Canada Pension Plan (CPP)
You pay 5.95% of earnings between $3,500 and $74,600 (the Year's Maximum Pensionable Earnings). The most you can pay in 2026 is $4,230.45. Your employer matches it.
CPP2 (second additional contribution)
On earnings between $74,600 and $85,000, you pay another 4%, up to $416.00. CPP2 is fully deductible from taxable income, so its real cost is lower.
Employment Insurance (EI)
1.63% of insurable earnings up to $68,900, so at most $1,123.07 in 2026. In Quebec the rate is 1.30% because Quebec runs its own parental insurance plan.
What you pay at different salaries
| Salary | CPP | CPP2 | EI | Total |
|---|---|---|---|---|
| $40,000 | $2,171.75 | $0.00 | $652.00 | $2,823.75 |
| $60,000 | $3,361.75 | $0.00 | $978.00 | $4,339.75 |
| $80,000 | $4,230.45 | $216.00 | $1,123.07 | $5,569.52 |
| $100,000 | $4,230.45 | $416.00 | $1,123.07 | $5,769.52 |
Once you hit the maximums, often in the autumn for higher earners, your paycheque gets bigger for the rest of the year. Our Canada calculator shows the yearly average.
Frequently asked questions
Do CPP and EI reduce my income tax?
Partly. The base 4.95% of CPP and all of EI give a tax credit at the lowest rate; the enhanced 1% of CPP and all of CPP2 are deducted from taxable income.
Can I get CPP or EI refunded?
Only if you overpaid, for example by working two jobs that each deducted the maximum. The excess comes back when you file your tax return.
Written by Muhammad Raza. Last updated October 14, 2026.