Payroll Deduction Rates: 2025 & 2026
Below are the updated Canada Pension Plan (CPP), Employment Insurance (EI), and Federal Basic Personal Amount figures effective January 1 for each year.
Canada Pension Plan (CPP)
| Year | Max Pensionable Earnings | Basic Exemption | Contribution Rate | Max Contribution (Employee/Employer) | CPP2 Range & Rate |
|---|---|---|---|---|---|
| 2025 | $71,300 | $3,500 | 5.95% | $4,034.10 | $71,300–$76,000 @ 4% |
| 2026 | $74,600 | $3,500 | 5.95% | $4,230.45 | $74,600–$85,000 @ 4% |
Employment Insurance (EI) — Deduction Rates & Limits (2025 & 2026)
Effective January 1 of each year. Employers generally remit 1.4× the employee premium.
2026 EI Rates
- Maximum Insurable Earnings (MIE): $68,900
- Employee EI Rate: 1.63%
- Maximum Employee Premium: $1,123.07
- Maximum Employer Premium: $1,572.30
2025 EI Rates
- Maximum Insurable Earnings (MIE): $65,700
- Employee EI Rate: 1.64%
- Maximum Employee Premium: $1,077.48
- Maximum Employer Premium: $1,508.47
| Year | Max Insurable Earnings (MIE) | Employee Rate | Max Employee Premium | Max Employer Premium |
|---|---|---|---|---|
| 2026 | $68,900 | 1.63% | $1,123.07 | $1,572.30 |
| 2025 | $65,700 | 1.64% | $1,077.48 | $1,508.47 |
Note: Figures reflect federal EI (outside Quebec). Confirm province-specific rules when applicable.