The 2027 Canada Pension Plan ceilings and the lower 2027 contribution rate, plus the announced 2027 Employment Insurance rate and maximum insurable earnings, with the verified 2026 figures alongside for comparison.
Applies in: CA
Two payroll deductions change on January 1, 2027, and they change in opposite directions. Canada Pension Plan contributions get cheaper per dollar, because the base rate falls, while Employment Insurance premiums get slightly more expensive, because both the rate and the earnings ceiling rise. The figures in this guide are the ones published by the Canada Revenue Agency and by Employment and Social Development Canada as of October 30, 2026. Where a figure is calculated from published inputs rather than published directly, the guide shows the arithmetic so it can be checked.
This guide covers employees and self-employed people outside Quebec. Quebec workers contribute to the Quebec Pension Plan, not the Canada Pension Plan, and Quebec residents pay a different Employment Insurance rate because of the Quebec Parental Insurance Plan. Those Quebec differences are stated where they apply, but this guide does not give Quebec Pension Plan figures.
The Canada Revenue Agency limits table publishes the 2027 ceilings as $76,700 for the Year's Maximum Pensionable Earnings, the first ceiling, and $87,400 for the Year's Additional Maximum Pensionable Earnings, the second ceiling. The 2026 ceilings were $74,600 and $85,000. The first ceiling is set from average wage growth in Canada, and the second ceiling sits above it: in 2026 the second ceiling was 114 percent of the first, and the 2027 pair keeps a similar relationship.
The basic exemption is $3,500. No CPP contribution is payable on the first $3,500 of pensionable earnings in the year. Pensionable earnings are the earnings between the basic exemption and the applicable ceiling. The exemption is the amount shown in the Canada Revenue Agency payroll tables, and it is the same $3,500 used in the 2026 tables.
Two ceilings mean two bands of earnings. Earnings from $3,500 up to $76,700 are subject to the CPP contribution. Earnings from $76,700 up to $87,400 are subject to the second additional contribution, CPP2, which began in 2024 as part of the CPP enhancement. Earnings above $87,400 are not subject to CPP or CPP2 contributions with that employer for the year.
The base CPP rate falls in 2027. Bill C-30, An Act to implement certain provisions of the Spring Economic Update tabled in Parliament on April 28, 2026, received Royal Assent on June 19, 2026. It reduces the base CPP contribution rate from 9.90 percent combined to 9.50 percent combined, effective January 1, 2027. For an employee, the base share falls from 4.95 percent to 4.75 percent, and the employer share falls by the same amount. The Canada Revenue Agency payroll deductions formulas guide lists this as an upcoming change for January 1, 2027, and states that the first additional and second additional rates are not affected.
The first additional contribution, part of the CPP enhancement phased in from 2019 to 2023, stays at 1.00 percent for the employee, matched by the employer. The total employee rate on earnings up to the first ceiling is therefore 5.75 percent in 2027, down from 5.95 percent in 2026. A self-employed person pays both the employee and employer shares, so the combined rate on that band is 11.50 percent in 2027, down from 11.90 percent in 2026. CPP2 stays at 4.00 percent for the employee, matched by the employer, and 8.00 percent combined for a self-employed person, on earnings between the two ceilings.
The maximums follow from the ceilings, the exemption, and the rates:
| Band | 2027 calculation | Employee maximum |
|---|---|---|
| CPP, up to the first ceiling | ($76,700 − $3,500) × 5.75% = $73,200 × 5.75% | $4,209.00 |
| CPP2, between the ceilings | ($87,400 − $76,700) × 4.00% = $10,700 × 4.00% | $428.00 |
| Combined | $4,209.00 + $428.00 | $4,637.00 |
For comparison, the 2026 maximums were $4,230.45 for CPP and $416.00 for CPP2, a combined $4,646.45. The combined maximum is $9.45 lower in 2027 than in 2026, because the rate cut outweighs the higher ceilings at the top of the bands. An employer pays the same maximums as the employee. A self-employed person pays both shares, so the combined 2027 maximum is $9,274.00. Contributions stop for the year with an employer once the maximum for that employment is reached, and the maximum applies separately to each employer: a person who changes jobs during the year starts contributing again with the new employer, and any overpayment is refunded through the income tax return.
