CPP and EI maximums for 2026: rates, ceilings and employer costs

CPP max 2026 and EI max 2026: the short answer

For 2026, the maximum pensionable earnings (the YMPE) are $74,600 and the basic exemption is $3,500. The CPP rate is 5.95% each for the employee and the employer, so the most an employee pays on the base and first additional CPP is $4,230.45, and the employer matches that amount. A self-employed person pays both halves, up to $8,460.90.

The second additional CPP (CPP2) applies to earnings between $74,600 and $85,000, the additional maximum pensionable earnings (the YAMPE). The rate is 4%, the most an employee or an employer pays is $416 each, and the self-employed maximum is $832.

For EI outside Quebec, the 2026 maximum insurable earnings are $68,900 and the employee premium rate is 1.63%, to a maximum of $1,123.07. The employer premium is normally 1.4 times the employee premium, to a maximum of $1,572.30. These figures apply to Ontario employees and employers.

2026 CPP contribution rate and maximums

The 2026 CPP contribution rate is 5.95% for the employee and 5.95% for the employer, applied to pensionable earnings above the $3,500 basic exemption and up to $74,600. The earnings in between, $71,100, are the maximum contributory earnings. Multiply $71,100 by 5.95% and you get the $4,230.45 maximum.

Employee and employer each pay up to $4,230.45, so the employer’s cost for one fully contributing employee is the same amount on top of wages. Someone who is self-employed carries both shares, which is $8,460.90 at the maximum, and reports it on the personal return.

The $3,500 basic exemption is an annual amount, so on a payroll the portion that applies to each pay period is subtracted before the rate is applied. The CRA publishes the exemption by pay period. Payroll software handles this; the annual figures above are the check on the result.

CPP2: the second additional contribution

CPP2 started in 2024 and applies only to earnings above the YMPE. For 2026, it covers earnings from $74,600 up to $85,000, which is a band of $10,400. At 4%, that produces the $416 maximum for each of the employee and the employer, and $832 for a self-employed person.

If you earn less than $74,600, you pay no CPP2. If you earn between $74,600 and $85,000, you pay 4% on the amount above $74,600. Above $85,000, nothing more is owed, so the maximum for a fully contributing employee is $4,230.45 plus $416, or $4,646.45.

EI maximum 2026, employee rate and employer 1.4 times

EI premiums stop once insurable earnings reach $68,900. At 1.63%, the employee maximum is $1,123.07. The employer pays 1.4 times the employee premium, which brings the employer maximum to $1,572.30. The 1.4 multiple is the standard one; the CRA also refers to a reduced employer rate in some cases, so check its payroll guidance if you think it applies to you.

Unlike CPP, the EI calculation has no basic exemption, so premiums apply from the first dollar of insurable earnings up to the maximum. Quebec has its own EI rate and maximums, listed separately by the CRA; this page covers the rest of Canada, including Ontario.

This page does not cover EI for self-employed people, which works differently from employee premiums. Ask the CRA or your accountant if it is relevant to you.

Worked examples for 2026

These examples are illustrative and use round numbers. First, an employee earning $60,000 for the year. CPP is ($60,000 minus $3,500) times 5.95%, or $3,361.75. EI is $60,000 times 1.63%, or $978.00. The employer matches the CPP at $3,361.75 and pays EI of $978.00 times 1.4, or $1,369.20.

Second, an employee earning $80,000. CPP reaches the $4,230.45 maximum. CPP2 is ($80,000 minus $74,600) times 4%, or $216. EI is capped at $1,123.07 because earnings are above $68,900. The employer matches the CPP and CPP2 and pays $1,572.30 in EI.

Third, an employee earning $100,000. CPP is $4,230.45, CPP2 is $416 and EI is $1,123.07, a total of $5,769.52 withheld from the employee over the year. The employer’s share is $4,230.45 plus $416 plus $1,572.30, or $6,218.75, in addition to wages. Employer payroll cost is more than gross pay for this reason.

Fourth, a self-employed person with $80,000 of net self-employment income. CPP is $8,460.90 at the maximum and CPP2 is $432, which is 4% on $5,400 for each of the two shares. These are separate from income tax.

When 2027 figures are expected

On October 24, 2026, the CRA’s CPP and CPP2 tables had no 2027 row, and its limits table showed the 2027 YMPE and YAMPE as blank. These figures are not yet officially published there, so this page gives no 2027 CPP ceiling, rate or maximum. Do not use an estimate for payroll.

The CRA’s EI page does list 2027 figures: maximum insurable earnings of $70,800 and an employee rate of 1.64%, for a maximum employee premium of $1,161.12 and an employer maximum of $1,625.57 outside Quebec. Those apply from January 1, 2027. Until then, 2026 rates apply to pay dates in 2026.

Check the CRA pages again before year-end for the 2027 CPP and CPP2 figures before you update your payroll software or budget.

Using these numbers in payroll and budgeting

For budgeting a hire, add the employer CPP, CPP2 and EI to the wage, along with other costs such as vacation pay, workers’ compensation and any benefits. The employer payroll cost tool on this site shows the employer side for a given salary and uses the same 2026 figures.

Keep in mind that the maximums apply per employer. If someone changes jobs partway through the year, each employer must keep withholding until its own employee reaches the maximum, so the employee may have overpaid across jobs. Ask your accountant how this affects a mid-year hire or departure.

Remittances, T4 slips and the first pay run are covered in the guide to hiring your first employee. For the question of when CPP applies to your own business income, see the guide to self-employed taxes in Ontario.