Canadian payroll guide
What are the CPP and EI maximums in Canada for 2026?
CPP, CPP2 and EI are not open-ended deductions. They are capped each year, which is why they can stop or change later in the year.
In short
As earnings rise, employee contributions continue only until the relevant annual maximum is reached. That makes pay frequency and year-to-date earnings important when you are checking a payslip.
Why a maximum matters
Maximums prevent contributions from increasing forever. Once an employee reaches the annual ceiling for CPP, CPP2 or EI, later pays may stop that deduction until the new payroll year begins.
CPP, CPP2 and EI together
Regular CPP starts first, CPP2 applies only in the higher earnings band and EI has its own maximum insurable earnings limit. Each deduction is calculated separately, so the total change in take-home pay can vary through the year.
What to check if your pay looks unusual
If a deduction stops part-way through the year, the most common reason is that the annual cap has been reached. If the deduction seems too high, compare the payslip with the employee’s year-to-date earnings, pay frequency and province of employment.
See the CPP, CPP2 and EI guide for the deduction basics, the CPP2 explainer for the higher earnings band, and the Canada take-home pay calculator to estimate net pay after those deductions.