Employee CPP rate 2027
5.75%
5.95% in 2026
EI rate 2027
1.64%
on up to $70,800
Maximum CPP 2027 (est.)
$4,209.00
$4,230.45 in 2026
Total maximum (est.)
$5,798.12
CPP, CPP2 and EI; +$28.60
Rates from Finance Canada and the Canada Employment Insurance Commission. Figures marked est. use PayMetric Labs' own modelled estimate of the 2027 YMPE until CRA publishes it.
CPP and EI 2027 calculator: what changes on your paycheque
One employer, outside Quebec
Change in your deductions, 2027
-$108.07
Less taken from your pay over the year
Per paycheque
-$4.16
Averaged over 26 pays; deductions stop once you max out
Your employer's cost
-$98.10
Matches CPP, pays 1.4 times your EI
| Employee, a year | 2026 | 2027 (est.) |
|---|---|---|
| CPP (base + first additional) | $3,956.75 | $3,823.75 |
| CPP2 | $0.00 | $0.00 |
| EI | $1,123.07 | $1,148.00 |
| Total | $5,079.82 | $4,971.75 |
2027 rates are law (CPP) or confirmed (EI). The 2027 YMPE ($76,700) and YAMPE ($87,400) are PayMetric Labs' own modelled estimate until CRA publishes them in November. Quebec workers pay QPP and a lower EI rate, so this doesn't apply to them.
How the 2027 CPP rate cut works
Your CPP deduction has two layers on the same band of earnings, from $3,500 up to the YMPE. The base CPP rate is 4.95%, and the first additional CPP, phased in from 2019, adds 1%. A second additional layer, CPP2, charges 4% on earnings between the YMPE and a higher ceiling, the YAMPE.
Bill C-30, the Spring Economic Update 2026 Implementation Act, cuts only the base rate: 4.95% to 4.75% for employees and the same for employers, from January 1, 2027. The first additional 1% and CPP2's 4% stay as they are. It received Royal Assent in June, so this is settled, unlike the YMPE (Finance Canada).
The reason is the plan's finances. In its 33rd actuarial report, the chief actuary found that a combined 9.5% is enough to fund the base plan over the long term, against a minimum required rate of 9.22% for 2028 to 2033. Benefits are unchanged: they depend on what you earned, not the rate you paid on it.
| Employee, outside Quebec | 2026 | 2027 |
|---|---|---|
| Employee CPP rate (base + first additional) | 5.95% | 5.75% |
| Basic exemption | $3,500 | $3,500 |
| YMPE (CPP ceiling) | $74,600 | $76,700 (est.) |
| Maximum CPP | $4,230.45 | $4,209.00 (est.) |
| CPP2 rate | 4% | 4% |
| YAMPE (CPP2 ceiling) | $85,000 | $87,400 (est.) |
| Maximum CPP2 | $416.00 | $428.00 (est.) |
| EI rate | 1.63% | 1.64% |
| Maximum insurable earnings | $68,900 | $70,800 |
| Maximum EI | $1,123.07 | $1,161.12 |
| Total employee maximum | $5,769.52 | $5,798.12 (est.) |
Sources: Finance Canada, June 2026; CEIC, September 14, 2026; 2026 figures from CRA. Checked October 4, 2026.
Who pays less and who pays more in 2027
Change in a year's CPP, CPP2 and EI against 2026, one employer, PayMetric Labs' own modelled estimate using a $76,700 YMPE:
| Salary | 2027 total | You | Your employer |
|---|---|---|---|
| $40,000 | $2,754.75 | -$69.00 | -$67.40 |
| $50,000 | $3,493.75 | -$88.00 | -$86.00 |
| $60,000 | $4,232.75 | -$107.00 | -$104.60 |
| $70,000 | $4,971.75 | -$108.07 | -$98.10 |
| $80,000 | $5,502.12 | -$67.40 | -$52.18 |
| $90,000 | $5,798.12 | +$28.60 | +$43.82 |
| $120,000 | $5,798.12 | +$28.60 | +$43.82 |
The saving grows with salary and peaks at about $124 at $68,900, the 2026 EI ceiling. Above that, three things push the other way. EI now applies to $1,900 more of your pay. The higher YMPE puts more of your income into the 5.75% band. And the CPP2 band moves up. Past about $86,700, those outweigh the rate cut.
Being above the ceilings still means your deductions stop part way through the year. Our CPP and EI max-out calculator shows which paycheque that is, and the 2026 max-out guide explains the mechanics.
See your full take-home, tax included
Federal and provincial tax, CPP and EI by province.
