CPP & EI Rates

Current Canadian payroll deductions — CPP, CPP2 (the second-tier expansion), and EI. Employee rates, employer matches, and the maximum annual contributions.

CPP and EI are mandatory payroll deductions for most Canadian employees. The employer matches both, and self-employed individuals pay both portions themselves. The 2025 rates and maximums below are republished from CRA’s annual payroll tables and used by our Detailed Income Tax Calculator.

CPP — Canada Pension Plan (base)

2025 figures:

Item	Amount
Employee rate	5.95%
Year’s basic exemption	$3,500
Year’s maximum pensionable earnings (YMPE)	$71,300
Maximum employee contribution	$3,867.50
Maximum employer contribution	$3,867.50
Maximum self-employed contribution	$7,735.00

The base CPP calculation is: min(employment income, YMPE) − exemption × employee rate, capped at the maximum.

Quebec residents contribute to the Quebec Pension Plan (QPP) at slightly different rates, but the mechanism is similar.

CPP2 — second tier (introduced 2024)

A second tier of CPP applies to earnings above the YMPE up to a second ceiling, with separate rates. This is part of the 2019–2025 phased CPP enhancement.

2025 figures:

Item	Amount
Employee rate (additional)	4.0%
Maximum pensionable earnings (YAMPE)	$81,200
Earnings range	$71,300 – $81,200
Maximum employee contribution	$396.00
Maximum self-employed contribution	$792.00

If your employment income is between $71,300 and $81,200, you pay CPP2 on the amount above $71,300, at 4%, up to the maximum.

EI — Employment Insurance

2025 figures (residents outside Quebec):

Item	Amount
Employee rate	1.66%
Maximum insurable earnings	$65,700
Maximum employee premium	$1,095.12
Maximum employer premium	$1,533.17 (1.4× employee)

EI premiums apply only to employment income; self-employed individuals do not pay EI unless they opt in to special benefits. Quebec residents pay a reduced EI rate because part of their coverage is administered through provincial parental insurance.

How the credits work on your return

Both CPP and EI generate non-refundable tax credits on your return at the 15% federal lowest-bracket rate plus your provincial lowest rate. For a typical Ontario taxpayer paying maximum CPP and EI in 2025, the federal + provincial credit is roughly (3,867.50 + 1,095.12) × (15% + 5.05%) ≈ $995 — a meaningful offset against the cash outflow.

Looking ahead

CPP and CPP2 maximum pensionable earnings are indexed each year using StatCan’s wage-growth measures. The EI rate is set annually by the Canada Employment Insurance Commission. New figures are typically published in early November for the following year.