CPP and EI Maximum Contributions 2026: The Full Numbers

For 2026, the maximum employee CPP contribution is $4,230.45, the maximum CPP2 contribution is $416.00, and the maximum employee EI premium is $1,123.07 — a combined employee maximum of $5,769.52. Employers match CPP and CPP2 dollar-for-dollar but pay 1.4 times the EI premium, so the combined employer maximum is $6,218.75 per employee. These figures took effect January 1, 2026 and apply across Canada outside Quebec.

The 2026 maximums at a glance

Anyone earning $85,000 or more in pensionable/insurable employment income in 2026 hits every one of these ceilings and pays the maximums shown above. Below $85,000, only the deductions whose band the salary reaches apply — see the threshold breakdown further down.

How the $3,500 CPP exemption works (and why EI has none)

CPP contributions are calculated only on pensionable earnings above $3,500 — the basic exemption is subtracted from annual earnings before the 5.95% rate is applied. On a $74,600 salary that gives $71,100 of pensionable earnings, and 5.95% of $71,100 is $4,230.45.

EI has no equivalent exemption. The 1.63% rate applies to insurable earnings from the very first dollar, up to the $68,900 maximum. A common payroll mistake is applying CPP's exemption logic to EI and understating the premium owed for the year — the two deductions use different bases.

Why CPP2 exists

CPP2, the second additional CPP contribution, was phased in starting 2024 as the last stage of the CPP enhancement, and is fully in effect for 2026. It adds a separate 4.00% rate on earnings above the YMPE, up to a second ceiling — the Year's Additional Maximum Pensionable Earnings (YAMPE) of $85,000 for 2026.

• CPP2 band: $85,000 − $74,600 = $10,400
• Maximum CPP2 (each side): 4.00% × $10,400 = $416.00

CPP2 only affects employees earning more than $74,600. A $70,000 salary owes no CPP2 at all; an $85,000+ salary owes the full $416.00. It is reported separately from base CPP on the T4 — box 16A for employee CPP2, distinct from box 16 for base CPP — because it stops at a different earnings point than base CPP does. For the full mechanics, see CPP2 explained.

What an employer actually remits

An employer withholds the employee share of CPP, CPP2, EI and income tax from each pay run, adds the employer share of CPP, CPP2 and EI, and remits the combined total to the CRA on the schedule assigned to that payroll account. The employer's own maximum per employee — $6,218.75 in statutory CPP/CPP2/EI alone, on top of gross wages and any provincial payroll levy — is the number to budget against when pricing a hire, not just the salary. For the full remittance mechanics and what happens if a remittance is late, see our source deductions employer guide.

In Alberta, there is no provincial payroll tax or employer health tax layered on top of these federal figures. In British Columbia, employers above the Employer Health Tax exemption threshold owe EHT in addition — see our BC Employer Health Tax guide. To model the all-in cost of a hire including the federal maximums above, use the employer payroll cost calculator; employees can check their own net pay with the take-home pay calculator.

What changes at each threshold

• $0 to $3,500 — no CPP owed (basic exemption); EI already applies from the first dollar.
• $3,500 to $68,900 — CPP and EI both apply; this is the widest band and covers most Canadian salaries.
• $68,900 — EI premiums stop for the year; this is the lowest of the three ceilings, so high earners stop paying EI first.
• $68,900 to $74,600 — CPP continues; EI has already maxed out.
• $74,600 — base CPP stops; CPP2 begins on the next dollar.
• $74,600 to $85,000 — only CPP2 applies; base CPP and EI are both already maxed.
• $85,000 and above — every 2026 statutory ceiling is reached; no further CPP, CPP2 or EI is owed for the rest of the year.

Tracking these stop-points per employee (not per employer relationship, and not carried over from a prior job) is where most payroll errors happen — see our CPP, CPP2 and EI explained guide for the full mechanics and self-employed treatment, and our 2027 CPP and EI maximums for what changes next year.

How RN Canada helps

RN Canada runs payroll and payroll-tax compliance for owner-managed companies across Alberta and British Columbia — CRA payroll (RP) account setup, per-employee CPP/CPP2/EI tracking through every threshold above, remittance on the correct schedule, and T4/T4 Summary preparation. Our bookkeeping & payroll service covers the mechanics; our payroll FAQ answers common questions quickly.