2026 rates: CPP is 5.95% on earnings between the $3,500 basic exemption and the $74,600 Year's Maximum Pensionable Earnings (YMPE), plus CPP2 at 4% on earnings up to the $85,000 additional limit. EI is 1.63% up to $68,900 of insurable earnings. Quebec uses QPP and QPIP instead, at different rates - not covered here. Employer contributions match CPP roughly 1:1 and aren't shown. Not tax advice.
Calculate Your 2026 CPP and EI Deductions
The Tools Kit's free CPP & EI Calculator works out the two federal payroll deductions that come off almost every Canadian paycheque: your Canada Pension Plan contribution and your Employment Insurance premium. Enter your annual gross salary above and it shows your 2026 CPP contribution (with the CPP2 second tier included), your EI premium, and the combined total, with the yearly maximums applied for you.
On a $60,000 salary, CPP is about $3,362 and EI is $978, for $4,340 a year. These figures cover the employee share only, for every province and territory except Quebec. The calculation runs in your browser and nothing you type is sent anywhere.
How to Use the CPP & EI Calculator
- 1
Enter your annual gross salary
Type your yearly employment income before any deductions, in Canadian dollars. Commas are fine, so 60,000 and 60000 both work.
- 2
Read your CPP contribution
The CPP card shows your total 2026 Canada Pension Plan contribution, with base CPP and any CPP2 second-tier amount combined.
- 3
Read your EI premium
The EI card shows your 2026 Employment Insurance premium, capped at the maximum once your salary passes $68,900.
- 4
Check the total and the CPP2 line
The total card adds CPP and EI together. If you earn more than $74,600, a note underneath shows how much of your CPP is CPP2.
If you are paid by the hour, convert your wage to a yearly figure first with the hourly to salary calculator, then enter that amount here.
2026 CPP, CPP2 and EI Rates and Maximums
CPP and EI are not progressive like income tax. Each is a flat percentage applied to a capped band of earnings, so once you pass the ceiling your contribution stops growing. The calculator uses these 2026 figures:
| Deduction | Employee rate | Earnings band | 2026 maximum |
|---|---|---|---|
| Base CPP | 5.95% | $3,500 to $74,600 | $4,230.45 |
| CPP2 | 4% | $74,600 to $85,000 | $416.00 |
| EI | 1.63% | $0 to $68,900 | $1,123.07 |
The maximum total CPP contribution for an employee in 2026 is therefore $4,646.45, and the most you can pay in CPP and EI combined is $5,769.52. The calculator displays results rounded to the nearest dollar, so these maximums appear as $4,646 and $1,123.
CPP and EI Formula With Worked Examples
The calculator applies three simple formulas to your annual gross salary:
- Base CPP = (salary up to $74,600 − $3,500) × 5.95%
- CPP2 = (salary up to $85,000 − $74,600) × 4%, only if you earn over $74,600
- EI = salary up to $68,900 × 1.63%
| Annual salary | CPP (incl. CPP2) | EI | Total |
|---|---|---|---|
| $30,000 | $1,577 | $489 | $2,066 |
| $60,000 | $3,362 | $978 | $4,340 |
| $80,000 | $4,446 ($216 CPP2) | $1,123 | $5,569 |
| $90,000 | $4,646 ($416 CPP2) | $1,123 | $5,769 |
Take the $80,000 row. Base CPP is ($74,600 − $3,500) × 5.95% = $4,230.45, because earnings above the YMPE do not attract the base rate. CPP2 applies to the $5,400 between $74,600 and $80,000, so 4% of that is $216. EI is capped at $68,900 × 1.63% = $1,123.07. Rounded, that is $4,446 of CPP and $1,123 of EI. To see the same salary after federal and provincial income tax as well, use the Canada income tax calculator, which includes these same CPP and EI figures in its take-home pay estimate.
What CPP2 Means for Higher Earners
CPP2 is the second stage of the CPP enhancement, introduced in 2024 to raise future retirement pensions. It only affects the slice of salary between the YMPE ($74,600) and the YAMPE ($85,000) in 2026. If you earn $70,000, your CPP2 is zero. At $80,000 it is $216, and from $85,000 up it is the full $416. The calculator adds a line under the results showing your CPP2 amount whenever it applies, so you can see how much of the jump in CPP comes from the new tier.
Because these contributions build your future CPP pension rather than disappearing as tax, many people plan them alongside personal retirement savings. The RRSP calculator estimates your contribution room and refund, and the TFSA calculator projects tax-free growth on top of what CPP will pay you.
Annual Totals Versus Your Paycheque
This tool gives annual figures. Your employer deducts CPP and EI every pay period, spreading the $3,500 basic exemption across the year, and stops deducting once you reach the annual maximum. A high earner may hit the EI cap in the autumn and the CPP cap later, and see larger paycheques for the rest of the year. Deductions restart every January.
To estimate a per-pay amount, divide the annual figure by your number of pay periods (26 for biweekly, 12 for monthly). If you want your salary broken into hourly, weekly or monthly pay, the salary to hourly calculator does that conversion, and the overtime calculator helps when extra hours push your gross pay, and your CPP and EI, higher than your base salary suggests.
