Canada Paycheck Calculator

What are CPP and EI deductions on a Canadian paycheck?

CPP (Canada Pension Plan): 5.95% of pensionable earnings between $3,500 and $68,500 — max contribution $3,867.50/year. EI (Employment Insurance): 1.66% of insurable earnings up to $63,200 — max premium $1,049.12/year. Both are mandatory for most employees. Quebec residents contribute to QPP (instead of CPP) and QPIP (instead of federal EI).

How often are Canadians paid?

The most common pay frequency in Canada is bi-weekly (26 pays/year). Semi-monthly (24 pays) and weekly (52 pays) are also common. Monthly pay (12 pays) is typical for salaried government and professional positions. Statutory deductions (CPP, EI, income tax) are calculated each pay period based on the annualized equivalent.

Do all Canadian provinces have the same paycheck deductions?

Federal deductions (income tax, CPP, EI) apply nationwide, but provincial income tax varies dramatically. Quebec has separate provincial tax forms and contributes to QPP and QPIP instead of CPP and EI. Quebec residents see different deduction line items but similar total amounts. Alberta has no provincial sales tax but does have provincial income tax.

How does RRSP affect my paycheck?

RRSP contributions don't automatically reduce paycheck withholding unless your employer adjusts your TD1 form. You can ask your employer to withhold less tax by submitting a T1213 form (request for a reduction in withholding), showing your expected RRSP contributions. Otherwise, you'll get the RRSP tax savings as a refund when you file your return.