Canada Pension Plan (CPP) Contribution Rates

Year	Maximum Pensionable Earnings (YMPE)	Rate	Employee/ Employer Maximum	Self- Employed Maximum
2019	$57,400	5.10%(1)	$2,748.90	$5,497.80
2018	55,900	4.95%	2,593.80	5,187.60
2017	55,300	4.95%	2,564.10	5,128.20
2016	54,900	4.95%	2,544.30	5,088.60
2015	53,600	4.95%	2,479.95	4,959.90
2014	52,500	4.95%	2,425.50	4,851.00
2013	51,100	4.95%	2,356.20	4,712.40
2012	50,100	4.95%	2,306.70	4,613.40
2011	48,300	4.95%	2,217.60	4,435.20
2010	47,200	4.95%	2,163.15	4,326.30
2009	46,300	4.95%	2,118.60	4,237.20
2008	44,900	4.95%	2,049.30	4,098.60
2007	43,700	4.95%	1,989.90	3,979.80

Note:  The basic annual exemption is $3,500.  The self-employed rate is 2x the employee rate.

(1) CPP Contributions on the Tax Return

The employee maximum for the non-refundable tax credit for CPP premiums will be ($57,400 – $3,500) x 4.95% = $2,668.05.  

The remaining amount of the maximum, $2,748.90 – $2,668.05 = $80.85 (also = ($57,400 – $3,500) x 0.15%), is allowed as a deduction from income, not as a tax credit. See Enhanced Canada Pension Plan below.

In the Detailed Canadian Income Tax Calculator for 2019, the total CPP + Enhanced CPP for employment income is shown near the bottom of the calculator, in the calculation of Total taxes, clawbacks, CPP/EI premiums.  Since the CPP on self-employment income is calculated on the tax return and remitted in the same manner as income tax, it is shown separately and included in the total payable by the taxpayer.

Enhanced Canada Pension Plan

Starting in 2019, there is an additional contribution of 0.15% x the YMPE, which is included in the 5.10% above.  This is called the “first additional contribution” for the Enhanced CPP. On the tax return, the additional contribution will be allowed as a deduction.  Employers will also pay the 0.15% additional contribution.  Self-employed will pay both the employee and employer additional contributions, and will be able to deduct 100% of the additional contribution on their tax return.  The first additional contribution will increase each year, so that in 2024 the total rate will be 5.95%, as follows:

     2019     0.15%    +4.95% = 5.10% total rate

     2020     0.30%    +4.95% = 5.25%

     2021     0.50%    +4.95% = 5.45%

     2022     0.75%    +4.95% = 5.70%

     2023     1.00%    +4.95% = 5.95%

In 2024 there will be an additional maximum pensionable earnings (YAMPE) calculated, which will be 107% x the YMPE.  In 2025 the YAMPE will be 114% x the YMPE.  The contribution amount (2nd additional contribution) will be 4% of the difference between the YAMPE and the YMPE.  Self-employed will pay 8%.  The 2nd additional contribution will also be deductible from income.

Contributors who make more than the YMPE are not required or permitted to make additional CPP contributions.

Quebec Pension Plan (QPP) Contribution Rates

The QPP factors are the same as the CPP factors up to and including 2011.  However, Revenue Quebec announced changes to the QPP contribution rate.  The employee and employer rates each increased by 0.075% per year starting in 2012, until each of these rates reached 5.4% in 2017.  The self-employed rate is 2x the employee rate.

Year	Maximum Pensionable Earnings (YMPE)	Rate	Employee/ Employer Maximum	Self- Employed Maximum
2019	$57,400	5.550%	$2,991.45	$5,982.90
2018	55,900	5.400%	2,829.60	5,659.20
2017	55,300	5.400%	2,797.20	5,594.40
2016	54,900	5.325%	2,737.05	5,474.10
2015	53,600	5.250%	2,630.25	5,260.50
2014	52,500	5.175%	2,535.75	5,071.50
2013	51,100	5.100%	2,427.60	4,855.20
2012	50,100	5.025%	2,341.65	4,683.30
2011	48,300	4.95%	2,217.60	4,435.20
2010	47,200	4.95%	2,163.15	4,326.30
2009	46,300	4.95%	2,118.60	4,237.20
2008	44,900	4.95%	2,049.30	4,098.60
2007	43,700	4.95%	1,989.90	3,979.80

Note:  The basic annual exemption is $3,500.

