Certified Human Resource Professional (CHRP) Practice Exam

Which of the following is mandatory and contributed to by employers?

1. Employee pension plan

2. Employment insurance

3. Healthcare spending accounts

4. Employees life insurance

The correct answer is: Employment insurance

The choice reflecting a mandatory contribution from employers is employment insurance. Employment insurance (EI) is a program in various countries designed to provide temporary financial assistance to workers who have lost their job through no fault of their own. Employers are required by law to contribute to this program on behalf of their employees, and these contributions are a percentage of the employee's insurable earnings. This requirement is rooted in legislation that aims to provide a safety net for individuals facing unemployment, ensuring they have some income support while they seek new job opportunities. The structure of EI is such that employees also contribute a portion of their earnings, but the employer's participation is mandatory and ensures the program remains funded and effective. In contrast, employee pension plans, healthcare spending accounts, and employee life insurance are typically not required by law. While many employers offer these benefits to attract and retain talent, they are not compulsory, and their contributions can vary widely across organizations and industries. This differentiates them from employment insurance, which is standardized and regulated by government policies.