CPP & EI Maximums 2025 Canada. Rates & Contributions

As a cornerstone of Canada’s social safety net, the Canada Pension Plan (CPP) and Employment Insurance (EI) programs play a vital role in the financial lives of nearly every working Canadian. These mandatory payroll deductions provide a foundation for retirement income and a crucial buffer during periods of unemployment, illness, or major life events like welcoming a new child. However, the rules governing these contributions, particularly the rates and maximum amounts, are not static. Each year, the Government of Canada, through the Canada Revenue Agency (CRA) and Employment and Social Development Canada (ESDC), adjusts these figures to reflect the country’s economic landscape, primarily the growth in average wages.

For employees, employers, and self-employed individuals, understanding these changes is not just a matter of compliance—it’s essential for accurate budgeting, payroll administration, and financial planning. The introduction of the enhanced CPP, with its second earnings ceiling (CPP2), has added a new layer of complexity that requires careful attention.

This comprehensive guide serves as your authoritative, one-stop resource for all CPP and EI rates and maximums for 2025. We provide detailed explanations, practical examples, and crucial comparative data for 2024 to give you a complete picture of your contributions. Whether you’re calculating payroll deductions, forecasting your take-home pay, or planning your tax strategy, this article contains all the definitive numbers you need.

Quick Look: 2025 & 2024 CPP and EI Maximums at a Glance (Summary Table)

For those who need the key figures immediately, this summary table provides the most critical CPP and EI maximums for 2025 and 2024. These numbers apply to all of Canada, with the exception of Quebec, which is detailed in a separate section.

Contribution Metric	2025 Figures	2024 Figures
Year’s Maximum Pensionable Earnings (YMPE)	$71,200	$68,500
Year’s Additional Maximum Pensionable Earnings (YAMPE)	$76,000	$73,200
Maximum Insurable Earnings (MIE) for EI	$65,000	$63,200
Maximum Annual Employee CPP Contribution	$4,055.50	$3,867.50
(Base: $3,849.65 + CPP2: $205.85)		(Base: $3,754.45 + CPP2: $113.05)
Maximum Annual Employer CPP Contribution	$4,055.50	$3,867.50
(Base: $3,849.65 + CPP2: $205.85)		(Base: $3,754.45 + CPP2: $113.05)
Maximum Annual Employee EI Contribution	$1,072.50	$1,049.12
Maximum Annual Employer EI Contribution	$1,501.50	$1,468.77

Note: The figures for 2025 are based on the latest announcements from the Government of Canada. Always refer to official Canada.ca publications for final confirmation.

Understanding Your Payroll Deductions: CPP & EI Explained

Before diving into the detailed numbers, it’s important to understand the fundamental purpose of these two distinct programs. Though often grouped together as “payroll deductions,” they serve very different functions within Canada’s social contract.

The Canada Pension Plan (CPP) is a national social insurance program designed to provide contributors and their families with a partial replacement of earnings in the case of retirement, disability, or death. When you see a CPP deduction on your pay stub, you are contributing to your future retirement income. The CPP is a contributory plan, meaning your benefits are directly related to how much you contribute and for how long. The recent CPP enhancement aims to significantly increase this future income for the next generation of retirees.

Employment Insurance (EI), on the other hand, offers temporary income support to individuals who lose their jobs through no fault of their own (e.g., due to a shortage of work) while they look for work or upgrade their skills. The EI program also provides special benefits to workers who take time off work for specific life events, including illness, pregnancy, caring for a newborn or newly adopted child, or caring for a critically ill or injured person. Your EI premium payments are your access key to these essential benefits.

For nearly every employee in Canada, contributions to both CPP and EI are mandatory on all employment income up to the annual maximums.

Canada Pension Plan (CPP) Contributions for 2025

The CPP has undergone its most significant evolution in decades. Understanding the new two-tiered structure is crucial for correctly calculating contributions for 2025.

What is the CPP Enhancement and CPP2?

Starting in 2019, the Government of Canada began phasing in the CPP enhancement. The primary goal of this multi-year plan is to boost the future CPP retirement pension, increasing the income replacement rate from one-quarter (25%) to one-third (33.33%) of a contributor’s average work earnings.

This enhancement was rolled out in two phases:

1. Phase 1 (2019-2023): A gradual increase in the base CPP contribution rate from 4.95% to 5.95%.
2. Phase 2 (Starting in 2024): The introduction of a second, higher earnings ceiling called the Year’s Additional Maximum Pensionable Earnings (YAMPE). This creates a new tier of contributions known as the second additional CPP contribution (CPP2) for those who earn more than the traditional earnings ceiling.

