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Canada, 2026 rates. Employment outside Quebec

Employer CPP EI calculator for 2026

Every dollar an employee contributes to CPP, you contribute again; every dollar to EI, 1.4 times. Most hiring budgets leave it out. Enter a salary for the employer's 2026 CPP, CPP2 and EI premium from CRA's published tables.

$

Gross annual pensionable and insurable earnings. Most salaried pay is both; some benefits and allowances are treated differently.

An employer contributes only where the employee does. EI is separate and is not affected by this.

Employer CPP, CPP2 and EI for one employee

$5,529

On top of the salary, before any other employer payroll cost. Vacation pay, benefits, workers compensation premiums and provincial health or payroll levies are not included.

CPP contributory earnings$66,500
Your CPP contribution, at 5.95%$3,957
Earnings in the CPP2 band$0
Your CPP2 contribution, at 4%$0
EI insurable earnings$68,900
Employee EI premium, at 1.63%$1,123
Your EI premium, at 1.4 times the employee's$1,572
Total across this group of employees$5,529
Statutory uplift on the salary7.9%

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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 and read again, unchanged, on 2 November 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 salaryEmployer CPP at 5.95%Employer CPP2 at 4%Employer EI at 1.4xTotal employer costUplift on salary
$30,000$1,576.75$0.00$684.60$2,261.357.54%
$50,000$2,766.75$0.00$1,141.00$3,907.757.82%
$60,000$3,361.75$0.00$1,369.20$4,730.957.88%
$68,900$3,891.30$0.00$1,572.30$5,463.607.93%
$74,600$4,230.45$0.00$1,572.30$5,802.757.78%
$80,000$4,230.45$216.00$1,572.30$6,018.757.52%
$85,000$4,230.45$416.00$1,572.30$6,218.757.32%
$120,000$4,230.45$416.00$1,572.30$6,218.755.18%
$200,000$4,230.45$416.00$1,572.30$6,218.753.11%
  • 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 2026-11-02). Every rate and ceiling is taken from the Canada Revenue Agency's published tables read on 15 August 2026 and read again, unchanged, on 2 November 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.

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, and maximum contributory earnings are $71,100. 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, not from insurable earnings, because that is how CRA defines it: 1.4 times the employee's premium, after rounding. 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 checks 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. Schedule 1 of the Canada Pension Plan sets the base rate at 4.95% for employees and employers from 2003 onward. Schedule 2 sets the first additional rate at 1.0% each from 2024, making the 5.95% above, and the second additional rate at 4.0% each from 2024.
  • Section 20(2) fixes the Year's Basic Exemption at $3,500 for each year after 1997. 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. That 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 information site. 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, at most $6,218.75 per employee: $4,230.45 CPP, $416 CPP2 and $1,572.30 EI. Employer CPP matches the employee's at 5.95% of earnings between the $3,500 basic exemption and $74,600. CPP2 adds 4% on earnings between $74,600 and $85,000. For EI the employer pays 1.4 times the employee's premium, not the same amount.

What is the CPP employer contribution for 2026?

The same as the employee's, dollar for dollar. For 2026 both pay 5.95% on earnings between the $3,500 basic exemption and $74,600, so employer CPP stops at $4,230.45 per employee. Above that, the employer also matches CPP2 at 4% on earnings up to $85,000: $416 at most. Both are CRA's published 2026 maximums, read 2 November 2026.

Is the EI employer contribution the same as the employee's premium?

No; this is the commonest 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: a maximum employee premium of $1,123.07 and employer premium of $1,572.30. The multiplier applies to the rounded employee premium, not the earnings.

What is CPP2 and does the employer pay it?

Yes, at the same rate as the employee. CPP2 is 4% on earnings above the maximum pensionable earnings: for 2026, between $74,600 and $85,000, a band of $10,400. That caps employer CPP2 at $416. It is a band, not a surcharge on the whole salary: an employee on $80,000 attracts CPP2 on $5,400, 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, rate 5.95%, maximum $4,230.45 each. CPP2: additional maximum pensionable earnings $85,000, rate 4%, maximum $416 each. EI outside Quebec: maximum insurable earnings $68,900, employee rate 1.63%, maximum premiums $1,123.07 employee and $1,572.30 employer. All from the Canada Revenue Agency, read on the date at the top.

Why does the employer cost fall as a percentage of a higher salary?

Because all three stop at ceilings: EI at $68,900 of insurable earnings, CPP at $74,600 and CPP2 at $85,000. Above $85,000 the employer's statutory contribution is frozen at $6,218.75. The uplift peaks at about 7.9% of pay near the EI ceiling and is about 3.1% at $200,000. So junior hiring carries a proportionately higher statutory cost.

Does this work for an employee in Quebec?

No, and do not adjust it to try. A Quebec employee contributes to the Quebec Pension Plan, not CPP, and Quebec runs the Quebec Parental Insurance Plan. QPIP covers benefits EI provides elsewhere, so Quebec's EI rate is lower: 1.30% for 2026 against 1.63%. That gives maximum premiums of $895.70 employee and $1,253.98 employer. Use a Quebec calculation.

What else does an employee cost beyond CPP and EI?

This is the federal statutory floor, not the cost of employment. On top sit vacation and statutory holiday pay under provincial employment standards, and any provincial payroll or health levy. Workers compensation premiums are set by the provincial board by industry and claims experience. Benefits, group retirement plans and insurance are discretionary. This site gives no figure for them.

When do CPP and EI contributions restart?

At the start of each calendar year. An employee who hit the maximum in September contributes again from January, and so does the employer. That front-loads higher earners' employer contributions, easy to miss in a monthly budget built from an annual figure. Ceilings and EI rates are announced annually, so last year's figures are wrong by the whole increase.

PDOC 2026: is this CRA's PDOC calculator?

No. PDOC is CRA's own Payroll Deductions Online Calculator. CRA says it calculates federal, provincial (except for Quebec) and territorial payroll deductions for a pay period, including income tax, updated for July 2026. This site budgets the employer's own CPP, CPP2 and EI for a year. Use PDOC or payroll software for actual deductions on a pay date.

Sources

This site's own datasets, every figure quoted from its source and dated:

  • The CA Employer Levies carries 10 published figures read from 8 sources' own pages; the 4 published figures given by jurisdiction run from 1.23 to 7,800,000 CAD, read 11 November 2026.
  • The CA Income Tax Withholding carries 13 published figures read from 3 sources' own pages; the 5 published figures given by bracket run from 14 to 33 percent, read 11 November 2026.
  • The CA Remittance Calendar carries 11 published figures read from 3 sources' own pages, from 3 to 20 percent, read 7 November 2026.
  • The CA Statutory Contributions carries 31 published figures read from 6 sources' own pages, from 1.63 to 74,600 CAD, read 11 November 2026.
  1. CRA, CPP contribution rates, maximums and exemptions
  2. CRA, second additional CPP contribution rates and maximums
  3. CRA, EI premium rates and maximums
  4. Canada Pension Plan, consolidated (laws-lois.justice.gc.ca)
  5. Employment Insurance Act, consolidated (laws-lois.justice.gc.ca)
  6. CRA, Payroll Deductions Online Calculator (PDOC)

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