Payroll contributions in Canada are the mandatory deductions that come off your pay before you ever see it — the Canada Pension Plan, the Quebec Pension Plan, Employment Insurance and, in Quebec, the parental insurance plan. This hub brings every 2026 rate, ceiling and maximum into one place, explains which ones apply to you, and links to a full guide for each program.
2026 Contribution Rates at a Glance
All figures below are the announced 2026 rates and earnings ceilings, effective for pay dates on or after 1 January 2026.
| Contribution | Who pays | 2026 employee rate | Earnings ceiling | Max employee contribution |
|---|---|---|---|---|
| CPP (base) | Outside Quebec | 5.95% on earnings over $3,500 | $74,600 (YMPE) | $4,230.45 |
| CPP2 (second tier) | Outside Quebec | 4.00%, no exemption | $74,600 – $85,000 (YAMPE) | $416.00 |
| QPP (base) | Quebec | 6.30% on earnings over $3,500 | $74,600 (MPE) | $4,479.30 |
| QPP2 (second tier) | Quebec | 4.00%, no exemption | $74,600 – $85,000 (AMPE) | $416.00 |
| Employment Insurance | Outside Quebec | 1.63% | $68,900 (MIE) | $1,123.07 |
| Employment Insurance | Quebec | 1.30% | $68,900 (MIE) | $895.70 |
| QPIP (parental insurance) | Quebec | 0.430% | $103,000 | $442.90 |
Stack those together and the most any employee can pay in statutory payroll contributions in 2026 is:
- Outside Quebec: $4,646.45 CPP + $1,123.07 EI = $5,769.52
- In Quebec: $4,895.30 QPP + $895.70 EI + $442.90 QPIP = $6,233.90
How Payroll Contributions in Canada Work
Every statutory contribution follows the same three-part structure, which is why the numbers above look the way they do:
- A rate — a fixed percentage of your earnings, set annually.
- A ceiling — the income level past which no further contributions are taken. This is why high earners see deductions disappear partway through the year.
- An exemption (pension plans only) — the first $3,500 of annual earnings is not subject to CPP or QPP. EI and QPIP have no exemption; they apply from the first dollar.
Your employer deducts these amounts each pay period, adds its own share, and remits the combined total to the Canada Revenue Agency (or Revenu Québec). None of it is discretionary: unlike income tax, you cannot adjust these deductions by filing a new TD1.
The Four Statutory Deductions
Canada Pension Plan (CPP)
The federal retirement, disability and survivor plan covering every province and territory except Quebec. Contributions are mandatory from 18 until you turn 65, then optional to 70 if you are already collecting a pension and formally elect to stop. For 2026 the rate holds at 5.95% while the ceiling rises to $74,600, with a second 4% tier (CPP2) running to $85,000.
Read the full 2026 CPP guide →
Quebec Pension Plan (QPP)
Quebec’s equivalent to CPP, administered by Retraite Québec. It uses the same $74,600 and $85,000 ceilings but a higher employee rate of 6.3%. Notably, the base rate fell for 2026 — from 10.8% to 10.6% combined — under a one-year measure that is scheduled to revert in 2027.
Read the full 2026 QPP guide →
Employment Insurance (EI)
Temporary income support after job loss, and special benefits for illness, maternity, parental leave and caregiving. The 2026 rate drops a cent to 1.63%, but the ceiling climbs to $68,900, so the maximum premium still rises to $1,123.07. Several temporary measures introduced in 2025 — including the waived waiting week and suspended severance allocation — remain in force for claims established on or before 10 October 2026.
Quebec Parental Insurance Plan (QPIP)
Quebec runs its own maternity, paternity, parental and adoption benefits, which is why Quebec workers pay a reduced EI rate. QPIP premiums fell sharply for 2026, from 0.494% to 0.430% for employees, while the insurable earnings maximum rose to $103,000 — producing a maximum employee premium of $442.90, down from $484.12 in 2025. Employers pay 0.602%, to a maximum of $620.06. It is the only Canadian payroll contribution whose maximum fell this year.
Read the full 2026 QPIP guide →
Which Contributions Apply to You
| Deduction | Working outside Quebec | Working in Quebec |
|---|---|---|
| CPP / CPP2 | Yes | No |
| QPP / QPP2 | No | Yes |
| Employment Insurance | Yes, at 1.63% | Yes, at the reduced 1.30% rate |
| QPIP | No | Yes |
What matters is the province where you report to work, not where you live. A worker living in Gatineau but employed at an Ottawa office pays CPP and full-rate EI; a Quebec-based employee of an Ontario company pays QPP, reduced EI and QPIP.
What Comes Off a $60,000 Salary in 2026
Statutory contributions only — income tax is separate and depends on your province and credits.
| Deduction | Outside Quebec | In Quebec |
|---|---|---|
| CPP / QPP | $3,361.75 | $3,559.50 |
| Second tier (CPP2 / QPP2) | $0.00 | $0.00 |
| Employment Insurance | $978.00 | $780.00 |
| QPIP | — | $258.00 |
| Total | $4,339.75 (7.23% of gross) | $4,597.50 (7.66% of gross) |
There is no second-tier contribution at this salary because CPP2 and QPP2 only apply above $74,600. For a figure matched to your own salary, pay frequency and province, use the payroll calculator.
