Here is why your net pay may be lower in January

Friday, January 07, 2022

Canada Pension Plan (CPP) and Employment Insurance (EI) deductions have yearly maximum contribution amounts. Once these limits are reached during the calendar year, the deductions stop for the rest of the calendar year.

Contributions to CPP and EI will commence again in January of each year which will reduce net pay.

What are the 2022 rates?

These rates are set nationally by the Canada Revenue Agency (for CPP) and the Canada Employment Insurance Commission (for EI). 

  • CPP has increased from 5.45% to 5.7%
  • The maximum annual pensionable earnings (YMPE) has gone from $61,600 to $64,900
  • EI has stayed the same at a 1.58% premium rate