CPP contributions are deducted only where the employment is pensionable employment and the worker is between 18 and 69 years old, is not considered disabled under the CPP or the Quebec Pension Plan, and has not filed an election to stop contributing between ages 65 and 69. A self-employed person with net self-employment income above $3,500 must contribute, and works out the amount on the income tax return. The maximum is prorated in the year a person turns 18 or 70, becomes disabled, dies, or files an election to stop contributing.
The Employment Insurance side is fully announced. On September 14, 2026, the Canada Employment Insurance Commission confirmed the 2027 premium rate and the maximum insurable earnings. The Commission sets the rate each year from a seven-year break-even forecast prepared by the EI Senior Actuary, and annual changes are subject to a legislated limit of five cents.
| Figure | 2027 | 2026 |
|---|---|---|
| Maximum insurable earnings | $70,800 | $68,900 |
| Employee rate, outside Quebec | $1.64 per $100 (1.64%) | $1.63 per $100 (1.63%) |
| Employer rate, outside Quebec | $2.30 per $100 | $2.28 per $100 |
| Maximum employee premium | $1,161.12 | $1,123.07 |
| Maximum employer premium | $1,625.57 | $1,572.30 |
The employer rate is 1.4 times the employee rate, as it is every year. The maximum insurable earnings are indexed annually and are the ceiling up to which EI premiums are collected. The 2027 rate equals the 2025 rate: the rate was $1.64 in 2025, fell to $1.63 in 2026, and returns to $1.64 in 2027.
Quebec residents covered under the Quebec Parental Insurance Plan pay $1.29 per $100 in 2027, with employers paying $1.81 per $100. The maximum employee premium in Quebec is $913.32, up $17.62 from $895.70 in 2026, and the maximum employer premium is $1,278.65. The reduction of 35 cents from the standard rate reflects the province administering its own parental insurance plan. Quebec Parental Insurance Plan premiums are separate and are set by Quebec.
The Premium Reduction Program also continues in 2027. Employers with registered short-term wage-loss plans can apply for a reduction of EI premiums, and the Commission stated that the program will provide roughly $1.7 billion in premium reductions in 2027, shared between registered employers and their employees. The reduced rate for a particular employer depends on its registered plan, so no single reduced figure is stated here.
Self-employed people are not covered by Employment Insurance automatically. A self-employed person who has entered an agreement to participate in the program pays premiums yearly when filing the income tax return. The 2026 self-employed figures published by the Canada Revenue Agency were $1.63 per $100 to a maximum of $1,123.07 outside Quebec, and $1.30 per $100 to a maximum of $895.70 in Quebec. This guide does not state a 2027 self-employed premium figure, because the 2027 self-employed page had not been updated to the 2027 rate when this guide was written; check the Service Canada self-employed premiums page before relying on a 2027 figure for an opted-in self-employed person.
CPP benefit amounts are a separate matter from contribution figures. The amount of a CPP retirement pension in pay is indexed each January, and the 2027 increase had not been announced as of October 30, 2026. This guide states no 2027 benefit amount and no percentage increase for benefits in pay. The maximum CPP retirement pension for a new pension at age 65 also depends on contribution history and the ceilings in the years contributed, so it cannot be read off the 2027 ceilings alone.
| CPP ceiling (YMPE), 2027 | $76,700 |
|---|---|
| CPP second ceiling (YAMPE), 2027 | $87,400 |
| CPP employee maximum, 2027 (calculated) | $4,209.00 |
| CPP2 employee maximum, 2027 (calculated) | $428.00 |
| EI maximum insurable earnings, 2027 | $70,800 |
| EI employee maximum, 2027 | $1,161.12 |
CPP maximums are calculated from the published ceilings, the $3,500 basic exemption, and the 2027 rates. EI maximums are published by the Canada Revenue Agency.
For 2027, an employee pays 5.75 percent of pensionable earnings between the $3,500 basic exemption and the $76,700 ceiling: 4.75 percent for the base plan plus 1.00 percent for the first additional contribution. The base rate falls from 4.95 percent in 2026 to 4.75 percent in 2027 under Bill C-30, which received Royal Assent on June 19, 2026, while the first additional rate of 1.00 percent does not change. The employer pays an equal amount. A self-employed person pays both shares, for a combined rate of 11.50 percent on the same band of earnings. On earnings above $76,700 up to the $87,400 second ceiling, the second additional contribution, CPP2, is 4.00 percent for the employee, matched by the employer, unchanged from 2026.
