CPP and EI calculator
What comes off your pay for national pension and unemployment contributions, band by band.
CPP and EI deducted
Estimate$5,650.00
6.9% of employment income
- CPP
- $4,230.00
- CPP2
- $296.00
- EI
- $1,123.00
| Employment income | $82,000 |
|---|---|
| Basic exemption | -$3,500.00 |
| CPP at 5.95% | -$4,230.00 |
| CPP2 at 4% above the first ceiling | -$296.00 |
| EI at 1.64% | -$1,123.00 |
| Total deducted | -$5,650.00 |
- Employee share only. Your employer pays a matching amount for CPP and 1.4 times yours for EI.
- Income tax is charged separately and is not included here.
On $82,000, pension contributions apply between $3,500 and $74,600, then a second 4% band runs to $85,000.
How this is calculated
How this is calculated
Two pension bands, not one
Contributions run at 5.95% between $3,500 and $74,600, then a second 4% band applies up to $85,000. Treating the first ceiling as the end understates the deduction for higher earners.
second band = 4% × (min(income, 85,000) − 74,600)A basic exemption applies first
The first $3,500 of earnings is exempt, worth about $208 at the 5.95% rate. It is an annual figure applied once, not once per employer.
Unemployment insurance has a lower ceiling
The insurance premium is 1.64% of earnings up to $68,500, capping at roughly $1,123 — a lower ceiling than the pension contribution, so it stops earlier in the year.
Worked example: $82,000 of employment income
| Employment income | $82,000 |
|---|
| First band | $3,500 to $74,600 |
|---|---|
| Second band | Up to $85,000 |
Contribution rates and ceilings differ by country. Pick a country above for figures that match your payslip.
What this assumes
- Employee contributions only.
- A single employer for the full year.
- National rates with no regional variation.
- Employment income only.
Where this commonly goes wrong
- Multiple employers each apply the exemption and ceiling separately, which commonly over-deducts across the year.
- The self-employed usually pay both the employee and employer share, roughly doubling the contribution.
- Some provinces or regions run their own schemes at different rates, so national figures can be wrong locally.
Questions
How much comes off for pension contributions?
In Canada, 5.95% of earnings between $3,500 and $74,600, plus 4% on earnings from there to $85,000. The second band is recent and is missing from many published calculators.
Why does my pay increase later in the year?
Because contributions stop once earnings pass their ceilings — $68,500 for the insurance premium and $85,000 for the pension. Both ending is a cash-flow change, not a pay rise.
Does the employer contribute as well?
Usually. In Canada employers match the pension contribution and pay 1.4 times the insurance premium, so the true cost of employment is well above the payslip deduction.
What happens if I work for two employers?
Each one applies the $3,500 exemption and the $74,600 and $68,500 ceilings independently, so the combined deduction usually exceeds the annual maximum. The excess comes back through your tax return rather than being corrected during the year.
Are these contributions deductible?
The enhanced portion of the pension contribution is deductible against income, while the base portion attracts a tax credit instead. The self-employed additionally deduct half of the employer share they pay themselves.
Related tools
Sources
General estimate based on published CRA rates for the current period. Not tax advice. Confirm your position with the CRA or a qualified adviser.
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