- In 2026 employees pay 5.95% CPP on earnings up to $74,600, after a $3,500 basic exemption, to a maximum of $4,230.45.
- CPP2 adds 4% on 2026 earnings between $74,600 and $85,000, to a maximum of $416.
- EI premiums are 1.63% of insurable earnings up to $68,900 in 2026, a maximum of $1,123.07 (1.30% and $895.70 in Quebec).
- Ontario, BC, Alberta and Quebec all require your employer to show each deduction and your gross and net pay on every pay statement.
Checked October 2026
Gross pay, deductions and net pay
Every pay stub follows the same logic. Gross pay is everything you earned in the pay period before anything comes off: salary or hourly wages, overtime, vacation pay, commissions and taxable benefits. Deductions are subtracted from it. Net pay is the amount that actually arrives by direct deposit or cheque.
Deductions fall into two groups. Statutory deductions are the ones the law requires: Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and income tax. Voluntary or workplace deductions are the ones tied to your job or choices: union dues, group benefits, a workplace pension, or RRSP contributions made through payroll.
Most stubs show two columns of numbers: this pay period and year to date (YTD). The current column explains this deposit. The YTD column is a running total since January 1, and it’s the one that matters at tax time.
What your province says must be on it
Pay statements are set by provincial employment standards, so the exact list varies. These are the rules from four provincial governments. All four allow an electronic stub if you can view it privately and print or keep a copy.
| Province | When you get it | Must show |
|---|---|---|
| Ontario | On or before each pay day | Pay period, wage rate, gross wages and how they were calculated, amount and purpose of each deduction, room or board amounts, net wages |
| British Columbia | Each payday | Employer name and address, hours worked, wage and overtime rates, overtime hours, each deduction and its purpose, gross and net wages, time bank balance |
| Alberta | End of each pay period | Pay period, regular and overtime hours, wage and overtime rates, earnings itemized, each deduction and the reason, time off in lieu of overtime |
| Quebec | At each pay | Employer and worker names, job title, work period, payment date, hours and rates, bonuses or commissions, gross wages, each deduction, net wages, tips |
CPP and CPP2: your pension contributions
CPP is the line most people notice first. In 2026 you pay 5.95% of your pensionable earnings, and your employer pays the same amount again. The first $3,500 of the year is exempt, but payroll doesn’t skip your first few cheques. The CRA has employers spread the exemption across the year: $134.61 per pay if you’re paid biweekly with 26 pays, $67.30 weekly or $291.67 monthly.
Contributions stop for the year once you reach the maximum. In 2026 that’s $4,230.45, which you hit when earnings reach $74,600. If you earn more, a second line called CPP2 kicks in at 4% on earnings between $74,600 and $85,000, to a maximum of $416. Your employer matches CPP2 too.
| Deduction | Employee rate | Earnings ceiling | Yearly maximum |
|---|---|---|---|
| CPP | 5.95% | $74,600 (first $3,500 exempt) | $4,230.45 |
| CPP2 | 4% | $74,600 to $85,000 | $416 |
| EI | 1.63% | $68,900 | $1,123.07 |
| EI (Quebec) | 1.30% | $68,900 | $895.70 |
Source: CRA payroll rate tables for 2026. Employers match CPP and CPP2 and pay 1.4 times your EI premium.
EI, income tax and the rest
EI premiums are 1.63% of insurable earnings in 2026, up to $68,900 of earnings. That caps your premium at $1,123.07. Quebec workers pay a lower rate, 1.30%, to a maximum of $895.70. Your employer pays 1.4 times your premium on top.
Income tax is usually the largest deduction. It combines federal and provincial tax and depends on your pay, your province and the TD1 forms you filled in when you started. The TD1 tells payroll which credits to apply, such as the basic personal amount. If you want more tax taken off, you can file a new TD1.
- Union dues: set by your union. Dues you aren’t reimbursed for reduce the pay that income tax is calculated on.
- Pension plan (RPP): your share of a workplace pension. It also reduces the pay that tax is calculated on.
- RRSP through payroll: a group RRSP contribution taken from your pay. When your employer can reasonably expect you to deduct it, less tax comes off each cheque.
- Group benefits: health, dental or life insurance premiums you share with your employer.
- Taxable benefits: items like an employer-paid perk can appear as income even though no cash changes hands.