Why the saving is smaller after tax
Base CPP contributions and EI premiums aren't deducted from your income; they earn a non-refundable credit at the lowest tax rates, 14% federally plus the provincial lowest rate (5.05% in Ontario). So when you pay less base CPP, your credit shrinks too. The enhanced 1% works differently: it's a deduction, and it isn't changing.
At $70,000 in Ontario, the $133 CPP cut is worth about $108 after the smaller credit, and the extra EI costs about $20. That leaves roughly $87 more take-home a year: real, but about $3.36 a biweekly paycheque.
The 2027 YMPE: our estimate and how it's set
The YMPE isn't a policy choice. The Canada Pension Plan sets it by formula: last year's YMPE, grown by the rise in average weekly earnings for the 12 months to June over the 12 months before, rounded down to the nearest $100. The YAMPE is then 114% of the YMPE, also rounded down.
Using Statistics Canada's average weekly earnings, wages grew about 2.8% in the year to June 2026, slower than the 4.7% that set 2026's jump. That gives a 2027 YMPE of about $76,700 and a YAMPE of $87,400. The same method reproduces 2026's $74,600 exactly and lands within $100 of 2024 and 2025, so treat ours as accurate to a couple of hundred dollars. CRA normally publishes the official figure in early November, and this page will switch to it.
Before January 1, 2027
- Employers: make sure your payroll software takes the January 2027 CRA tables (T4127). The rate change is automatic there, but custom spreadsheets need the new 5.75% and 1.64%.
- Budgeting for staff costs? Most employees cost you a little less in CPP, and those above the ceilings slightly more in EI. Our employer cost calculator covers the full picture.
- Two jobs in 2027? Each employer deducts up to the maximum separately. You get the overpayment back when you file, so don't expect it on your paycheques.
- Planning RRSP contributions? The CPP change doesn't affect your room, but a slightly bigger paycheque is an easy amount to redirect. See the RRSP calculator.
CPP and EI 2027 questions
Is the CPP contribution rate going down in 2027?
Yes. From January 1, 2027, the base CPP rate falls from 4.95% to 4.75% for employees and for employers. With the 1% first additional contribution, the employee rate on earnings up to the YMPE goes from 5.95% to 5.75%. Bill C-30 made it law in June 2026, so it doesn't depend on any further announcement.
What is the maximum CPP contribution for 2027?
About $4,209.00 for CPP, down from $4,230.45, and about $428.00 for CPP2. Both depend on the 2027 YMPE, which CRA publishes in November; these use our estimate of $76,700. A YMPE $100 higher adds $5.75 to the CPP maximum.
Will the cut reduce my CPP pension?
No. Your CPP pension is worked out from your pensionable earnings, not the rate you paid on them. The government cut the rate because the chief actuary found that 9.5% is enough to fund the base plan over the long term. The enhanced CPP that started in 2019 isn't affected.
What is the maximum EI premium for 2027?
$1,161.12 for employees outside Quebec: 1.64% on up to $70,800 of insurable earnings. That's $38.05 more than in 2026. Employers pay 1.4 times that, up to $1,625.57 per employee.
Why will I pay more in 2027 if CPP is going down?
If you earn above about $86,700, the higher ceilings outweigh the lower rate. You pay EI on $1,900 more of your salary, at a slightly higher rate, and CPP2 on a higher band. At the top, the total employee maximum rises $28.60, to $5,798.12. You still reach the maximums and see the jump in your take-home later in the year.
Why is my saving smaller than the calculator says after tax?
Because base CPP contributions and EI premiums earn a non-refundable tax credit at the lowest rates (14% federal, plus 5.05% in Ontario). Pay less CPP and the credit shrinks too. In Ontario, about 19% of the CPP saving comes back as tax, so a $108 saving at $70,000 is closer to $87 in your pocket.
Does the CPP cut apply in Quebec?
No. Workers in Quebec contribute to the Quebec Pension Plan, which Retraite Québec sets separately, and pay a lower EI rate (1.29% for 2027) because Quebec runs its own parental insurance plan.
I'm self-employed. What changes for me?
You pay both halves of CPP, so the base rate drops from 9.9% to 9.5% and your rate on earnings up to the YMPE goes from 11.9% to 11.5%. On $70,000 of net self-employment income, that is $266 less. Self-employed people don't pay EI unless they opted in to special benefits.
Methodology and limits
The CPP rate comes from Finance Canada and the 33rd CPP Actuarial Report; EI from the Canada Employment Insurance Commission; 2026 figures from CRA. The 2027 YMPE and YAMPE are PayMetric Labs' own modelled estimate from Statistics Canada table 14-10-0223-01, using the CPP formula. Checked October 4, 2026.
Figures assume one employer for the full year, outside Quebec. The after-tax example uses the lowest federal and Ontario rates and ignores other credits. This is general information, not tax advice.