CPP and EI contribution limits rise for 2026; CPP2 thresholds increased
Effective January 1, 2026, CPP maximum pensionable earnings rose to $74,600 (from $71,300), and CPP2 applies to earnings between $74,600 and $85,000. EI maximum insurable earnings increased to $68,900, though the employee premium rate decreased slightly to $1.63 per $100.
2026 CPP changes
While the CPP rate stays at 5.95%, the maximum pensionable earnings increase from $71,300 to $74,600, meaning higher earners pay more. This is the Year's Maximum Pensionable Earnings (YMPE) threshold.
Since 2024, an enhanced CPP component (CPP2) applies to higher-income Canadians. For 2026: Pensionable earnings between $74,600 and $85,000 are subject to additional CPP contributions. The CPP2 rate for employees and employers is 4.00%. This creates an extra maximum contribution of $416.00 per employee (and employer) once earnings exceed the YMPE up to $85,000. Employee CPP1 max: $4,230.45. CPP2 max: $416. EI max: $1,123.07. Total employee maximum: $5,769.52.
2026 EI changes
EI premiums actually decrease slightly (from $1.64 to $1.63 per $100), but the maximum insurable earnings increase from $65,700 to $68,900, resulting in higher maximum premiums. Maximum premium paid $1,123.07.
Self-employed workers
Self-employed individuals pay both employee and employer portions, so their base CPP contributions are 11.9% total, plus 8% for CPP2 (for earnings $74,600-$85,000). Maximum contributions: $8,460.90 base CPP + $832.00 CPP2.
What this means for expats and newcomers
If you are working in Canada, check your pay stub to confirm your employer has implemented the correct 2026 thresholds. Higher earners will see increased CPP deductions (up to the new $74,600 limit) plus the CPP2 tier (4% on earnings $74,600–$85,000). These contributions increase your eventual CPP retirement benefit, so they represent forced retirement savings. Quebec residents pay into the Quebec Pension Plan (QPP) instead, with different rates. Track your contributions on your CRA My Service Canada Account to verify accuracy.
Sources
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