A sample pay stub, worked through
Here’s a simple biweekly stub for someone earning $65,000 a year outside Quebec, paid 26 times. CPP and EI use the 2026 CRA rates. The income tax, RRSP, union and benefits figures are assumed round numbers for illustration, so your own amounts will differ.
| Line | This pay | Year to date |
|---|---|---|
| Gross pay | $2,500.00 | $25,000.00 |
| CPP: ($2,500 minus $134.61) x 5.95% | $140.74 | $1,407.40 |
| EI: $2,500 x 1.63% | $40.75 | $407.50 |
| Income tax, federal and provincial (assumed) | $250.00 | $2,500.00 |
| Group RRSP (assumed) | $100.00 | $1,000.00 |
| Union dues (assumed) | $30.00 | $300.00 |
| Group benefits (assumed) | $25.00 | $250.00 |
| Net pay | $1,913.51 | $19,135.10 |
At $65,000 a year this person never reaches the CPP or EI ceiling, so both deductions continue all year.
Someone earning more would see CPP and EI vanish late in the year once the YTD column reaches $4,230.45 and $1,123.07. Their net pay rises for the last few cheques, then drops again in January when the counters reset.
How to spot an error
- Check your hours and rateMultiply your hours by your rate, or divide your salary by the number of pays. Overtime should show its own rate.
- Recalculate CPP and EITake gross pay, subtract the per-pay CPP exemption and multiply by 5.95%. For EI, multiply gross pay by 1.63%. Pennies of rounding are normal.
- Look for deductions you don’t recogniseEvery province in our table requires each deduction and its purpose to be listed. Ask payroll about any you didn’t agree to.
- Watch the YTD maximumsIf you changed jobs, each employer deducts CPP and EI from zero. You can end up paying more than the yearly maximum, which is sorted out when you file.
Why year-to-date matters at tax time
Your T4 slip is built from the same YTD totals: employment income, CPP, CPP2, EI, income tax withheld, union dues and pension contributions. When you file, the CRA compares the tax already taken off with the tax you owe. If more came off than you owe, you get a refund, and your Notice of Assessment confirms it.
YTD figures also help you plan. A group RRSP line shows how much of your RRSP room you’ve used this year. You’ll need your social insurance number on file with payroll for any of this to reach your CRA record, and the net pay line is what your direct deposit should match.
Frequently Asked Questions
What is the difference between gross and net pay?
Gross pay is what you earned before deductions. Net pay is what’s left after CPP, EI, income tax and any workplace deductions, and it’s the amount deposited to your account.
How much CPP comes off my pay in 2026?
5.95% of pensionable earnings after a per-pay share of the $3,500 basic exemption, until you’ve paid $4,230.45 for the year.
What is CPP2 on my pay stub?
A second CPP contribution of 4% on 2026 earnings between $74,600 and $85,000. The most you pay is $416, and your employer matches it.
How much EI do I pay in 2026?
1.63% of insurable earnings up to $68,900, a maximum of $1,123.07. In Quebec the rate is 1.30% and the maximum is $895.70.
Why did my pay go up late in the year?
You probably reached the yearly CPP or EI maximum, so those deductions stopped. They start again in January.
What does YTD mean on a pay stub?
Year to date: the running total of each line since January 1. Your December YTD figures should match your T4.
Does my employer have to give me a pay stub?
Yes. Ontario, BC, Alberta and Quebec all require a pay statement each pay showing gross pay, each deduction and net pay. It can be electronic if you can view and keep it.
Why is my income tax deduction different from a co-worker’s?
Tax withheld depends on your pay, your province and the credits you claimed on your TD1 forms. Union dues, pension and payroll RRSP contributions also lower the pay that tax is calculated on.
I paid too much CPP after changing jobs. Do I get it back?
Each new employer starts its count at zero, so you can go over the yearly maximum. The overpayment is worked out when you file your return.
How long should I keep pay stubs?
At least until your T4 arrives and matches them. Many people keep the last stub of each year with their tax records.
Try this next
Sources, checked October 2026
- CRA: CPP contribution rates, maximums and exemptions canada.ca
- CRA: Second additional CPP (CPP2) contribution rates and maximums canada.ca
- CRA: Calculate CPP contributions deductions canada.ca
- CRA: EI premium rates and maximums canada.ca
- CRA: About the deduction of income tax canada.ca
- Ontario: Your guide to the Employment Standards Act, payment of wages ontario.ca
- British Columbia: Wage statements, ESA Part 3, Section 27 www2.gov.bc.ca
- Alberta: Payment of earnings alberta.ca
- CNESST: Pay slip cnesst.gouv.qc.ca
General information for Canadians, not financial, tax or legal advice. Rules and menus change, so confirm details with your bank, lender or the Government of Canada. See our methodology.