By True North Payroll · January 2, 2026 · Practical guide for Canadian small teams
CPP and EI change every year. This guide highlights the 2025/2026 values most payroll teams need, plus the most common mistakes to avoid.
| Item | 2025 | 2026 |
|---|---|---|
| YMPE (first ceiling) | $71,300 | $74,600 |
| CPP rate (employee/employer) | 5.95% | 5.95% |
| Basic exemption | $3,500 | $3,500 |
| Max CPP (employee/employer) | ~$4,034 | ~$4,230 |
| YAMPE (second ceiling) | $81,200 | $85,000 |
| CPP2 rate (employee/employer) | 4% | 4% |
| Max CPP2 (employee/employer) | $396 | $416 |
| Item | 2025 | 2026 |
|---|---|---|
| Max insurable earnings (MIE) | $65,700 | $68,900 |
| EI employee rate | 1.64% | 1.63% |
| Max employee premium | $1,077.48 | $1,123.07 |
| Max employer premium (1.4x) | $1,508.47 | $1,572.30 |
The most frequent errors are using last year’s rates, forgetting to prorate the CPP basic exemption by pay period, missing the 1.4x EI employer premium, and not stopping deductions after maxes are reached.
We apply CRA‑aligned 2025/2026 values, track annual limits, and calculate employer CPP/EI automatically.