Important notice on Pay Equity, Income Tax and Employment Insurance

As with any other interest payment such as bonds, Guaranteed Investment Certificates or other investments; your pay equity interest payment will not have any income tax deductions taken at source. However, the interest payment is taxable and forms part of the taxable income for the year in which the payment is received. Consequently, we urge you to seek advice from your financial institution to minimize the tax impact.

Important issue on Pay Equity and Employment Insurance

As a result of the pay equity salary increases made to current and former employees of the federal government, secondary payments will be issued to adjust past separation pay and pension amounts.

If in the last six years you collected Employment Insurance (EI) benefits and you received or will receive an adjustment to your separation payments or an adjustment to your monthly pension payments, this payment may have an affect on any EI benefits you received in the past or are now receiving.

We urge you to please contact your local HRDC office as soon as possible so that we can make any necessary adjustment to your file.