Canada, 2026 rates. Employment outside Quebec
Employer CPP and EI calculator: what a hire costs above salary
Every dollar an employee contributes to CPP, you contribute again. Every dollar they contribute to EI, you contribute 1.4 times. That is the whole of the arithmetic and it is the part most hiring budgets leave out, because the salary is the number that gets negotiated and the statutory cost on top of it is discovered by payroll afterwards. Enter a salary and this returns the employer's own CPP, the second additional CPP above the first ceiling, and the employer's EI premium, for 2026, with every rate and ceiling taken from the Canada Revenue Agency's published tables.
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Employer CPP, CPP2 and EI cost by salary, Canada 2026
Last updated
The employer's statutory contribution is not a percentage of salary: it is three separate charges, each with its own ceiling, so the uplift falls as salary rises and stops entirely above $85,000. This is that curve.
Every rate and ceiling is taken from the Canada Revenue Agency's published tables read on 15 August 2026: maximum pensionable earnings of $74,600, a basic exemption of $3,500, maximum contributory earnings of $71,100 and an employee and employer rate of 5.95% giving a maximum contribution of $4,230.45 each; additional maximum pensionable earnings of $85,000 with a 4% rate giving a maximum CPP2 contribution of $416 each; and maximum insurable earnings of $68,900 with an employee rate of 1.63% giving a maximum employee premium of $1,123.07, with CRA stating that the employer's premium will be 1.4 times this amount, giving $1,572.30. Every row is computed from those figures by the same expressions the calculator on this page runs, so the tool and the table cannot disagree, and each published maximum reproduces exactly from them. The structural rates behind the annual announcements are statutory: Schedules 1 and 2 to the Canada Pension Plan set the base rate at 4.95% and the first and second additional rates at 1.0% and 4.0% for employees and employers alike, section 20(2) fixes the basic exemption at $3,500 for each year after 1997, and section 18.1 sets the additional ceiling at 1.14 times the main one for 2025 onward, rounded down to a multiple of $100. Employment in Quebec is excluded because it uses the Quebec Pension Plan and the Quebec Parental Insurance Plan and a different EI rate, none of which this table models. Nothing here is estimated.
| Annual salary | Employer CPP at 5.95% | Employer CPP2 at 4% | Employer EI at 1.4x | Total employer cost | Uplift on salary |
|---|---|---|---|---|---|
| $30,000 | $1,576.75 | $0.00 | $684.60 | $2,261.35 | 7.54% |
| $50,000 | $2,766.75 | $0.00 | $1,141.00 | $3,907.75 | 7.82% |
| $60,000 | $3,361.75 | $0.00 | $1,369.20 | $4,730.95 | 7.88% |
| $68,900 | $3,891.30 | $0.00 | $1,572.30 | $5,463.60 | 7.93% |
| $74,600 | $4,230.45 | $0.00 | $1,572.30 | $5,802.75 | 7.78% |
| $80,000 | $4,230.45 | $216.00 | $1,572.30 | $6,018.75 | 7.52% |
| $85,000 | $4,230.45 | $416.00 | $1,572.30 | $6,218.75 | 7.32% |
| $120,000 | $4,230.45 | $416.00 | $1,572.30 | $6,218.75 | 5.18% |
| $200,000 | $4,230.45 | $416.00 | $1,572.30 | $6,218.75 | 3.11% |
- In 2026 an employer's CPP contribution equals the employee's exactly, at 5.95% of earnings between the $3,500 basic exemption and the $74,600 maximum pensionable earnings.
- The employer's EI premium is 1.4 times the employee's premium, not equal to it, which is the multiplier most often left out of a hiring budget.
- The maximum an employer pays in statutory CPP, CPP2 and EI for one employee outside Quebec in 2026 is $6,218.75: $4,230.45 plus $416 plus $1,572.30.
- CPP2 applies at 4% to earnings between $74,600 and $85,000 in 2026, capping the employer's second additional contribution at $416.
- The statutory uplift peaks at about 7.9% of salary around the EI ceiling of $68,900 and then falls, because all three contributions stop at their own ceilings.
- At a salary of $200,000 the same $6,218.75 is roughly 3.1% of pay, so the employer cost of a senior hire is proportionately much lower than that of a junior one.
- The 5.95% rate is two statutory rates added together: a base contribution rate of 4.95% from 2003 and a first additional rate of 1.0% from 2024, both identical for employees and employers.
- Employment in Quebec is a different calculation entirely, using the Quebec Pension Plan and the Quebec Parental Insurance Plan alongside a reduced EI employee rate of 1.30% in 2026.