This means that for 2025, higher-income earners will contribute to both the base CPP (up to the YMPE) and the new CPP2 (on earnings between the YMPE and YAMPE).

2025 CPP Maximums (First Earnings Ceiling – Base CPP)

This first tier of contributions applies to all working Canadians outside of Quebec. It is calculated based on the Year’s Maximum Pensionable Earnings (YMPE).

Year’s Maximum Pensionable Earnings (YMPE) for 2025

The YMPE is the traditional earnings ceiling for CPP contributions. It’s the maximum amount of annual earnings on which base CPP contributions are calculated. The YMPE increases each year to reflect the growth of the Average Weekly Earnings (AWE) in Canada.

• For 2025, the Year’s Maximum Pensionable Earnings (YMPE) is $71,200.
• For comparison, the 2024 YMPE was $68,500.

You do not contribute to the base CPP on any earnings above this amount.

CPP Basic Exemption for 2025

The CPP includes a basic exemption amount. You do not pay CPP contributions on the first portion of your annual income. This feature helps to shield lower-income earnings from deductions.

• The annual basic exemption amount for 2025 remains unchanged at $3,500.

Your CPP contributions are calculated on the portion of your pensionable earnings between the basic exemption and the YMPE.

CPP Contribution Rates for 2025 (Employee & Employer)

The contribution rate for the base CPP is set by federal legislation.

• For 2025, the employee and employer contribution rates for the base CPP remain at 5.95% each.

This rate is applied to your pensionable earnings above the $3,500 basic exemption and up to the YMPE of $71,200.

Maximum Annual CPP Contribution for 2025 (Employee & Employer)

The maximum annual contribution is the most that an employee or employer will pay into the base CPP for the year. Once you reach this maximum, CPP deductions will stop for the remainder of the year.

The calculation is: (YMPE – Basic Exemption Amount) × Contribution Rate

• Calculation for 2025: ($71,200 – $3,500) × 5.95% = $4,028.15
• The maximum annual base CPP contribution for an employee in 2025 is $4,028.15.
• The employer is required to match this amount, contributing another $4,028.15.

2025 Second Additional CPP (CPP2) Maximums (Second Earnings Ceiling)

This second tier of contributions, which began in 2024, only affects individuals whose income exceeds the first earnings ceiling (YMPE).

Year’s Additional Maximum Pensionable Earnings (YAMPE) for 2025

The YAMPE is the new, second earnings ceiling. The CPP2 contribution is calculated on the portion of your earnings that falls between the YMPE and the YAMPE.

• For 2025, the Year’s Additional Maximum Pensionable Earnings (YAMPE) is $76,000.
• For comparison, the 2024 YAMPE was $73,200.

CPP2 Contribution Rates for 2025

The contribution rate for the second tier (CPP2) is lower than the base rate.

• For 2025, the employee and employer contribution rates for CPP2 remain at 4.00% each.

This rate is applied only to the earnings in the YAMPE range (i.e., from $71,200.01 to $76,000).

Maximum Annual CPP2 Contribution for 2025

This is the maximum amount an individual or employer will contribute to the second tier of the enhanced CPP.

The calculation is: (YAMPE – YMPE) × CPP2 Contribution Rate

• Calculation for 2025: ($76,000 – $71,200) × 4.00% = $192.00
• The maximum annual CPP2 contribution for an employee in 2025 is $192.00.
• The employer must match this amount, contributing another $192.00.

Total Maximum CPP Contributions for 2025 (CPP + CPP2)

For an employee who earns $76,000 or more in 2025, their total maximum CPP contribution will be the sum of the base maximum and the CPP2 maximum.

• Total Maximum Employee Contribution: $4,028.15 (Base) + $192.00 (CPP2) = $4,220.15
• Total Maximum Employer Contribution: $4,028.15 (Base) + $192.00 (CPP2) = $4,220.15

Therefore, the total maximum amount deducted for the Canada Pension Plan from an employee’s earnings in 2025 will be $4,220.15.

How CPP Contributions Work for the Self-Employed in 2025

Self-employed individuals are responsible for remitting both the employee and the employer portions of the CPP contributions. This means they pay a combined, or double, rate. This is a significant consideration for financial planning when you are your own boss.

