Employment insurance premiums for workers and employers are going down by about 4%beginning in January.

The Employment Insurance Commission has set the 2006 EI premium rate at $1.87 per $100 of insurable earnings, down from the current $1.95.

Employers will see their premiums fall from $2.73 per $100 of insurable earnings to $2.62.

For Canadians earnings $39,000 or more, the rate cut will save them $31 a year. Employers would save $44.

This is the first time the rate has been set by the EI Commission according to the new rate-setting process introduced in the 2005 federal budget.

The EI chief actuary said the lower rate should generate enough premium revenue in 2006 to cover payouts on a break-even basis.