CPP and EI employee contribution rates and earnings limits for 2026
The 2026 CPP employee contribution rate is 5.95% on earnings above the basic exemption and up to $74,600. EI uses a separate premium rate and insurable-earnings ceiling.
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- CPP employee contribution rate 2026
- 5.95% of pensionable earnings, up to the YMPE of $74,600.CRA, CPP contribution rates maximums and exemptions
- CPP maximum annual pensionable earnings (YMPE) 2026
- $74,600 for 2026. Earnings below $3,500 are exempt; the maximum contributory earnings is $71,100.CRA, CPP contribution rates maximums and exemptions
- CPP maximum annual employee contribution 2026
- $4,230.45 (5.95% of $71,100).CRA, CPP contribution rates maximums and exemptions
- CPP2 YAMPE 2026
- $85,000. Earnings above the YMPE and up to the YAMPE are subject to the second additional CPP contribution at 4% for 2026.CRA, Second additional CPP rates and maximums
- CPP2 employee and employer contribution rate 2026
- 4% of earnings above the YMPE and up to the YAMPE.CRA, Second additional CPP rates and maximums
- EI employee premium rate 2026
- 1.63% of insurable earnings, up to the maximum insurable earnings of $68,900.CRA, EI premium rates and maximums
- EI maximum annual insurable earnings 2026
- $68,900 for 2026.CRA, EI premium rates and maximums
- EI maximum annual employee premium 2026
- $1,123.07 (1.63% of $68,900).CRA, EI premium rates and maximums
- Quebec EI employee premium rate 2026
- 1.30% for Quebec residents (Quebec administers its own parental insurance plan).CRA, EI premium rates and maximums
CPP is 5.95% on pensionable earnings up to $74,600
The Canada Pension Plan is a contributory, earnings-related social insurance program. Employees contribute 5.95% of their pensionable earnings, which are earnings between the basic exemption of $3,500 and the Year's Maximum Pensionable Earnings (YMPE) of $74,600. The $3,500 basic exemption means the first $3,500 of annual earnings is not subject to CPP contributions. The maximum CPP contribution for an employee in 2026 is therefore 5.95% of ($74,600 minus $3,500), which is 5.95% of $71,100, or $4,230.45. CRA, CPP contribution rates maximums and exemptions (opens in a new tab)
The employer contributes a matching amount at the same rate. Self-employed persons contribute at twice the employee rate on the same earnings base, because there is no employer match. The maximum self-employed CPP contribution for 2026 is $8,460.90. CRA, CPP contribution rates maximums and exemptions (opens in a new tab)
Beginning January 1, 2024, a second additional CPP contribution (CPP2) applies to earnings above the YMPE. CRA, CPP contribution rates maximums and exemptions (opens in a new tab).
The YMPE for 2026 is $74,600 and the Year's Additional Maximum Pensionable Earnings (YAMPE) is $85,000. CRA, RRSP and registered-plan limits (opens in a new tab).
Earnings above the YMPE and up to the YAMPE are subject to CPP2 at 4% for 2026. CRA, Second additional CPP rates and maximums (opens in a new tab).
EI is 1.63% on insurable earnings up to $68,900
The EI employee premium rate for 2026 is 1.63% of insurable earnings, up to the Maximum Annual Insurable Earnings of $68,900. The maximum annual EI employee premium for 2026 is $1,123.07. CRA, EI premium rates and maximums (opens in a new tab).
The standard employer EI premium is 1.4 times the employee premium. Employers with an approved wage loss replacement plan may qualify for a reduced rate. CRA, Employer EI contributions (opens in a new tab).
The EI maximum insurable earnings for 2026 is $68,900. CRA, EI premium rates and maximums (opens in a new tab).
The CPP YMPE for 2026 is $74,600. CRA, CPP contribution rates maximums and exemptions (opens in a new tab).
A person earning $80,000 has pensionable earnings capped at $74,600 for CPP and insurable earnings capped at $68,900 for EI. Both ceilings apply to the same employment income, at different thresholds.
This page is an original explanation of CRA material and does not imply CRA endorsement.