Canadian payslip guide
CPP, CPP2 and EI explained
Canadian employees commonly see CPP and EI deductions alongside income tax. CPP2 is an additional contribution that can apply at higher earnings.
In short
CPP helps fund retirement, disability and survivor benefits. EI helps fund employment-insurance benefits. Both have annual earnings limits, so the deductions can stop or reduce later in the year once you reach their maximums.
What CPP is
The Canada Pension Plan is a public pension programme. Employees normally contribute through payroll and employers make a matching contribution. Self-employed people generally pay both portions when they file their return.
For 2026, regular CPP contributions apply after the basic exemption and up to the year's maximum pensionable earnings. The exact amount on a payslip depends on your pay frequency and what has already been earned with that employer during the year.
What CPP2 means
CPP2 is the second additional CPP contribution. It applies only to earnings between the first and second annual earnings ceilings, so many employees will not see it. It is separate from the regular CPP line because it is part of the CPP enhancement.
What EI is
Employment Insurance premiums are deducted from insurable employment income up to the annual maximum. EI can support people who lose work and, in eligible situations, maternity, parental, sickness and caregiving benefits. The employer normally pays an additional EI amount that is not deducted from the employee's pay.
Why deductions can change during the year
CPP, CPP2 and EI are capped annually. If you remain with one employer and reach a cap, that deduction may no longer appear on later payslips. Multiple jobs can make the pattern less straightforward because each employer generally deducts based on the pay it makes.
See the CRA's CPP contribution rates and limits and EI premium rates and maximums. Use the Canada take-home pay calculator for an annual Ontario or Alberta estimate.