Guide
CPP and EI max 2026: employer rates, maximums and examples
Updated
CPP and EI are the two statutory deductions every Canadian employer outside Quebec matches or exceeds. Here is the 2026 position, with the maximums that cap each line.
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- Employer CPP at 5.95% of pensionable earnings between the $3,500 basic exemption and the 2026 YMPE of $74,600, matching the employee's contribution. Maximum $4,230.45 each (canada.ca: CPP contribution rates).
- Employer CPP2 (second additional CPP) at 4% on earnings between the YMPE ($74,600) and the 2026 YAMPE of $85,000; maximum $416.00 each (same canada.ca source).
- Employer EI at 1.4 times the employee premium. The 2026 employee rate is $1.63 per $100 of insurable earnings up to the $68,900 maximum. The employer pays up to $1,572.30 per employee (canada.ca: EI premium rates). Some employers with approved wage-loss plans qualify for a reduced multiple.
- Federal-only model, outside Quebec. Quebec employers pay QPP (6.30% in 2026: 5.3% base plus 1% additional, Retraite Québec), QPIP and the Health Services Fund instead of parts of this model. Quebec's employee EI rate is lower.
- Provincial payroll taxes elsewhere (Ontario's Employer Health Tax, Manitoba's Health and Post Secondary Education Tax Levy, BC's Employer Health Tax, Newfoundland and Labrador's HAPSET) are not included. Nor are workers' compensation premiums; they vary by province, payroll size and industry.
- Figures are for the 2026 contribution year. The CRA publishes new CPP and EI maximums each autumn for the following January; verify the current year's figures on canada.ca before budgeting.
- Vacation pay is not an extra line for salaried staff: it is inside the salary. For hourly staff, provincial minimums of roughly 4% of wages apply and should be added to the wage figure you enter.
CPP 2026 rates: the employer match
Employers contribute to the Canada Pension Plan at 5.95% of each employee's pensionable earnings between the $3,500 basic exemption and the year's maximum pensionable earnings (YMPE), $74,600 for 2026. That matches the employee's own 5.95% dollar for dollar. The 2026 maximum is $4,230.45 each (canada.ca: CPP contribution rates, maximums and exemptions).
CPP2: the second earnings ceiling
Since 2024, earnings between the YMPE and a second ceiling (the YAMPE, $85,000 for 2026) attract a second additional contribution, CPP2. It is 4% from employer and employee alike, a 2026 maximum of $416.00 each. An employee earning $85,000 or more therefore costs the employer $4,646.45 in total CPP in 2026.
EI rates 2026: the employer pays 1.4 times
Employment Insurance is not a match but a multiple: the employer pays 1.4 times the employee's premium. For 2026 the employee rate is $1.63 per $100 of insurable earnings up to the $68,900 maximum. So the employee pays up to $1,123.07 and the employer up to $1,572.30 per employee (canada.ca: EI premium rates and maximums).
Employers offering a qualifying short-term disability plan can apply for a reduced multiple under the EI premium reduction program.
| Salary | Employer CPP | Employer CPP2 | Employer EI | Total statutory |
|---|---|---|---|---|
| $50,000 | $2,767 | $0 | $1,141 | $3,908 |
| $70,000 | $3,957 | $0 | $1,572 | $5,529 |
| $100,000 | $4,230 | $416 | $1,572 | $6,219 |
Quebec is different
- Quebec runs its own pension plan: QPP at 6.30% (2026: 5.3% base plus 1% additional) instead of CPP's 5.95%, with the same earnings ceilings.
- Quebec employees pay a lower EI rate because parental benefits come from QPIP, which has its own employer premium.
- Quebec employers also contribute to the Health Services Fund on total payroll.
Rates and ceilings change every January; the CRA publishes the new maximums each autumn. This page states the 2026 position as of its updated date, and figures are corrected in place when new rates are published. Verify current rates on canada.ca before running payroll.