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CPP and EI contributions for 2026 start with two rates. An employee pays CPP at 5.95% on earnings between $3,500 and $74,600, and EI at 1.63% on earnings up to $68,900 outside Quebec. The employer matches the CPP dollar for dollar and pays 1.4 times the employee’s EI. You hold both deductions back from pay and pass them on with the employer share, so they’re never the employee’s expense or the company’s income.
What are the 2026 CPP and EI contributions maximums?
Both plans stop taking money once earnings reach a ceiling. After that, pay arrives with no CPP or EI deducted until the year turns over, which is why high earners see a fatter cheque late in the year. These figures come from the CRA payroll pages.
| Item | 2025 | 2026 |
|---|---|---|
| CPP maximum pensionable earnings | $71,300 | $74,600 |
| CPP basic exemption | $3,500 | $3,500 |
| CPP rate, employee and employer each | 5.95% | 5.95% |
| CPP maximum per person | $4,034.10 | $4,230.45 |
| EI maximum insurable earnings | $65,700 | $68,900 |
| EI employee rate (outside Quebec) | 1.64% | 1.63% |
| EI maximum employee premium | $1,077.48 | $1,123.07 |
| EI maximum employer premium | $1,508.47 | $1,572.30 |
There’s a second CPP layer too. Earnings between $74,600 and $85,000 in 2026 carry an extra contribution called CPP2, at 4% in our data, with a maximum of $416. Most of your staff will never reach it, but a manager on $90,000 will.
How do I work out one pay period?
Take an employee paid $2,500 every two weeks, which is $65,000 a year. Our payroll deductions calculator shows $140.74 of CPP and $40.75 of EI for Ontario. The CPP figure comes from pay above the exemption, which the calculator spreads across 26 pay periods.
The employer side is where people slip. Your matching CPP is also $140.74. Your EI is 1.4 times $40.75, or $57.05. So a $2,500 cheque really costs you $2,697.79 before anything else, and the employee sees $1,944.45 after all deductions.
Over the year that’s $3,659.25 of CPP and $1,059.50 of EI from the employee, and the same CPP plus $1,483.30 of EI from you. Neither maximum is reached at $65,000, so nothing stops mid-year.
How do I record these contributions in the books?
Think in three buckets.
Gross wages are an expense. Your CPP and EI share is another expense. And what you deducted from the employee, along with your own share, sits as an amount owing to the CRA until you send it in.
That means the employee’s deduction never touches your profit. Only your share does.
Most accounting programs handle all of this once the payroll items are set up properly, but because one wrong rate in January repeats on every cheque until someone notices, check the first run against a hand calculation. To see what a month of remittances looks like, use the payroll remittance calculator.
Records matter here. Keep a record per employee: gross pay, pensionable earnings, insurable earnings, each deduction and the year-to-date totals. You’ll want them for year-end slips and for any CRA question. We couldn’t confirm a retention period from an official page, so check the CRA’s record-keeping guidance.
What differs in Quebec and for the self-employed?
Quebec has its own pension plan, the QPP, and its own parental insurance, so its payroll is separate. The federal EI rate is lower there: 1.30% in 2026 with a maximum employee premium of $895.70 and an employer maximum of $1,253.98. The QPP and QPIP rates come from Revenu Québec, and we haven’t confirmed them here.
If you work for yourself you pay both halves of CPP. The CRA puts the 2026 maximum at $8,460.90. Our self-employed tax calculator estimates it, although it leaves out EI.
Common payroll mistakes
Using last year’s rates is the big one, and it’s easy to do. The rates and ceilings change every January, and the EI rate even moved down by a hundredth of a point this year. Forgetting the employer’s 1.4 multiplier on EI comes second.
Another is stopping CPP at the wrong moment. The $3,500 exemption is spread over pay periods, so it doesn’t vanish on the first cheque. A bonus can also push one pay period’s deductions up, and our bonus tax calculator shows what a bonus does to income tax.
Where the numbers come from
CPP rates, ceilings and maximums come from the Canada Revenue Agency’s CPP contribution page for 2025 and 2026. EI premium rates, maximums and the 1.4 employer multiplier come from the CRA’s EI premium page. The CPP2 rate comes from our 2026 data file. Pay examples come from the calculators listed above. We aren’t connected to the CRA.
Frequently asked questions
Does the employer pay CPP and EI too?
Yes. The employer matches the employee's CPP and pays 1.4 times the employee's EI premium.
What are the 2026 CPP and EI maximums?
CPP is $4,230.45 per person and EI is $1,123.07 for the employee outside Quebec.
At what pay do CPP and EI stop?
CPP stops at $74,600 of earnings, then CPP2 applies up to $85,000. EI stops at $68,900.
Do self-employed people pay EI?
Not by default. They pay both halves of CPP, which the CRA puts at $8,460.90 for 2026.
Are Quebec rates the same?
No. Quebec's EI rate is 1.30% for 2026. QPP and QPIP rates are set by Revenu Quebec.
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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.