Canada Pension Plan (CPP)
| 2026 | |
|---|---|
| Basic exemption | $3,500 |
| Maximum pensionable earnings (YMPE) | $74,600 |
| Employee and employer rate | 5.95% each |
| Maximum employee contribution | $4,230 |
Your employer matches your contribution. Self-employed people pay both halves (11.9%).
Second CPP contribution (CPP2)
Since 2024, earnings between the YMPE ($74,600) and the YAMPE ($85,000) have an extra contribution of 4%, up to $416 a year. It increases the retirement pension you will receive.
Employment Insurance (EI)
EI premiums are 1.63% of insurable earnings up to $68,900, a maximum of $1,123. Employers pay 1.4 times the employee premium. EI funds benefits for job loss, sickness, maternity, parental and caregiving leave.
Quebec: QPP and QPIP
Quebec workers contribute to the Quebec Pension Plan at 6.3% instead of the CPP. Quebec also runs its own parental insurance plan (QPIP, 0.43%), so its EI rate is lower (1.3%).
Contributions on common salaries
| Salary | CPP (Ontario) | EI (Ontario) | QPP (Quebec) | EI + QPIP (Quebec) |
|---|---|---|---|---|
| $30,000 | $1,577 | $489 | $1,670 | $519 |
| $40,000 | $2,172 | $652 | $2,300 | $692 |
| $50,000 | $2,767 | $815 | $2,930 | $865 |
| $60,000 | $3,362 | $978 | $3,560 | $1,038 |
| $70,000 | $3,957 | $1,123 | $4,190 | $1,197 |
| $80,000 | $4,446 | $1,123 | $4,695 | $1,240 |
| $90,000 | $4,646 | $1,123 | $4,895 | $1,283 |
| $100,000 | $4,646 | $1,123 | $4,895 | $1,326 |
Are CPP and EI tax-deductible?
Yes, in part. The base CPP contribution and EI premiums give you a non-refundable tax credit, while the enhanced CPP and CPP2 contributions are deducted from your taxable income.
Why your paycheque grows later in the year
Once your earnings for the year reach the maximums, CPP and EI deductions stop. On a $120,000 salary paid monthly, EI stops around month 7 and CPP2 around month 9, so your net pay rises for the rest of the year. Deductions restart in January.
Overpaid CPP or EI
If you had two or more employers, each one deducts CPP and EI separately, so you may contribute more than the annual maximum. The excess is refunded when you file your tax return.
Self-employed contributions
Self-employed people pay both the employee and employer CPP contributions (11.9% and 8% for CPP2) through their tax return. EI is optional for the self-employed and only covers special benefits.
Frequently asked questions
What is the CPP maximum for 2026?
$4,230 for the regular CPP plus up to $416 of CPP2.
What is the maximum EI premium for 2026?
$1,123 outside Quebec.
When do CPP deductions stop?
Once your year-to-date earnings reach the YAMPE ($85,000), CPP and CPP2 deductions stop until January.
Do I get overpaid CPP back?
Yes. Contributions above the annual maximum, usually because of several employers, are refunded on your tax return.
Do self-employed people pay EI?
Only if they opt in, and then only for special benefits such as parental or sickness benefits.
Figures use CRA and Revenu Québec 2026 federal and provincial brackets, basic personal amounts, CPP/QPP, EI and QPIP rates for an employee. Read our methodology. Last updated September 25, 2026. Estimates for information only, not tax advice.