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 0.455% on earnings up to $103,000. Together, CPP and EI deductions represent a significant payroll cost — an employee earning $75,000 contributes roughly $5,200 annually, while their employer’s share exceeds $6,700.

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 $1,365 per month, though enhanced CPP2 contributions will gradually increase this amount for those who contribute over many years.