What are they for?
CPP (Canada Pension Plan) builds your government pension for when you retire.
EI (Employment Insurance) pays you if you lose your job, or take parental, sickness or caregiving leave.
Your employer pays into both for you too, on top of your pay. And you get some of your CPP and EI back through lower income tax.
How much do I pay?
| Deduction | Rate | On earnings | Most you pay in a year |
|---|---|---|---|
| CPP | 5.95% | $3,500 to $74,600 | $4,230.45 |
| CPP2 | 4% | $74,600 to $85,000 | $416 |
| EI | 1.63% | Up to $68,900 | $1,123.07 |
The first $3,500 you earn each year is free of CPP. CPP2 is a second, smaller contribution that only applies to earnings above $74,600.
Example: $60,000 a year
- CPP: 5.95% of ($60,000 − $3,500) = $3,361.75
- EI: 1.63% of $60,000 = $978
- Total: $4,339.75 a year
Why does my pay go up late in the year?
CPP and EI stop once you’ve paid the yearly maximum. If you earn more than $68,900, your EI stops before the end of the year. Above $74,600, regular CPP stops too, and CPP2 is taken at 4% instead until your earnings for the year reach $85,000. Your last paycheques are then bigger, and the deductions start again in January.
EI stops after paycheque 18, CPP after paycheque 20 and CPP2 after paycheque 23. From then on, each paycheque is about $284 bigger until January.
Our calculator spreads them evenly over the year, so its paycheque figure is an average.
Living in Quebec?
Quebec has its own versions:
- QPP (Quebec Pension Plan) at 6.3% instead of CPP, plus QPP2 at 4%
- QPIP (parental insurance) at 0.43% of earnings up to $103,000
- a lower EI rate of 1.30%, because QPIP covers parental leave
Two jobs?
Each employer takes CPP and EI separately, so you can pay more than the maximum. You get the extra back when you file your tax return.
See your own numbers
The income tax calculator shows your CPP, EI and income tax for any province. For all the 2026 rates, see Canada tax brackets.