CPP/EI Contribution Calculator

CPP, CPP2, and EI Contribution Rates for 2026

The Canada Pension Plan (CPP) is a mandatory contribution for all employed and self-employed Canadians aged 18–70. In 2026, the CPP1 employee contribution rate is 5.95% on pensionable earnings between the basic exemption ($3,500) and the first earnings ceiling ($74,600), producing a maximum employee contribution of $4,230. Employers match this amount dollar for dollar. Self-employed individuals pay both portions, totalling 11.9%. CPP2, the enhanced component introduced in 2024, applies an additional 4% on earnings between the first and second earnings ceilings ($74,600 to $85,000), with a maximum employee contribution of $416.

Employment Insurance (EI) premiums for 2026 are 1.63% of insurable earnings up to the maximum insurable amount of $68,900, producing a maximum employee premium of approximately $1,123. Employers pay 1.4 times the employee rate. Quebec residents pay a reduced EI rate (approximately 1.30%) because the province operates its own parental insurance plan (QPIP), which charges a separate premium of 0.430% on earnings up to $103,000. Together, CPP and EI deductions represent a significant payroll cost — an employee earning $75,000 contributes roughly $5,370 annually, while their employer pays a slightly larger share of about $5,820.

2026 CPP and EI Contribution Maximums

If you hold multiple jobs, each employer deducts CPP and EI independently, which can result in overpayments. The CRA automatically calculates any excess and applies it as a credit on your tax return. Self-employed individuals can opt into EI for special benefits (maternity, parental, sickness, compassionate care) but cannot claim regular EI benefits. CPP contributions directly increase your future retirement pension — the maximum CPP retirement pension at age 65 in 2026 is approximately $1,508 per month, though enhanced CPP2 contributions will gradually increase this amount for those who contribute over many years.

What Changed for 2026

• The CPP earnings ceiling (YMPE) is $74,600 with the basic exemption unchanged at $3,500 — a maximum base contribution of $4,230.45 at 5.95% for employees.
• The CPP2 ceiling is $85,000. The 4% second-tier contribution on earnings between $74,600 and $85,000 maxes out at $416 (employee), matched by the employer.
• EI is 1.63% on insurable earnings up to $68,900 — a maximum employee premium of $1,123.07; employers pay 1.4× that (up to $1,572.30).
• Quebec’s QPIP employee rate dropped to 0.430% (from 0.494% in 2025), on insurable earnings up to $103,000 — a maximum premium of $442.90. Quebec’s reduced EI rate is 1.30% (maximum $895.70).
• Quebec’s QPP rate stays higher than CPP: 6.3% versus 5.95%, for a maximum employee contribution of $4,479.30.
• Combined employee maximums for 2026: $5,769.52 outside Quebec (CPP $4,230.45 + CPP2 $416 + EI $1,123.07) and $6,233.90 in Quebec (QPP $4,479.30 + QPP2 $416 + EI $895.70 + QPIP $442.90).

Worked Example: $80,000 Salary

An $80,000 salary sits above the CPP ceiling ($74,600) and the EI ceiling ($68,900) but inside the CPP2 band, so two of the three deductions are at their maximums and CPP2 applies only to the slice above the first ceiling. Outside Quebec:

The same $80,000 in Quebec: QPP ($74,600 − $3,500) × 6.3% = $4,479.30, QPP2 $216.00, EI at the reduced rate $68,900 × 1.30% = $895.70, plus QPIP $80,000 × 0.430% = $344.00 — a total of $5,935.00, or $365.48 more than the rest of Canada. The mix differs, not just the total: Quebec workers pay more toward the pension plan and a separate parental-insurance premium, offset by the lower EI rate.

The employer side of the same paycheque: your employer matches CPP and CPP2 dollar for dollar and pays 1.4 times your EI premium. At $80,000 outside Quebec that is $4,230.45 + $216.00 + $1,572.30 (1.4 × $1,123.07) = $6,018.75 — slightly more than the employee’s $5,569.52, for a combined $11,588.27 remitted on top of income tax withholding. At the 2026 ceilings the employer’s share reaches $6,218.75 per employee.

Employee Contributions by Salary (2026)

Computed with the exact 2026 parameters this calculator uses. Note how the totals flatten once each ceiling is passed:

Outside Quebec, contributions max out at $5,769.52 once salary reaches $85,000 — beyond that, no further CPP or EI is deducted for the year. In Quebec the total keeps creeping up until QPIP’s $103,000 ceiling, where it tops out at $6,233.90. The Quebec column is higher at every level mainly because of the QPP rate (6.3% vs 5.95%) and QPIP, partly offset by the lower EI rate.