Cite this page
“Employer CPP, CPP2 and EI cost by salary, Canada 2026”, Employer CPP EI Calculator, https://pdoccalculator.com/ (updated 2026-08-15). Every rate and ceiling is taken from the Canada Revenue Agency's published tables read on 15 August 2026: maximum pensionable earnings of $74,600, a basic exemption of $3,500, maximum contributory earnings of $71,100 and an employee and employer rate of 5.95% giving a maximum contribution of $4,230.45 each; additional maximum pensionable earnings of $85,000 with a 4% rate giving a maximum CPP2 contribution of $416 each; and maximum insurable earnings of $68,900 with an employee rate of 1.63% giving a maximum employee premium of $1,123.07, with CRA stating that the employer's premium will be 1.4 times this amount, giving $1,572.30. Every row is computed from those figures by the same expressions the calculator on this page runs, so the tool and the table cannot disagree, and each published maximum reproduces exactly from them. The structural rates behind the annual announcements are statutory: Schedules 1 and 2 to the Canada Pension Plan set the base rate at 4.95% and the first and second additional rates at 1.0% and 4.0% for employees and employers alike, section 20(2) fixes the basic exemption at $3,500 for each year after 1997, and section 18.1 sets the additional ceiling at 1.14 times the main one for 2025 onward, rounded down to a multiple of $100. Employment in Quebec is excluded because it uses the Quebec Pension Plan and the Quebec Parental Insurance Plan and a different EI rate, none of which this table models. Nothing here is estimated.
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The detail
Sourced, dated, kept current.
- How employer CPP and EI are actually calculated
Three charges with three ceilings, and one of them is a multiple of the employee's premium rather than of their earnings. The order of operations that gets it right.
- What this calculator leaves out of the cost of a hire
CPP and EI are the federal floor. Vacation pay, workers compensation and provincial payroll levies sit on top, and they vary by province.
- Quebec is a different calculation, not a variation
QPP instead of CPP, QPIP on top, and a reduced EI rate. Why this tool stops at the border rather than adjusting a percentage.
- Budgeting a hire in Canada: where the statutory cost actually bites
The uplift peaks near the EI ceiling and falls above it. What that means for junior hiring, part-time patterns and the January reset.
The assumptions
- 2026 rates, employment outside Quebec. Quebec employment is a different calculation: it uses the Quebec Pension Plan rather than CPP, adds the Quebec Parental Insurance Plan, and carries a reduced EI rate (1.30% for employees in 2026, against 1.63% elsewhere). This tool does not model QPP or QPIP and should not be used for a Quebec employee (CRA).
- CPP: the 2026 maximum annual pensionable earnings are $74,600, the basic exemption is $3,500, maximum contributory earnings are $71,100, and the employee and employer contribution rate is 5.95% each, giving a maximum annual employee and employer contribution of $4,230.45 (CRA).
- CPP2: the 2026 additional maximum annual pensionable earnings are $85,000, the employee and employer rate is 4%, and the maximum annual employee and employer contribution is $416. CPP2 applies to earnings above the annual maximum pensionable earnings (CRA).
- EI: the 2026 maximum annual insurable earnings are $68,900 and the employee rate is 1.63%, giving a maximum annual employee premium of $1,123.07. CRA states that "the employer's premium will be 1.4 times this amount", giving a maximum annual employer premium of $1,572.30 (CRA).
- The employer EI figure is computed from the employee premium rather than from insurable earnings, because that is how CRA defines it: 1.4 times the employee's premium, after that premium has been rounded. Computing it as 1.4 times the rate applied to earnings gives a figure that differs by cents from the published maximum.
- Every published maximum reproduces exactly from these inputs, which is the check that the tool and the source agree: ($74,600 minus $3,500) x 5.95% = $4,230.45; ($85,000 minus $74,600) x 4% = $416; $68,900 x 1.63% = $1,123.07 and x 1.4 = $1,572.30.
- The rates and ceilings are statutory in structure and announced annually in amount. The Canada Pension Plan sets the base contribution rate at 4.95% for employees and employers from 2003 onward (Schedule 1), the first additional rate at 1.0% each from 2024 (Schedule 2), which together make the 5.95% above, and the second additional rate at 4.0% each from 2024 (Schedule 2). Section 20(2) fixes the Year's Basic Exemption at $3,500 for each year after 1997, and section 18.1(1)(b) sets the additional maximum pensionable earnings at 1.14 times the maximum pensionable earnings for 2025 and later, rounded down to the next multiple of $100, which is how $74,600 produces $85,000 (Canada Pension Plan).
- Not included: vacation pay, statutory holiday pay, benefits, pension contributions, workers compensation premiums, provincial health or payroll levies such as the Employer Health Tax, and any territorial payroll tax. Those vary by province and by employer and are not modelled here, so the figure is the federal statutory floor rather than the full cost of employment.
- The CPP exemption setting covers employees under 18, employees over 70, and employees for whom an election not to contribute is in force. An employer contributes only where the employee does. EI is unaffected by that setting and continues.
- These figures change every January. The date at the top of this page is when the rates were read from CRA, and it is the date they belong to.
