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Social security in Canada 2026
Employees pay 5.95% Canada Pension Plan contributions on earnings between CAD 3,500 and 74,600, plus a 4% second-tier contribution on the band up to CAD 85,000 — a 2026 maximum of CAD 4,646.45 all-in.
Employment insurance adds 1.63% on insurable earnings to CAD 68,900 (max CAD 1,123.07), and both charges earn federal tax credits.
At a glance
- top rate
- 5.95% + 4% (pension tiers) + 1.63% (employment insurance)
- entry band
- CAD 3,500 basic exemption for pension contributions
- tax year basis
- Per pay period through payroll
- filing deadline
- Withheld and remitted by the employer monthly
- residency basis
- Employment in Canada; Quebec runs a parallel pension plan
- regime flag
- Self-employed pay both halves of the pension plan (max CAD 9,292.90 in 2026)
Rates
Employee contributions (2026)
| Rate | Base | Applies to |
|---|---|---|
| 5.95% | Pensionable earnings CAD 3,500 – 74,600 | Canada Pension Plan (CPP) — max CAD 4,230.45 |
| 4% | Earnings CAD 74,600 – 85,000 | Second-tier CPP — max CAD 416 |
| 1.63% | Insurable earnings up to CAD 68,900 | Employment insurance (EI) — max CAD 1,123.07 |
| 11.9% + 8% | Same bands | Self-employed — both halves of CPP (max CAD 8,460.90 + 832); EI optional for special benefits |
Thresholds & allowances
- Basic exemptionCAD 3,500
First slice of earnings free of pension contributions
- Tax credits14% federal
Base-rate contributions earn credits; the enhanced portions are deductible instead
- Provincial health premiumsVaries
Some provinces fund health plans via premiums or payroll levies — outside these federal figures
Residency
Residency trigger
Canadian employment brings automatic withholding of both charges, with the employer matching pension contributions and paying 1.4 times the employment-insurance rate.
Non-resident treatment
Totalization agreements with dozens of countries prevent double coverage for cross-border workers; Quebec's parallel pension plan covers work in that province.
Notes
- The all-in employee maximum is about CAD 5,770 a year — light against European systems, but benefits are correspondingly modest.
- The second-tier contributions (2024+) are building an expanded pension replacing 33% of earnings, up from 25%.
- Self-employed people skip employment insurance unless they opt in for maternity and sickness benefits.
- Employer-side matching and payroll taxes are outside this page's scope.
FAQ
What do employees pay in Canada?
5.95% pension contributions on earnings between CAD 3,500 and 74,600, 4% on the next band to CAD 85,000, and 1.63% employment insurance to CAD 68,900 — a combined 2026 maximum near CAD 5,770.
What about the self-employed?
They pay both halves of the pension plan — up to CAD 8,460.90 plus CAD 832 on the second tier in 2026 — with employment insurance optional.
Figures: tax year 2026, compiled from public sources. Not tax advice.