When Each Deduction Stops for the Year
Once your year-to-date earnings reach a ceiling, that deduction stops entirely and your take-home pay jumps. The ceilings are reached in this order:
| Year-to-date earnings | What stops |
|---|---|
| $68,900 | EI premiums stop (all provinces) |
| $74,600 | Base CPP / QPP stops; the 4% second tier begins |
| $85,000 | CPP2 / QPP2 stops — no more pension contributions this year |
| $103,000 | QPIP stops (Quebec only) |
Each deduction resets to zero on 1 January, which is why January cheques are usually the smallest of the year.
Employer and Self-Employed Contributions
Employees see only half the cost. Employers match CPP and QPP dollar for dollar, pay 1.4 times the employee EI rate, and contribute 0.602% to QPIP in Quebec:
- CPP: employer maximum $4,646.45 per employee
- QPP: employer maximum $4,895.30 per employee
- EI: employer maximum $1,572.30 ($1,253.98 in Quebec)
- QPIP: employer maximum $620.06
Self-employed Canadians pay both shares. That means 11.9% base CPP plus 8% CPP2, to a 2026 maximum of $9,292.90, or 12.6% plus 8% QPP for a Quebec maximum of $9,790.60. EI is optional for the self-employed and covers special benefits only — never regular unemployment benefits — and requires 12 months of premiums before a claim can be made. Self-employed Quebec workers are covered by QPIP automatically, at 0.764% of net business income.
Voluntary Contributions: TFSA and RRSP
Not every contribution is mandatory. The two registered accounts most Canadians use sit alongside the statutory deductions above and are the main lever you actually control:
- Tax-Free Savings Account (TFSA) — the 2026 annual limit is $7,000. Contributions are not deductible, but growth and withdrawals are entirely tax-free, and withdrawn room is restored the following January.
- Registered Retirement Savings Plan (RRSP) — the 2026 limit is $33,810, or 18% of prior-year earned income if lower. Contributions reduce taxable income now and are taxed on withdrawal.
Unlike CPP, QPP and EI, these choices genuinely change your tax bill. An RRSP contribution can also reduce the tax withheld from each cheque if you file Form T1213 with the CRA.
Calculate Your Own Deductions
- Payroll Calculator — net pay per cheque, with CPP, CPP2, EI and tax broken out.
- Income Tax Calculator — full-year federal and provincial estimates.
- Income After Tax — take-home pay by salary and province.
- Salary Conversions — hourly, weekly, bi-weekly, monthly and annual gross pay.
- Tax Brackets & Marginal Rates — federal plus all 13 provinces and territories.
Frequently Asked Questions
What payroll contributions come off a Canadian paycheque in 2026?
Outside Quebec, two: CPP (including the CPP2 second tier) and Employment Insurance. In Quebec, three: QPP, a reduced-rate EI premium, and QPIP. Income tax is deducted as well, but it is a tax rather than a contribution and the amount you pay depends on your credits.
What is the maximum CPP contribution for 2026?
$4,646.45 for an employee — $4,230.45 of base CPP plus $416 of CPP2. Employers match that amount, and self-employed workers pay both shares, up to $9,292.90.
What is the maximum EI premium for 2026?
$1,123.07 outside Quebec and $895.70 in Quebec. Employers pay 1.4 times the employee rate, to a maximum of $1,572.30 ($1,253.98 in Quebec).
Do Quebec workers pay CPP?
No. Quebec operates its own plan, so workers reporting to a Quebec establishment contribute to QPP instead. The two plans use identical earnings ceilings and coordinate fully, so moving between provinces during your career does not cost you benefits.
Why do Quebec workers pay a lower EI rate?
Because Quebec funds its own maternity and parental benefits through QPIP, the federal EI rate is reduced to 1.30% for Quebec residents to avoid charging twice for the same coverage. Once QPIP is added, Quebec workers pay slightly more overall.
At what salary do payroll deductions stop for the year?
EI stops at $68,900 of year-to-date earnings, base CPP and QPP at $74,600, and the second tier at $85,000. In Quebec, QPIP continues to $103,000. Above $103,000 no statutory payroll contributions are deducted for the rest of the calendar year.
Do self-employed Canadians pay CPP and EI?
CPP or QPP is mandatory and you pay both the employee and employer share. EI is voluntary, gives access to special benefits only, and requires you to have paid premiums for at least 12 months before you can claim.
What happens if I overpay because I had two jobs?
Each employer applies the $3,500 exemption and the annual ceilings as though it were your only employer, so two jobs can push you past the maximum. Your excess employee contributions are refunded or credited when you file your return. The employers’ matching contributions are not refundable to them.
Last updated: 23 July 2026. CPP figures reflect the CRA’s announced 2026 ceilings (YMPE $74,600, YAMPE $85,000, YBE $3,500). EI rates and maximum insurable earnings are from the Canada Employment Insurance Commission’s 2026 premium rate announcement of 12 September 2025. QPP figures are verified against Retraite Québec, and QPIP rates against Revenu Québec. Next scheduled review: November 2026, when the CRA publishes the 2027 contribution ceilings. This page is general information, not tax or financial advice.