Quebec will enhance the QPP in the same manner to which the CPP is being enhanced.  The resulting rates will be:

     2019     0.15%    +5.40% = 5.55% total rate

     2020     0.30%    +5.40% = 5.70%

     2021     0.50%    +5.40% = 5.90%

     2022     0.75%    +5.40% = 6.15%

     2023     1.00%    +5.40% = 6.40%

The QPP will use the same YMPE and YAMPE as the CPP, and it will be increased in the same manner, using the same 2nd additional contribution rate, as the CPP.

Quebec Pension Plan information:

    – Source deductions and contributions – for calculating payroll deductions

    – TP-1015.G-V – Guide for Employers:  Source Deductions and Contributions

    – Maximum pensionable salary or wages and QPP contribution rate

    – Quebec Pension Plan – information about retirement pension, disability pension, and survivors’ benefits

Employment Insurance (EI) Premium Rates

The 2020 EI premium rate is $1.58 per $100 of insurable earnings, down 2.5% from the 2019 rate of $1.62.  Maximum insurable earnings (MIE) for 2020 is $54,200, up 2.1% from $53,100 in 2019.

Year	Maximum Insurable Earnings (MIE)	Employee Rate	Employee Maximum	Employer Rate	Employer Maximum	Self- Employed Rate	Self- Employed Minimum Earnings (1)	EI Clawback Threshold (2)
2020	$54,200	1.58%	$856.36	2.212%	$1,198.90	1.58%	$7,279	$67,750
2019	53,100	1.62%	860.22	2.268%	1,204.31	1.62%	7,121	66,375
2018	51,700	1.66%	858.22	2.324%	1,201.51	1.63%	6,947	64,625
2017	51,300	1.63%	836.19	2.282%	1,170.67	1.63%	6,888	64,125
2016	50,800	1.88%	955.04	2.632%	1,337.06	1.88%	6,820	63,500
2015	49,500	1.88%	930.60	2.632%	1,302.84	1.88%	6,645	61,875
2014	48,600	1.88%	913.68	2.632%	1,279.15	1.88%	6,515	60,750
2013	47,400	1.88%	891.12	2.632%	1,247.57	1.88%	6,342	59,250
2012	45,900	1.83%	839.97	2.562%	1,175.96	1.83%	6,222	57,375
2011	44,200	1.78%	786.76	2.492%	1,101.46	1.78%	6,000	55,250
2010	43,200	1.73%	747.36	2.422%	1,046.30	1.73%	n/a	54,000
2009	42,300	1.73%	731.79	2.422%	1,024.51	n/a	n/a	52,875
2008	41,100	1.73%	711.03	2.422%	995.44	n/a	n/a	51,375
2007	40,000	1.80%	720.00	2.520%	1,008.00	n/a	n/a	50,000
2006	39,000	1.87%	729.30	2.618%	1,021.02	n/a	n/a	48,750
2005	39,000	1.95%	760.50	2.730%	1,064.70	n/a	n/a	48,750
2004	39,000	1.98%	772.20	2.772%	1,081.08	n/a	n/a	48,750

(1) This is the minimum self-employment earnings that must have been earned in the previous year in order to claim benefits.
(2) EI clawback threshold is 1.25 x maximum insurable earnings

See our article on EI for the Self-Employed.

The 2020 rates are outlined on the 2020 Employment Insurance Premium Rate page.

EI Basic Exemption

Although there is no basic exemption for employment insurance, if an employee’s insurable earnings are $2,000 or less during any year, their EI premiums are refunded in whole.