• Self-Employed Base CPP Rate: 5.95% (employee) + 5.95% (employer) = 11.90%
• Self-Employed CPP2 Rate: 4.00% (employee) + 4.00% (employer) = 8.00%

The maximum contributions are therefore doubled as well:

• Maximum Self-Employed Base CPP Contribution: $4,028.15 × 2 = $8,056.30
• Maximum Self-Employed CPP2 Contribution: $192.00 × 2 = $384.00
• Total Maximum Self-Employed CPP Contribution for 2025: $8,056.30 + $384.00 = $8,440.30

Self-employed individuals calculate and pay these contributions when they file their annual income tax return. A key benefit is that they can claim a tax deduction for the employer half of the contributions they pay, which reduces their overall net income for tax purposes.

Employment Insurance (EI) Maximums for 2025

The Employment Insurance program is administered by the Government of Canada and provides crucial financial support across the country. The premiums paid by employees and employers fund these benefits.

What is EI and Who Pays It?

As previously mentioned, EI provides temporary income support. Unlike CPP, which is tied to retirement, EI is about providing a safety net for your current working life. Premiums are paid by both employees and employers on insurable earnings. For employers, their contribution is higher than the employee’s, as they help to cover the administrative costs of the program.

Maximum Insurable Earnings (MIE) for 2025

Similar to the CPP’s YMPE, the EI program has a maximum earnings ceiling. This is called the Maximum Insurable Earnings (MIE). You pay EI premiums on your salary up to the MIE; any income earned above this amount is not subject to EI premiums.

• For 2025, the Maximum Insurable Earnings (MIE) is $65,000.
• For comparison, the 2024 MIE was $63,200.

This MIE figure is also used to calculate the maximum weekly benefit rate for those who claim EI. For 2025, the maximum weekly benefit will be 55% of the MIE divided by 52, which amounts to $713 per week.

EI Premium Rates for 2025 (Employee & Employer)

The premium rates are set annually by the Canada Employment Insurance Commission.

• For 2025, the employee EI premium rate is 1.65% of insurable earnings.
• The employer premium rate is always legislated to be 1.4 times the employee rate. For 2025, this is 1.65% × 1.4 = 2.31%.

These rates apply to residents of all provinces and territories except Quebec, which has its own plan for parental benefits (discussed below).

Maximum Annual EI Contribution for 2025 (Employee & Employer)

Once an employee’s total premiums for the year reach the maximum amount, deductions cease.

The calculation is: MIE × Premium Rate

• Maximum Annual Employee EI Contribution for 2025: $65,000 × 1.65% = $1,072.50
• Maximum Annual Employer EI Contribution for 2025: $65,000 × 2.31% = $1,501.50

EI for Self-Employed Individuals (Voluntary Program)

Unlike the mandatory CPP contributions, the EI program is voluntary for self-employed individuals. They can choose to opt into the program to gain access to the full suite of EI special benefits, which includes:

• Maternity and parental benefits
• Sickness benefits
• Family caregiver benefits
• Compassionate care benefits

Self-employed individuals who opt-in pay only the employee premium rate (1.65% in 2025) up to the MIE. They do not have access to EI regular benefits (for job loss). To be eligible to receive benefits, they must wait 12 months after registering for the program and meet minimum self-employed income requirements.

Special Considerations for Quebec (QPP and QPIP) in 2025

Quebec is unique in that it administers its own parallel pension and parental insurance plans. Workers in Quebec contribute to the Quebec Pension Plan (QPP) instead of the CPP, and the Quebec Parental Insurance Plan (QPIP) instead of the EI program for parental benefits.

Quebec Pension Plan (QPP) vs. CPP

The QPP mirrors the CPP in most respects, including the introduction of an enhanced, two-tiered system. The YMPE and YAMPE are identical to the rest of Canada. However, the contribution rates and maximums are different, primarily because Quebec’s demographic profile is different from the rest of Canada’s.

Here is a comparison for 2025:

QPP vs. CPP Metric (2025)	Quebec (QPP)	Rest of Canada (CPP)
Year’s Maximum Pensionable Earnings (YMPE)	$71,200	$71,200
Year’s Additional Maximum Pensionable Earnings (YAMPE)	$76,000	$76,000
Basic Exemption Amount	$3,500	$3,500
Base Contribution Rate (Employee/Employer)	6.40%	5.95%
Max Base Contribution (Employee/Employer)	$4,332.80	$4,028.15
Second Tier Contribution Rate	4.00%	4.00%
Max Second Tier Contribution (Employee/Employer)	$192.00	$192.00
Total Max Contribution (Employee/Employer)	$4,524.80	$4,220.15
Total Max Self-Employed Contribution	$9,049.60	$8,440.30

As shown, employees and employers in Quebec contribute a higher amount to their pension plan.