Employer CPP EI Calculator is an independent site operated by Ellul Solutions Ltd. It is not affiliated with, endorsed by or connected to the Canada Revenue Agency, Employment and Social Development Canada, Retraite Quebec or any government body, and it is not an accounting firm, a payroll bureau or a tax adviser. It is not the CRA's own Payroll Deductions Online Calculator and is not a substitute for it: for a specific pay period, and for income tax withholding, use CRA's own tool or your payroll software. Nothing here is tax or payroll advice. Every rate and ceiling on this page is taken from the Canada Revenue Agency tables cited above and read on the date shown at the top, with the underlying rate structure checked against the Canada Pension Plan on laws-lois.justice.gc.ca. These figures change every January. The calculator covers employment outside Quebec only, because Quebec uses the Quebec Pension Plan and the Quebec Parental Insurance Plan, and it gives the federal statutory contribution rather than the full cost of employment.
Frequently asked
How much does an employer pay in CPP and EI in Canada?
For 2026, outside Quebec, a maximum of $6,218.75 per employee: $4,230.45 in CPP, $416 in CPP2 and $1,572.30 in EI. The employer's CPP contribution matches the employee's exactly at 5.95% of earnings between the $3,500 basic exemption and the $74,600 maximum pensionable earnings. CPP2 adds 4% on earnings between $74,600 and $85,000. EI is different in shape: the employer pays 1.4 times the employee's premium rather than the same amount.
Is the employer EI premium the same as the employee's?
No, and this is the single most common error in a Canadian hiring budget. CRA states that the employer's premium will be 1.4 times the employee's amount. For 2026 the employee rate is 1.63% on maximum insurable earnings of $68,900, giving a maximum employee premium of $1,123.07 and a maximum employer premium of $1,572.30. Note also that the multiplier applies to the employee's premium after rounding, not to 1.4 times the rate applied to earnings, which produces a slightly different figure.
What is CPP2 and does the employer pay it?
Yes, and at the same rate as the employee. CPP2 is a second additional contribution of 4% on earnings above the annual maximum pensionable earnings. For 2026 that means earnings between $74,600 and the additional maximum of $85,000, a band of $10,400, capping the employer's CPP2 contribution at $416. It is a band rather than a surcharge on the whole salary, so an employee on $80,000 attracts CPP2 on $5,400 of earnings and not on $80,000.
What are the 2026 CPP and EI rates and maximums?
CPP: maximum pensionable earnings $74,600, basic exemption $3,500, maximum contributory earnings $71,100, employee and employer rate 5.95%, maximum contribution $4,230.45 each. CPP2: additional maximum pensionable earnings $85,000, rate 4% each, maximum contribution $416 each. EI outside Quebec: maximum insurable earnings $68,900, employee rate 1.63%, maximum employee premium $1,123.07, maximum employer premium $1,572.30. All are published by the Canada Revenue Agency and were read on the date shown at the top of this page.
Why does the employer cost fall as a percentage of a higher salary?
Because all three contributions stop at ceilings. EI stops at $68,900 of insurable earnings, CPP at $74,600 of pensionable earnings and CPP2 at $85,000, so above $85,000 the employer's statutory contribution is frozen at $6,218.75 however high the salary goes. The uplift peaks at about 7.9% of pay near the EI ceiling and is about 3.1% at a salary of $200,000. That makes the statutory cost of junior hiring proportionately higher than senior hiring.
Does this work for an employee in Quebec?
No, and it should not be adjusted to try. A Quebec employee contributes to the Quebec Pension Plan rather than to CPP, and Quebec operates the Quebec Parental Insurance Plan, which has no equivalent elsewhere. Because QPIP covers benefits that EI provides in the rest of the country, the Quebec EI rate is lower: CRA publishes 1.30% for 2026 against 1.63% elsewhere, giving a maximum employee premium of $895.70 and a maximum employer premium of $1,253.98. Use a Quebec calculation for Quebec employment.
What else does an employee cost beyond CPP and EI?
This calculator gives the federal statutory floor and not the cost of employment. On top sit vacation and statutory holiday pay under provincial employment standards, workers compensation premiums set by the provincial board by industry and claims experience, any provincial employer payroll or health levy, and everything discretionary: benefits, group retirement plans and insurance. None of those is predictable from a salary, which is why no figure for them appears anywhere on this site.
When do CPP and EI contributions restart?
At the beginning of each calendar year. An employee who reached the annual maximum in September begins contributing again in January, and so does the employer. For higher earners that front-loads the employer contribution into the earlier part of the year, which is easy to miss in a monthly budget built by dividing an annual figure by twelve. All the ceilings and both EI rates are also announced annually, so a budget built against last year's figures is wrong by the whole of the increase.
Sources
See the cost on top of the salary
One salary in, and you have the employer's CPP, CPP2 and EI for 2026, with every rate traceable to CRA.
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