Canadian payslip guide
What is CPP2 in Canada?
CPP2 is the second additional Canada Pension Plan contribution. It is separate from regular CPP and only applies once earnings move into the higher CPP range.
In short
Most employees will see regular CPP first, then CPP2 may start only after earnings pass the first CPP ceiling. That is why the deduction can look different later in the year.
Regular CPP versus CPP2
Regular CPP applies to pensionable earnings after the basic exemption. CPP2 is an additional contribution created by the CPP enhancement and only affects earnings above the first ceiling up to the second ceiling.
Why it matters for take-home pay
CPP2 reduces net pay for higher earners, but only while the earnings remain in the CPP2 band. Once annual pensionable earnings move beyond the ceiling, the contribution stops for the rest of the year.
What to look for on a payslip
A payslip may show CPP and CPP2 as separate lines or combine them into one payroll deduction. The name used by payroll can vary, so compare the deduction with your earnings and pay frequency rather than relying on the label alone.
Québec employees
In Québec, employees normally pay QPP instead of CPP, so CPP2 does not apply in the same way. Québec payroll uses a separate source-deduction system.
Use the CPP, CPP2 and EI guide for the wider payroll context, the CPP and EI maximums guide for annual limits, or the Canada take-home pay calculator for a supported provincial estimate.