Quebec Parental Insurance Plan (QPIP) vs. EI

Workers in Quebec pay into the QPIP to fund generous maternity, paternity, parental, and adoption benefits. Because QPIP covers this, Quebec employees and employers pay a reduced EI premium to the federal government. This reduced EI premium covers sickness and compassionate care benefits, which remain under the federal EI program.

Here is a comparison of the premium rates for 2025:

QPIP vs. EI Metric (2025)	Quebec Residents	Rest of Canada Residents
Maximum Insurable Earnings (MIE/MISA)	QPIP: $94,000 / EI: $65,000	EI: $65,000
Employee Premium Rate	QPIP: 0.494% + EI: 1.29%	EI: 1.65%
Employer Premium Rate	QPIP: 0.692% + EI: 1.81%	EI: 2.31%
Max Annual Employee Premium	QPIP: $464.36 + EI: $838.50	EI: $1,072.50
Max Annual Employer Premium	QPIP: $650.48 + EI: $1,173.90	EI: $1,501.50

Note: The Maximum Insurable Annual Salary (MISA) for QPIP is significantly higher than the federal MIE.

Historical Data: CPP and EI Maximums (2020-2024)

Observing the trend in maximums over the past five years provides valuable context for understanding the pace of change, particularly with the recent CPP enhancement.

Year	YMPE	YAMPE (from 2024)	MIE	Max Employee CPP Contribution	Max Employee EI Contribution
2024	$68,500	$73,200	$63,200	$3,867.50 ($3754.45 + $113.05)	$1,049.12
2023	$66,600	N/A	$61,500	$3,701.40	$1,002.45
2022	$64,900	N/A	$60,300	$3,499.80	$952.74
2021	$61,600	N/A	$56,300	$3,166.45	$889.54
2020	$58,700	N/A	$54,200	$2,898.00	$856.36

This table clearly illustrates the steady rise in the earnings ceilings and the significant jump in CPP contributions resulting from the enhancement plan.

Looking Ahead: What to Expect for CPP and EI in 2026

While the official rates and maximums for 2026 will only be announced by the government in late 2025, it is possible to understand the direction they will take. These numbers are not determined arbitrarily. They are legislated to increase based on the growth of the Average Weekly Earnings (AWE) in Canada.

The formula for the YMPE, for example, is based on a moving average of the AWE. As long as wages in Canada continue to rise, you can expect the YMPE, YAMPE, and MIE to increase each year. Consequently, the maximum contribution amounts for both CPP and EI will also rise. Factors like inflation, labour market tightness, and overall economic productivity influence wage growth and will therefore have a direct impact on the 2026 figures. Watch for the official announcement from the Canada Revenue Agency and Government of Canada in November 2025 for the definitive numbers.

Practical Examples: Calculating Your Contributions

Let’s apply these numbers to three practical scenarios to see how they affect different employees.

Example 1: Salaried Employee (Income: $65,000)

• Persona: Alex works in marketing and earns an annual salary of $65,000. Alex lives in Ontario.
• EI Calculation: Alex’s income of $65,000 is equal to the 2025 MIE of $65,000.
  • Total EI to be paid: $65,000 × 1.65% = $1,072.50. Alex will pay EI premiums all year until this maximum is reached on the final paycheque.
• CPP Calculation: Alex’s income is below the 2025 YMPE of $71,200. Therefore, Alex does not contribute to the second tier (CPP2).
  • Pensionable earnings: $65,000 – $3,500 (basic exemption) = $61,500.
  • Total CPP to be paid: $61,500 × 5.95% = $3,659.25.
• Total Deductions: Alex’s total mandatory contributions for 2025 will be $1,072.50 (EI) + $3,659.25 (CPP) = $4,731.75.

Example 2: High-Income Employee (Income: $90,000)

• Persona: Ben is an engineer earning $90,000 annually. Ben lives in Alberta.
• EI Calculation: Ben’s income is well above the MIE of $65,000.
  • Ben will pay EI premiums on the first $65,000 of income only.
  • Total EI to be paid: $65,000 × 1.65% = $1,072.50. Ben will reach this maximum contribution amount sometime in the fall, and EI deductions will stop for the rest of the year.
• CPP Calculation: Ben’s income is above both the YMPE and YAMPE. Ben will contribute the maximum to both tiers.
  • Base CPP: ($71,200 – $3,500) × 5.95% = $4,028.15.
  • CPP2: ($76,000 – $71,200) × 4.00% = $192.00.
  • Total CPP to be paid: $4,028.15 + $192.00 = $4,220.15. Ben will max out CPP contributions before the end of the year.
• Total Deductions: Ben’s total mandatory contributions for 2025 will be $1,072.50 (EI) + $4,220.15 (CPP) = $5,292.65.