Common uses
- Checking the CPP and EI deductions on a payslip or T4 against the 2026 rates
- Estimating payroll deductions on a new job offer before income tax
- Seeing how much CPP2 a raise past $74,600 will add
- Finding out when you will reach the maximum CPP and EI contributions for the year
- Budgeting the employee-side deductions for a small business payroll
For other Canadian money questions, the GST/HST calculator handles sales tax by province, and the full set of salary, tax and finance tools is on the calculators page.
CPP and EI terms explained
| Term | What it means here |
|---|---|
| CPP | Canada Pension Plan, the public retirement pension funded by contributions from employees, employers and the self-employed |
| EI | Employment Insurance, which pays benefits during job loss, parental leave, sickness and caregiving; employees pay a premium on insurable earnings |
| Basic exemption | The first $3,500 of yearly earnings, on which no base CPP is charged |
| YMPE | Year’s Maximum Pensionable Earnings: $74,600 for 2026, the ceiling for the 5.95% base CPP rate |
| YAMPE | Year’s Additional Maximum Pensionable Earnings: $85,000 for 2026, the ceiling for CPP2 |
| CPP2 | The second additional CPP contribution, 4% on earnings between the YMPE and the YAMPE |
| Maximum insurable earnings | $68,900 for 2026; EI premiums stop once your insurable earnings reach this amount |
| QPP / QPIP | Quebec Pension Plan and Quebec Parental Insurance Plan, which replace CPP and part of EI for Quebec workers |
Frequently Asked Questions
Base CPP is 5.95% of your earnings between the $3,500 basic exemption and the $74,600 YMPE. CPP2 adds 4% on earnings between $74,600 and $85,000. EI is 1.63% of insurable earnings up to $68,900. Each stops growing once its ceiling is reached. These are the 2026 rates and limits the calculator uses.
For an employee, $4,646.45: $4,230.45 of base CPP (5.95% of $71,100, which is $74,600 minus the $3,500 exemption) plus $416 of CPP2 (4% of the $10,400 between $74,600 and $85,000). Anyone earning $85,000 or more pays this maximum. The calculator rounds it to $4,646.
The maximum employee EI premium for 2026 is $1,123.07, which is 1.63% of the $68,900 maximum insurable earnings. Earning more than $68,900 does not raise your EI premium. The calculator shows it rounded to $1,123.
CPP2 is the second additional Canada Pension Plan contribution, introduced in 2024. In 2026 it is 4% on earnings between $74,600 and $85,000, on top of base CPP. You only pay it if you earn more than $74,600, and it tops out at $416.
On $60,000 in 2026, base CPP is ($60,000 - $3,500) x 5.95% = $3,361.75, about $3,362, with no CPP2. EI is $60,000 x 1.63% = $978. The combined total is about $4,340 a year.
On $90,000 you reach every 2026 maximum: CPP of about $4,646 (including the full $416 of CPP2) and EI of about $1,123, for a combined $5,769 a year. Any salary of $85,000 or more gives the same figures.
Both deductions have annual maximums. Once your year-to-date contributions reach the maximum, your employer stops deducting them for the rest of the calendar year, so higher earners often see a bigger paycheque in the final months. Deductions restart in January.
No. Quebec workers contribute to the Quebec Pension Plan (QPP) instead of CPP and to the Quebec Parental Insurance Plan (QPIP) alongside a reduced EI rate. Those rates are different and are not modeled by this calculator.
Yes. Employers match the employee CPP and CPP2 contributions, and pay EI premiums at 1.4 times the employee amount. This calculator shows only the employee share that is deducted from your pay; the employer share is not included in the totals.
Not directly. Self-employed people pay both the employee and employer halves of CPP, so their contribution is about double the figure shown here, and they only pay EI if they have opted into the special benefits program. The calculator assumes employment income.
Each employer deducts CPP and EI independently, without knowing what the other has taken, so people with two jobs can go over the annual maximum. The excess employee contribution is refunded when you file your income tax return.
They are calculated on your gross employment income, separately from income tax, and both reduce your take-home pay. Base CPP and EI give you federal tax credits, while the enhanced part of CPP and all of CPP2 are deductible from income.
Reviewed by Raja Jahangir · Last reviewed: October 2026
How are CPP and EI deductions calculated?
CPP is a percentage of earnings between the $3,500 basic exemption and the Year's Maximum Pensionable Earnings, plus a second CPP2 tier on earnings between that ceiling and the additional maximum. EI is a percentage of insurable earnings up to its own annual maximum. Both stop once the yearly cap is reached. Quebec uses QPP and QPIP instead.
What is CPP2?
CPP2 is the second additional Canada Pension Plan contribution introduced in 2024. It applies only to earnings above the Year's Maximum Pensionable Earnings and up to a higher second ceiling, at a separate lower rate. Earn below the first ceiling and CPP2 is zero; earn above the second and it stops increasing.
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