the employer contribution is withheld cause it's only paid after one turns 60. I don't know if it happens universally in US and Canada too. If any of the countries don't pay the employee share at the time of parting (in work permits or short term working conditions) then it’s definitely bitter.
Jona
Quote:
Originally posted by Maharaj
[Don't pay the Premium if not comfortable ...
If 'not paying' is not an option - better not to buy the Policy.
The main topic of discussion here is EI/CPP premiums and "not to buy a policy" as per your post is not an option here. You have to pay irrespective of ur opinion about it.
Quote:
Originally posted by gurukant
Dear All,
I am new to this forum and have gone thru various topics and I really appreciate time taken by all members to answer queries of new comers.
I will be highly appreciate answer/help on following queries.
I will be traveling to Markham (Ontario) on an assignment for 2 years along with the family (wife & kid). I am offered total salary of 58.5 K per year. So I would like to know:
- if this salary is comparable with in the industry? I will be working as Project Manager in a IT company (got 8+ years of IT exp)
- Approximately how much will be total taxes?
- After 2 years, can I get the amount deducted for EI and CPP?
- What will be monthly expenses including food, travelling, rented accommodation (1 BHK), misc expenses? I am pure vegetarian and will use local transportation for traveling
Thanks in advance and waiting for your early reply as I have to give decision on this offer.
Regards,
Guru
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Hello Gurukant,
Here is a calculator provided by another desi for calcularing the take home pay per month. It will provide you with a clear picture as to what the pay packet per month will be. Use it to your advantage.
http://www.walterharder.ca/Take%20Home%20Pay%20Calculator.html
There are tax shelters that will help you in reducing your pay outs to the governement and how you can recover a few dollars, by investing in the RRSP pripr to the deadline, which is, the last day of February of each year, after you land here. How effective it will be to you, and how you can take advantage of the same will be an exercise in futility as they will charge you again when you pull the same amount out of the shelter. You have to find an expert in this field who has done this same exercise before for other clients in a similar situation.
If you wish to migrate to this country and your employer will help you with a good recommendation, you have ample time to do your filing for a PR Card. You have a very good start unlike the others who are looking for jobs and still pounding the pavement. You have your nose in throuogh the door and have a standing start.
As suggested by one (jonav) if they will provide you with air fares for the whole family, once a year back to India during the PAID vacation, you will be availing best of both worlds, but make sure that they will atleast provide you with airfares in and out of here.
Normally we do not expect any bad things to happen to us. But there are events over which we have no control and if anything happens and your family needs the financial support the company you work for should provide you with a coverage or a policy to cover at least twice the annual salary and if health coverage is provided for the family while you are in the employment, it should continue. Other benefits to look into are the company pension plan or an equivalent amount to you for your personal plan.
Government of Canada will provide a survivor benefit since they are collecting the CPP premia. If your company lays you off work, then EI will cover. OR if it closes down their operations, then you can avail the same. You can ask your employer what the duration will be and the amount that goes with it. Please do ask if you can avail the same after the termination of the contract? If so, do you have to be in Canada to receive the same, or looking for a suitable post?
These are hypothetical questions and we also would like to know the answers.
Education is free here in Canada upto grade 12. You can find the schools near by by googling for the public schools in ontario.
Government of Canada also provides family allowance (allowance for the child) You can see how much you will be getting from their web site with that annual salary.
Your year begining in India is first of April for the taxes. Here it is January first. See what the tax implications are when you enter here in Canada and what they will be if you return to India. See the over lap periods and the reporting requirements.
Find a residence close to the work place to reduce the commuting time. Markham is a vast area, get the maps by googling and the location of your employer. Find comparable rents through craiglist and kijiji and the classified ads here in on the CD.
Some prices for the food items are provided in one of my recent posts and you can approximate the same. Do not cut corners while shopping. Enjoy life to the fullest while you are here. Do travel and see all of the interesting places that you always wanted to see. Make your stay a very pleasant one.
Good Luck and welcome to Canada, the land of opportunities.
Freddie
In india 8 years exp earns around 8+ lakhs..
So it may be a toss of the coin as he could end up saving ths same amount in India or canada
Probably close to 10000-15000$ per year...
Let us know gurukant, the orignal "poster"
Thanks
B
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Bombay State of mind
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