Last Updated: May 2026
Canadian Payroll Tax Statistics 2026: CPP, EI Rates, Employer Costs & Trends
This report provides essential Canadian payroll tax statistics for 2026, focusing on contribution rates for the Canada Pension Plan (CPP) and Employment Insurance (EI), the overall costs to employers, and emerging trends that impact both businesses and employees. Understanding these figures is vital for payroll management and financial planning.
Canada Pension Plan (CPP) Contribution Rates
5.95%
employee and 5.95% employer CPP rate, max pensionable earnings $71,300.
Source: Canada Revenue Agency (CRA)
4%
CPP2 contribution rate on earnings $68,500-$73,200.
Source: Finance Canada
$632B
CPP fund AUM (Q4 2025).
Source: CPP Investments
21.9 million
CPP contributors (2023).
Source: Statistics Canada
Employment Insurance (EI) Rates
1.64%
employee EI, 2.296% employer EI, up to $63,200 insurable earnings.
Source: Employment and Social Development Canada (ESDC)
$23.4B
EI benefits paid in 2022-23.
Source: ESDC Annual Report
13.5%
total employer payroll burden above wages for CPP+EI+benefits.
Source: Statistics Canada
28M+
T4 slips issued annually (2022-23).
Source: CRA
Total Employer Payroll Burden
~13.5%
total employer payroll burden above wages for CPP+EI+benefits.
Source: Statistics Canada
5.95%
employer CPP rate.
Source: CRA
2.296%
employer EI rate.
Source: ESDC
4%
CPP2 contribution rate.
Source: Finance Canada
CPP Fund AUM
$632B
CPP fund AUM (Q4 2025).
Source: CPP Investments
21.9 million
CPP contributors (2023).
Source: Statistics Canada
$71,300
max pensionable earnings for CPP.
Source: CRA
$1,433/month
maximum CPP retirement benefit at 65 (2026).
Source: ESDC
CPP Contributors
21.9 million
CPP contributors (2023).
Source: Statistics Canada
5.95%
employee CPP rate.
Source: CRA
$71,300
max pensionable earnings for CPP.
Source: CRA
$632B
CPP fund AUM (Q4 2025).
Source: CPP Investments
EI Benefits Paid
$23.4B
EI benefits paid in 2022-23.
Source: ESDC Annual Report
1.64%
employee EI rate.
Source: ESDC
$63,200
insurable earnings max for EI.
Source: ESDC
2.296%
employer EI rate.
Source: ESDC
Average and Maximum CPP Benefits
$831/month
average CPP retirement benefit (2025).
Source: Statistics Canada
$1,433/month
maximum CPP retirement benefit at 65 (2026).
Source: ESDC
$9,972/year
average annual CPP retirement benefit (2025).
Source: Statistics Canada
21.9 million
CPP contributors (2023).
Source: Statistics Canada
T4 Slips Issued Annually
28M+
T4 slips issued annually (2022-23).
Source: CRA
13.5%
total employer payroll burden above wages.
Source: Statistics Canada
5.95%
employee CPP rate.
Source: CRA
1.64%
employee EI rate.
Source: ESDC
Frequently Asked Questions
What are the Canadian Pension Plan (CPP) contribution rates for 2026?
For 2026, the CPP contribution rate is 5.95% for both employees and employers, applied to maximum pensionable earnings of $71,300.
What is the Employment Insurance (EI) rate for employees in 2026?
The employee EI rate for 2026 is 1.64%, with employers contributing 2.296%, up to $63,200 in insurable earnings.
What is the total payroll burden for employers in Canada?
On average, the total payroll burden for employers, including CPP, EI, and other benefits, amounts to approximately 13.5% above the employee's wages.
How many Canadians contribute to the CPP?
As of 2023, there were 21.9 million contributors to the Canada Pension Plan, reflecting its broad coverage across the Canadian workforce.
What is the maximum CPP retirement benefit a Canadian can receive at age 65 in 2026?
The maximum CPP retirement benefit for individuals commencing benefits at age 65 in 2026 is $1,433 per month.
📎 How to cite this page
Capital Tax Brief. (2026). Canadian Payroll Tax Statistics 2026: CPP, EI Rates, Employer Costs & Trends. https://capitaltaxbrief.com/stats/canadian-payroll-tax-statistics-2026.html