The maximum is $4,209.00 for CPP plus $428.00 for CPP2, for a combined $4,637.00. The arithmetic is set out in the guide: pensionable earnings up to the first ceiling are $76,700 minus the $3,500 basic exemption, which is $73,200, and 5.75 percent of $73,200 is $4,209.00. The CPP2 band is $87,400 minus $76,700, which is $10,700, and 4.00 percent of $10,700 is $428.00. For comparison, the 2026 maximums were $4,230.45 for CPP and $416.00 for CPP2, a combined $4,646.45, at the higher 5.95 percent rate on the lower $74,600 ceiling. An employer pays the same maximums as the employee, and a self-employed person pays both shares, so the combined 2027 maximum for a self-employed person is $9,274.00.
The 2027 employee rate is $1.64 per $100 of insurable earnings, or 1.64 percent, up from $1.63 in 2026, and it applies to earnings up to the maximum insurable earnings of $70,800, up from $68,900 in 2026. The most an employee pays in 2027 is $1,161.12, which is $38.05 more than the 2026 maximum of $1,123.07. Employers pay 1.4 times the employee rate, which is $2.30 per $100 in 2027, to a maximum of $1,625.57 per employee. The Canada Employment Insurance Commission set the rate on September 14, 2026, and it takes effect on January 1, 2027. Once earnings with one employer pass $70,800, no further EI premiums are deducted on earnings with that employer for the year.
Yes. A Quebec resident covered under the Quebec Parental Insurance Plan pays a lower EI rate because the province runs its own parental insurance plan. For 2027 the Quebec employee rate is $1.29 per $100 of insurable earnings, down from $1.30 in 2026, and the employer rate is $1.81 per $100. The maximum insurable earnings are the same, $70,800, so the maximum employee premium for a Quebec resident in 2027 is $913.32, up $17.62 from 2026, and the maximum employer premium is $1,278.65. Quebec workers also pay Quebec Parental Insurance Plan premiums separately, and those amounts are set by the province, not by the Canada Employment Insurance Commission, so they are not stated in this guide.
No. Workers whose province of employment is Quebec contribute to the Quebec Pension Plan instead of the Canada Pension Plan, regardless of where they live. The Canada Revenue Agency payroll pages state this directly, and they point employers to Revenu Quebec for Quebec Pension Plan contributions. This guide gives no Quebec Pension Plan rate or ceiling, because the Quebec plan is set separately and its figures were not checked for this guide. If you work in Quebec, check the Revenu Quebec pages for the plan that applies to you, and do not use the CPP ceilings and rates in this guide for Quebec employment.
Both sets of figures take effect on January 1, 2027. Before the first 2027 pay, payroll should confirm that the payroll system is using the 2027 ceilings, the 5.75 percent CPP rate, the 4.00 percent CPP2 rate, and the 2027 EI rate and maximum for the province of employment, and that Quebec employees are on the Quebec EI rate. The Canada Revenue Agency publishes payroll deductions tables and formulas for each year, and the 2027 tables should be checked when they are posted, because this guide states the ceilings and rates as announced on October 30, 2026, and a payroll table is the working document for deductions. An employee with more than one employer reaches the CPP and EI maximums separately with each employer, and any overpayment is sorted out on the income tax return, not by stopping deductions early.
No 2027 Quebec Pension Plan rate or ceiling is stated in this guide, because the Quebec plan is set separately and its 2027 figures were not opened on an official page for this guide. No 2027 CPP benefit amount or percentage increase is stated, because the January 2027 indexation of benefits in pay had not been announced as of October 30, 2026. No 2027 self-employed EI premium figure is stated, because the self-employed premiums page still showed 2026 figures when checked. Recheck the Canada Revenue Agency payroll deductions tables and the Service Canada benefit pages before the first 2027 pay period, and again when the 2027 payroll tables are posted: the pages govern over any summary, including this guide.