The decision to enhance the Canada Pension Plan is good news and bad news for foodservice operators.

The good news is that, for Ontario employers and employees, the deal will effectively kill the Ontario Retirement Pension Plan. The ORPP, which would have added 1.9% to payroll costs in Ontario, was due to begin in 2018 and would have created an additional administrative burden.

Enhanced CPP contributions won’t begin until 2019 and will be phased in over four years.

The bad news is that payroll costs across the country will increase significantly when the plan is fully implemented:

  • Businesses and employees will each pay an additional 1% into CPP;
  • When fully implemented, the CPP rate will be 5.95%.

The Ontario government has requested that the changes be ratified by mid-July. Restaurants Canada is urging governments not to do so until more details are available. Check out Restaurants Canada’s statement on the deal that has been struck, and our media reaction to it.

Restaurants Canada is disappointed that the federal and provincial governments have missed the opportunity to target pension plan reform to those who were identified as most needing support – middle-income earners. A one-size-fits-all approach will increase employers’ costs, reduce take-home pay, and put entry-level jobs at risk.

Restaurants Canada will continue to speak with various levels of government. We will provide an update as the story

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