CPP, CPP2, and EI Calculator
Canadian payroll source deductions done right. Handles CPP2 at 4% (not 5.95%), Quebec's QPP + QPIP + reduced EI, and the pro-rated basic exemption — all for 2026.
Inputs
Covers CPP / CPP2 / EI (or QPP / QPP2 / QPIP + reduced EI for Quebec). Federal and provincial income tax are out of scope — those depend on TD1 credits and personal situation.
Per pay period
26× per yearGross
$2,500.00
CPP employee (avg)
$140.74
CPP2 employee (avg)
$0.00
not reached
EI employee (avg)
$41.50
Annual totals
Employee deductions
$4,738
Taken off the employee's pay
Employer remittance
$5,170
What the employer sends to CRA / RQ
Net after source deductions
$60,262
Pre-tax. Income tax is separate.
Rates used (2026)
EI, QPIP, and QPP rates are projections for 2026 and will be confirmed by CRA and Revenu Québec in their November rate bulletins. YMPE and YAMPE are confirmed.
What this calculator covers
Source deductions that are purely a function of gross pay and the employee's province of work: CPP, CPP2, and EI everywhere outside Quebec; QPP, QPP2, QPIP, and a reduced EI rate inside Quebec. The basic $3,500 CPP/QPP exemption is pro-rated across pay periods the way the CRA requires.
What it does not cover: federal and provincial income tax (depends on TD1 credits and individual circumstances), taxable benefits that change pensionable earnings, pre-tax deductions like RRSP contributions, union dues, garnishments, or RCA contributions. For the full pay-run math on variable compensation, hourly hours, bonuses, and taxable benefits — you need a payroll system.
Rates below are correct for 2026. EI, QPIP, and Quebec-specific rates are projections that will be confirmed by the CEIC and Revenu Québec in their November rate bulletins; YMPE and YAMPE are confirmed.
Frequently asked questions
How do I calculate CPP contributions in Canada?
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CPP is calculated as 5.95% of pensionable earnings between the $3,500 basic exemption and the Year's Maximum Pensionable Earnings (YMPE). For 2026 the YMPE is $74,600, so the maximum annual employee CPP contribution is $4,230.45. The employer matches every dollar. The basic exemption is pro-rated across pay periods — a weekly employee gets 1/52 of $3,500 each cheque.
What is CPP2 and when does it apply?
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CPP2 is a second, additional CPP contribution on earnings between the YMPE and the Year's Additional Maximum Pensionable Earnings (YAMPE). For 2026 that is $74,600 to $85,000. The rate is 4.00% — not 5.95% — for both the employee and the employer. Max annual employee CPP2 is $416. It only applies to employees earning above the YMPE in a given year.
Do Quebec employees pay CPP?
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No. Quebec employees pay into the Quebec Pension Plan (QPP) instead of CPP. The rates are higher (6.40% base vs CPP's 5.95%), remittances go to Revenu Québec rather than the CRA, and Quebec also runs its own parental insurance plan (QPIP) alongside a reduced federal EI rate. Province of work determines which plan applies — not the employee's home province.
What is the EI rate in 2026?
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For 2026, the estimated EI premium rate is 1.66% for employees outside Quebec and 1.31% for Quebec (reduced because QPIP runs separately). The employer pays 1.4× the employee amount. Max insurable earnings are projected at $65,500. Final rates are confirmed by the CEIC in the November rate bulletin.
Does this calculator include federal and provincial income tax?
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No. Federal and provincial income tax depend on the employee's TD1 personal tax credits, province of work, and personal situation — they cannot be accurately computed from salary alone. This calculator covers source deductions that are purely a function of gross pay and province: CPP, CPP2, EI, QPP, QPP2, and QPIP.
If you run this math every pay period, you are ready for payroll software.
Hibiscus HR applies these rules on every pay run, for every employee, in every province — and writes it all to an audit trail. No more spreadsheet columns from 2023 that don't know CPP2 exists.