Example 3: Self-Employed Professional (Income: $100,000)

• Persona: Chloe is a self-employed graphic designer with a net income of $100,000. Chloe lives in British Columbia.
• EI Calculation: Chloe has chosen to opt into the voluntary EI program for special benefits.
  • Total EI premium to be paid: $65,000 (MIE) × 1.65% = $1,072.50.
• CPP Calculation: As a self-employed individual, Chloe must pay both the employee and employer portions. Her income exceeds the YAMPE.
  • Base CPP (Self-Employed): ($71,200 – $3,500) × 11.90% = $8,056.30.
  • CPP2 (Self-Employed): ($76,000 – $71,200) × 8.00% = $384.00.
  • Total CPP to be paid: $8,056.30 + $384.00 = $8,440.30.
• Total Contributions: Chloe will remit a total of $1,072.50 (EI) + $8,440.30 (CPP) = $9,512.80 when filing her 2025 tax return. She can claim a deduction for half of her CPP contribution ($4,220.15) and a tax credit for the other half plus her EI premiums.

Frequently Asked Questions (FAQ)

Q: When do my CPP and EI deductions stop during the year?
A: Your CPP and EI deductions stop once you have paid the maximum annual contribution for the year. This is often referred to as “maxing out.” For higher-income earners, this typically happens in the summer or fall. After you’ve maxed out, your take-home pay will increase for the remainder of the year because those deductions are no longer taken.

Q: What happens if I switch jobs or have two employers?
A: Each employer is required to deduct CPP and EI as if they were your only employer. This means a new employer will start your deductions from zero, without considering what you paid at your previous job. This often leads to an overpayment. If you contribute more than the annual maximum, the excess amount will be refunded to you by the CRA after you file your tax return.

Q: Can I choose to stop contributing to CPP?
A: In most cases, no. However, if you are between the ages of 65 and 70, are still working, and are receiving a CPP or QPP retirement pension, you can file an election to stop contributing to the CPP. You do this by filling out Form CPT30 and giving a copy to your employer. The election takes effect on the first day of the month following the date you provide the form to your employer.

Q: How do CPP contributions affect my taxes?
A: Your CPP contributions provide you with a valuable tax credit. For the enhanced portion, the treatment is different. Contributions related to the original CPP provide a 15% non-refundable tax credit. Contributions related to the enhancement (both the increased base rate post-2019 and the new CPP2 contribution) are treated as a tax deduction, which reduces your net income directly. Your T4 slip will break this down for you.

Q: How do EI contributions affect my taxes?
A: Similar to the base CPP, your total annual EI premiums provide you with a 15% non-refundable personal tax credit. This credit reduces the amount of federal tax you have to pay.

Key Takeaways for 2025

Navigating the landscape of Canadian payroll deductions is a critical financial skill. As we move into 2025, the key is to be aware of the increased earnings ceilings and the continuing impact of the two-tiered CPP enhancement.

Here are the most important takeaways for the year:

• Higher Earnings Ceilings: The maximum earnings subject to contributions have increased for all programs. The Year’s Maximum Pensionable Earnings (YMPE) is now $71,200, the Year’s Additional Maximum Pensionable Earnings (YAMPE) is $76,000, and the Maximum Insurable Earnings (MIE) for EI is $65,000.
• Increased Maximum Contributions: As a result of the higher ceilings, the maximum contribution amounts for both employees and employers have risen. An employee earning over $76,000 will contribute a total of $4,220.15 to CPP and $1,072.50 to EI in 2025.
• Self-Employed Responsibility: Self-employed individuals face a significant contribution amount, with a total maximum CPP of $8,440.30 for 2025. Diligent planning is essential.
• Quebec’s Different Rates: Remember that workers in Quebec have higher contribution rates for the QPP and a completely different structure for parental benefits under QPIP.

By using this guide to understand your obligations and the system you are contributing to, you can better plan your financial year, ensure your payroll systems are accurate, and appreciate the robust benefits that the Canada Pension Plan and Employment Insurance programs provide.